Foreclosures climbed to a new high in July and remain a major obstacle to a housing and economic recovery. However, a large number of the nation’s foreclosures were concentrated in four states which accounted for 57% of all foreclosures. The following article from Housing Predictor has more on this.
The foreclosure epidemic reached a new milestone in July setting another record, according to the RealtyTrac monthly report. Foreclosure filings were reported on 360,149 properties nationwide, rising 32% from one year ago.
“July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity,” said James J. Saccacio, CEO of RealtyTrac.
“Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions.”
Nevada, California, Arizona Top States
For the 31st consecutive month Nevada documented the nation’s highest state foreclosure rate with one in every 56 housing units receiving a foreclosure filing in July — more than six times the national average. Initial default notices (NOD) in Nevada dropped 18% from the previous month, likely the result of a new state law requiring lenders to offer mediation to homeowners facing foreclosure.
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Initial defaults (NOD) in California spiked 15% over June as the state registered the nation’s second highest foreclosure rate for the third month in a row. One in every 123 California housing units received a foreclosure filing in July, nearly three times the national average. Scheduled auctions (NTS) in California were down 1% from the previous month, but bank repossessions (REO) were up 4% — leaving overall foreclosure activity up nearly 7% on a month-over-month basis.
One in every 135 Arizona housing units received a foreclosure filing in July, the nation’s third highest rate and more than 2.5 times the national average. Scheduled auctions (NTS), the first public record in the Arizona foreclosure process jumped 25%.
Other states with foreclosure rates ranking among the nation’s 10 highest were Florida, Utah, Idaho, Georgia, Illinois, Colorado and Oregon.
Four States Account for More than Half
The top four state foreclosure activity totals in July were reported by California with 108,104 properties receiving a foreclosure filing; Florida with 56,486 properties receiving a foreclosure filing; Arizona with 19,694 properties receiving a foreclosure filing; and Nevada with 19,535 properties receiving a foreclosure filing. Together these four states accounted for nearly 57% of the nation’s total foreclosure activity.
Although Florida bank repossessions (REO) were cut 8% from June, the state’s overall foreclosure activity was still up 7% from June because of a 9% month-over-month increase in initial default notices (LIS) and scheduled auctions (NFS).
Illinois registered the fifth highest state foreclosure activity total, with 14,524 properties receiving a foreclosure filing during the month. Overall foreclosure activity in Illinois increased nearly 35% from the previous month, boosted by an 86% surge in default notices (LIS), which bounced back from low levels in May and June. A state law enacted April 5 gave delinquent borrowers an extension of up to 90 days before the start of the foreclosure process.
Other states with totals among the 10 highest in the country were Texas (12,077), Georgia (11,136), Ohio (11,021), Michigan (8,257) and New Jersey (6,467).
This article has been republished from Housing Predictor. You can also view this article at Housing Predictor, a real estate forecasting site.