Home Foreclosures Fall to Lowest Level in 8 Years

Foreclosures in June hit the lowest level since July 2006, before the housing price bubble burst.

Foreclosure Rates
Rich Pedroncelli/AP
By Elvina Nawaguna

WASHINGTON -- Foreclosure activity in the United States dropped last month to the lowest level since July 2006, before the housing bubble burst, and likely will continue to drop through the first half of next year, an industry group said Thursday.

RealtyTrac, which tracks housing market trends, said that 107,194 properties across the country were at some stage of the foreclosure process in June. That marked a 2 percent decline from May and left foreclosure activity, which includes foreclosure notices, scheduled auctions and bank repossessions, 16 percent below the year-ago level.

"Over the next six to nine months, nationwide foreclosure numbers should start to flatline at consistently historically normal levels," RealtyTrac vice president Daren Blomquist said in a statement.

June was the 45th consecutive month foreclosure activity was down on an annual basis.

Declining foreclosures have reduced the supply of properties on the market, pushing home prices up. That, combined with higher mortgage rates, has slowed the recovery of the U.S. housing market.

Lenders reclaimed a total of 26,889 properties in June, down 5 percent from May and the lowest level since June 2007. Repossessions were down 24 percent from a year ago.

Nationwide, 46,743 properties were set for foreclosure auctions, a 13 percent decrease from the last year, bringing scheduled foreclosure auctions to the lowest level since July 2006.

Lenders started the foreclosure process on 47,243 properties in June, down 18 percent from a year ago, and the lowest level since November 2005.

Florida continued to have the nation's highest foreclosure rate, followed by Illinois, New Jersey and Nevada.

The RealtyTrac report also included data for the first half of the year, which showed foreclosure activity decreased in 79 percent of the 212 metropolitan areas during the first half of 2014.

Foreclosure activity for the first six months of the year was down 23 percent from the same period in 2013.

"While it's important that any remaining foreclosure infection is addressed promptly to keep it from festering, foreclosures are no longer a widespread contagion threatening to derail the housing market's return to full health," Blomquist said.


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49 Comments

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sandbakvl

JUST THE OTHER DAY , I READ ON MSN THAT FLORIDA HAS ITS HIGHEST REPO RATE EVER. WHO SHOULD I BELIEVE, HUFFINGTON OR MSN.................. YOU ARE RIGHT MSN

Thursday at 8:27 PM Report abuse +1 rate up rate down Reply
rivera8787

They're not letting it go to foreclosure....they're just taking the short sell and walking away with at least something....SO....another misleading headline to make it seem like this administration can help the economy....yeah right...

Thursday at 4:58 PM Report abuse -3 rate up rate down Reply
1 reply to rivera8787's comment
jpfmtka

What lender/bank/mortgage/real estate/brokerage firm are you affiliated with? Let us have some substance to support your claims.

Thursday at 5:09 PM Report abuse +2 rate up rate down Reply
1 reply to jpfmtka's comment
d.barack

You have some of Barry's substance running down your chin.

Friday at 3:21 AM Report abuse -1 rate up rate down
bchrist751

Now one must have a Job, a size able down payment and a 750 credit score which eliminated most democrats....

July 17 2014 at 2:06 PM Report abuse -1 rate up rate down Reply
3 replies to bchrist751's comment
davchff

You can't be foreclosed on if you can't afford one in the first place, more spin..dizzy yet?

July 17 2014 at 1:53 PM Report abuse -1 rate up rate down Reply
calderasf

Great news that this part of the great recession is about over. Of course repubnuts will scream the economy is a train wreck but facts never lie. Thanks for the leadership that saved us from completely going under by increasing gov't spending not decreasing it.

July 17 2014 at 1:40 PM Report abuse +2 rate up rate down Reply
1 reply to calderasf's comment
d.barack

Hey numbskull, the economy was saved by TARP and the FED printing money. Buy a clue dunce, all of Obama's economic policies put us farther in the hole. DMFK.

July 17 2014 at 1:53 PM Report abuse -3 rate up rate down Reply
kentwoodtjt

toosmart4u, have you lost your mind, Obama has done nothing to clean this mess up, a couple of programs that he had nothing to with, of course foreclosures are down, HOW MANY MORE PEOPLE CAN LOSE THEIR HOMES, lets please use some common sense people, it's not rocket science

July 17 2014 at 11:55 AM Report abuse +1 rate up rate down Reply
1 reply to kentwoodtjt's comment
calderasf

yes deny what our president did by pushing spending not decreasing time to stick ur head in the sand

July 17 2014 at 1:40 PM Report abuse -2 rate up rate down Reply
toosmart4u

Way to go President Obama, hard job cleaning up the mess of the bush jr. administration. Not to mention the mess in congress right now but we will try to clean it up this election and send the republicans home for good.

July 17 2014 at 11:17 AM Report abuse -1 rate up rate down Reply
3 replies to toosmart4u's comment
Leroy Gd

Did this story mention that the banks are sitting on foreclosures and that is why the foreclosure rate is down? No the huff/puff/aol excrement pusher will only report the obama regime propaganda, no news, never.

July 17 2014 at 11:11 AM Report abuse +2 rate up rate down Reply
1 reply to Leroy Gd's comment
calderasf

Ok, let me explain slowly those houses have already been FORECLOSED so they can't undergo foreclosure. The report is about NEW foreclosures not amount of already foreclosed houses held by banks. So with housing prices raising so fast and one reason is a lack of inventory the banks would keep their foreclosed houses off the market because...........

July 17 2014 at 1:47 PM Report abuse rate up rate down Reply
2 replies to calderasf's comment
vlady1000

Wow, somebody (calderasf) with a brain and uses it to make sense.

Thursday at 9:18 PM Report abuse rate up rate down
thejrd

I believe what Leroy was trying to say was that banks are 'sitting on foreclosures' by not foreclosing on non payers. The banks don't want to foreclose on ALL the delinquent accounts at one time because it would throw the housing market and the economy deeper into trouble. I actually know people that have been told by their mortgager not to abanden their homes even thogh they haven't made a mortgage payment in several years.

Friday at 2:39 AM Report abuse +1 rate up rate down
moretrorun

Wouldn't it make sense for price to decline when interest rates increase? Interest rate increases have barely begun. Let's see how far prices fall!

July 17 2014 at 11:04 AM Report abuse rate up rate down Reply
1 reply to moretrorun's comment
calderasf

Not really other factors always involved, rise in income, hot job market, low inventory, rates still way below historic avgs.

July 17 2014 at 1:48 PM Report abuse +1 rate up rate down Reply
5 replies to calderasf's comment
bchbum63

B.S.

And the reason sales are rising is that corporations and foreigners are buying houses here as investments to rent out.

We're in Big trouble.

July 17 2014 at 10:39 AM Report abuse +3 rate up rate down Reply
1 reply to bchbum63's comment
calderasf

When a country has foreigners investing in it it is always great news they want their money safe and their betting US is the place to do it. Rent is always determined by market not by who owns the house,

July 17 2014 at 1:51 PM Report abuse +1 rate up rate down Reply
2 replies to calderasf's comment
kentwoodtjt

You haven't a clue of what you are talking about, please stop embarrassing yourself

July 17 2014 at 2:34 PM Report abuse rate up rate down
vlady1000

Mostly true, but if you are a great landlord and your tenants pass that word on, you can get a little bit of a premium for it!!

Thursday at 9:26 PM Report abuse -1 rate up rate down