Foreclosures slow in the hardest-hit states, but jump in several others
Filed under: Economy, Investing
The number of foreclosures remain high in the four states that top the list -- Nevada, California, Florida and Arizona -- but the trend appears to be moving in their favor. All four saw declines in their foreclosure filings from September to October, according to RealtyTrac's October 2009 U.S. Foreclosure Market Report. Arizona, Florida and Nevada even saw fewer foreclosure filings year-over-year compared to October 2008.Nationwide for the third consecutive month, foreclosure filings dropped. These filings, which include default notices, scheduled foreclosure auctions and bank repossessions, totaled 332,292 in October 2009, a decrease of 3% from September. That does represent an increase of 19% from October 2008, but foreclosure moratoriums were starting at that time and continued to build through the end of the year. So, year-over-year comparisons may make things look worse than they are through the end of 2009.
"Three consecutive monthly declines is unprecedented for our report, and on first blush an indication that the foreclosure tide may be turning," James J. Saccacio, chief executive officer of RealtyTrac, said in a statement released with the report. "However, the fundamental forces driving foreclosure activity in this housing downturn -- high-risk mortgages, negative equity, and unemployment -- continue to loom over any nascent recovery. And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states."
Arizona saw the biggest drop, with 10.6% fewer foreclosures in October than September. The state's total foreclosure filings in October were 13,345, or one in every 200 units. Its year-over-year decline was 23.77%. Nevada saw a huge drop from October to September of 26.24%, but its year-over-decline was just 4.43%. Total Nevada flings were 13,842, or one in every 80 units. Florida saw filings drop 5.68% from September to October and down 4.44% year-over-year, but it still showed 51,911 filings, or one in every 168 units.
Of the four hardest-hit states California had the lowest drop -- just 1.06% from September to October. Year-over-year filings went up 49.98%. California maintained it's top spot in number of filings with 85,420, which represents one in every 156 units.
Where the Big Jumps Were
Illinois, which posted the third-highest state total after California and Florida, with 19,946 properties getting foreclosure notices, also saw a huge spike of 56.18% in foreclosure filings from September to October. This was the highest monthly total for Illinois since RealtyTrac started issuing this report in January 2005. Illinois is the only state in the top 10 that posted a monthly increase in foreclosure filings.
Other states that posted a major monthly jump in filings included Alaska (up 35.11% on a monthly basis and 17.83% year-over-year), Delaware (up 106.10% in October and 112.08% year-over-year), New Mexico (up 55.89% in October, but it's year-over-year percentage of 371.21% is likely overstated because of a change in how foreclosures were calculated), and North Dakota (up 73.53% in October and 40.48% year-over-year).
These numbers show that the hardest-hit states, while still reporting high numbers of foreclosures, are at least seeing them drop. Other states, however, are experiencing significant increases from previous months. The good news is that 33 states saw fewer foreclosures filings from September to October, while 17 states had an increase. Year-over-year, the news isn't as good. Only 15 states recorded a decrease in filings year-over-year, while 35 had an increase.
Four states still accounted for a majority of foreclosure filings in October: California, Florida, Illinois and Michigan together accounted for 52% of the nation's total foreclosure activity. Other states in the top 10 included Nevada, Arizona, Georgia, Texas, Ohio and New Jersey.
The housing market certainly isn't out of the woods, but at least the current trends appear to be improving. But the big question is: Will foreclosures start creeping up again as unemployment remains high and so-called Alt A loans (those that required less documentation from borrowers) begin to change rates in 2010? So, it's certainly not time to celebrate the end of the housing crisis. With the passage of an expanded tax credit for buying homes, more people who have been on the sidelines may decide it's time to step up.
Lita Epstein has written more than 25 books including The 250 Questions Everyone Should Ask About Buying Foreclosures.
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Reader Comments (Page 1 of 1)
11-12-2009 @ 10:17AM
sinking said...
foreclosures will sink again next year when all the 5yr adjustables from 2005 come time to adjust.Oh its true because I have one and so do thousands of others.By the way 600 k homes in my area bought for this price have a value of less than 250k,so with the stories you here about others,my back yard is much worse than 90% of others.My problem though,not yours.
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11-12-2009 @ 10:16AM
jeff said...
YES THIS ARTICLE SHOWS THE REAL TRUTH NOT YESTERDAYS HOME PRICES STABILIZE ... PRICES ON HOMES ARE STILL TOO HIGH NEED TO DROP ANOTHER 20% IN THE BIG CITIES LIKE CHICAGO, SF, NY SINCE THEY WERE 300% OVERPRICED DUE TO INVESTORS!! So do not listen to the greedy REALTOR who tells you to buy now because the price is down 30% wait until it is down 50% and better yet do not use the REALTORS who do not deserve to make 5% for selling your house but should be charging a flat fee of $300 to $500 for the little work they do!! Wait and buy next summer by then prices will drop as the foreclosures continue to mount up and banks are willing to take a small loss to get some of their capitol back!!
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11-12-2009 @ 10:36AM
GUY said...
Its amazing how much redistribution of wealth looks like redistribution of poverty 17% unemployment are the poor getting any better,or it all just a hoax,where is the hope and change.
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11-12-2009 @ 11:06AM
MR D said...
Funny the news this morning says the forclosers are up again here in Nevada I wonder where they get there figures
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11-12-2009 @ 11:15AM
It Ain't Over Yet! said...
There are tens of thousands of 5 yr. adjustable-rate mortgages that were written back at the peak of the bubble frenzy and have had very affordable monthly payments.. until 2010 and 2011.. then BAM!! Some of them will rise as much as 40% in monthly payment cost. All this just as many folks who hold those mortgages are cashing the last check of their unemployment benefits and having their credit topped out. Average home prices are going to drop at least another 20% by a year from now and will still not have hit rock bottom. This mess isn't going to stop developing for at least few more years and isn't going to completely go away for well over a decade past that. Get used to it. It's all part of the new normal.
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11-12-2009 @ 11:30AM
ajgorm said...
Come on they cant give us 100 year loans at 1 % what is this world coming to GREED . What do banks want us to buy some frilly carpets and string ornaments for the bank. AND BIGGER VAULTS..OUR Congress is weak they cant do anything. HOW about lower rates can we vote on that ? No way our government cant do a thing. Do you call that a government that cant even get us home loans we can afford OF COURSE NOT> It is a pillow party at Pelos's featuring Barney the dancing GOOF with Reid singing the Blues with Bill.
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11-12-2009 @ 12:39PM
mif991 said...
The way it is going we'll foreclose after we lose our job, then we'll go to jail for not purchasing Obama's health care....not the change I was looking for.
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11-12-2009 @ 1:19PM
Fred said...
What frckn liars.
There aren't less. They simply have held off foreclosing, so Obama's numbers don't look as bad as they really are.
And the retail collapse is around the corner. But hey, go shopping, shop, shop.....the worst is still ahead.
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11-12-2009 @ 2:39PM
AL said...
Trust me when I say that after the first of the year, your going to see commercial foreclosures that will make the housing mess, seem small in stature. Your definitely going to see many malls with huge vacancys as they over built and now the economy will not support this real estate. Companies that manage these box business's are already in deep trouble. Management refuses to cut rents and they are losing business's at an alarming rate, with huge losses after January. As one blogger stated, you ain't seen nothi ng yet. Recession over? Look at how Wall Street is pumping up the market to make you believe that all is well and that's just more baloney. They want you the small investor to buy into their money machine, but unlike you, they have insider information and will get out and make money, while you lose your ass.
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11-12-2009 @ 2:47PM
Wayne said...
Gotta laugh ....... Here I am begging the Bank to Foreclose on me. Ya know what ......... they can't. Have not paid on my loan in 12 months. It is so insane in points to criminal action on the part of BOA.
With a mortgage of the original lender who sold it to Countrywide. Countrywide did no PAPER WORK. They did not file at the Title Co or with the county recorders office. How insane. BOA has no Paperwork on my loan. Gotta freaking laugh. Yet BOA sent me a bogus modification with a 9.5% interest making my payments higher then the orriginal loan. Now tell me .... how can BOA modify a loan they don't have. Quit making my payments when I fell behind and they held my check for a month and a half putting me in the catagory of foreclosure. They didn't even put it toward the mortgage. When I questioned them on this they, they told me, this was proper proceedure for someone who filed for hardship. When I asked them what do they want me to do next, they told me, "we want you to make another loan payment but let me tell you this is NOT Garruanteed". Not quite under standing that statement, I asked them what do you mean? They said " It means if you make a payment we could still foreclose on you". Now I ask any Sane Person, with a comment like that, would you still make a payment? That almost boarders on Racketeering.
So here I sit .... still waiting. I relish the thought of going to court with these as%Hol^es. Greed that's all it is .... Mind you, with all this said, BOA does NOT own the loan, They are Servicing the Loan. This should be no sweat off their you know whats and they should have been a little more concerning that nothing was done right and been a little more helpfull in wanting to straighten everything out, but NO they just want to harrass me and ruin my credit report. Oh well ........ I cannot bring myself to give them one red dime on my UPSIDE DOWN house that they have no business even servicing neverless try and foreclose on me. Wish me Good Luck.
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11-12-2009 @ 2:46PM
Lucas said...
Wait untill the shadow inventories appear.America has built a large part of its economy on homeownership. Owning a home is part of the ever more elusive American Dream. Yet over time, owning a home became a larger and larger burden as new buyers were required to take on bigger debt loads merely to buy a basic home. Incomes weren’t rising so debt was the new subsidy. The apex of the bubble was reached in 2005 although prices didn’t start falling in drastic fashion for a couple years later. The U.S. Treasury and Federal Reserve are largely to blame for inciting the biggest housing bubble the world has come to know. Wall Street is equally to blame for creating the structure that allowed this to happen as they championed de-regulation and completely neglected any fiscal responsibility.
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11-12-2009 @ 2:51PM
tom said...
I have a friend that inspects HUD houses after the owners have been evicted. Her area is less than two townships wide. She inspects and photographs 60 to 65 homes a month. That is how many foreclosures are in this area from just HUD houses.
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11-12-2009 @ 2:57PM
Wayne said...
Tom (on 13) ... When your friend takes the pictures are the houses still intact? In other words are the plumbing and fixtures still there? How about the copper wiring?
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11-12-2009 @ 3:01PM
Donovan said...
Well, I'm not to sure just how accurate and factual this foreclosure information is. People are still losing their jobs, home prices are not yet stable. Home prices in Florida have risen. However, thats due to the seasonal price changes. Florida Real Estate prices always increase between October and early April. The Realtors figure the folks from up North are willing to spend a few extra bucks, to get out of the cold. However, the banks Don't quite see the increase in value, as much as the Real Estate Agents do, when the bank appraises the property for your mortgage. As for buyers. The buyers are still looking for those bargain prices when it come to purchasing a home. So, only time will tell just how well the housing market is really doing.
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11-12-2009 @ 3:10PM
huh? said...
let me see if i understand this.... instead of getting 20 lashes, we'll get 19... so that's much better?
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11-12-2009 @ 3:40PM
dan said...
We are in the stage of mafia capitalism and the banks are perpetrating it on you, when in fact they made the bad loans and created the derivatives. They should have not been bailed out but broken up, as Teddy Roosevelt did to trusts. What we have here is legalized mafia style collections and will drain our economy of any future faster than the military industrial complex, social security, and medicare will.
But yet the right still screams it's big government that caused the bad loans and you need to go to the Capital and parade around yelling no new taxes and down with health care, and please get rid of the regulations on banks and multinational corporations.
Doesn't this sound odd since they were the ones that pushed for deregulation and lower taxes on the wealthy for the last 40 years. And now taxes on the wealthy and corporations have been the lowest they have ever been since 1940. Somethings a little fishy here...........like they would like to have their cake and eat it too........................you think?
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11-12-2009 @ 3:50PM
dan said...
Most Americans like to call Germany a socialist country but their economy is getting better and their unemployment rate is at 8%, and falling. Why is that? They decided to bail out the consumer, you know the people who make up 70% of the economy, by keeping them employed. The Germans are giving businesses money to keep people employed and not lay them off. They started with the bottom up approach, by deciding not to bailout the bad banks. It's funny how the word socialism get bandied about in this country and the wealthy always seem to come out on top.
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11-12-2009 @ 5:22PM
Joe said...
The sky is not falling. With so many people buying up the foreclosures at rock bottom prices they now have very low monthly payments, and now a lot of extra cash at the end of the month. That alone is going to help turn the economy around, plus the pent up demand for everything. Remember money does not disappear it just stops moving or shifts to someone else. If you have a job, go buy something.
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11-12-2009 @ 11:03PM
DAVO said...
THIS IS BECAUSE THEY HAVE FIGURED OUT HOW TO SIDE RAIL FORCLOSES AND HIDE THEM AND KEEP THEM OFF THE MARKET .
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