RealtyTrac: Foreclosure Filings Down 11% From Year Ago

RealtyTrac, Irvine, Calif., reported nearly 534,000 foreclosure filings of properties in the U.S. through the first six months of 2016, a 20 percent decrease from the previous six months and down by 11 percent from a year ago.

The company’s Midyear 2016 U.S. Foreclosure Market Report noted, however, that 19 states posted year-over-year increases in foreclosure activity in the first half of 2016, including Massachusetts (up 46 percent); Connecticut (up 40 percent); Virginia (up 18 percent); Alabama (up 11 percent); and New York (up 10 percent).

Among the nation’s 20 most-populated metro areas, five posted year-over-year increases in foreclosure activity: Boston (up 38 percent); Philadelphia (up 7 percent); New York (up 4 percent); Washington, D.C. (up 3 percent); and Baltimore (up 1 percent).

“While U.S. foreclosure activity is still above its pre-recession levels, many of the states hit hardest by the housing crisis have now dropped below pre-recession foreclosure activity level,” said Daren Blomquist, senior vice president with RealtyTrac. “With some exceptions, states with foreclosure activity continuing to run above pre-recession levels tend to be those with protracted foreclosure timelines still working through legacy distress from the last housing bust.”

In the second quarter, RealtyTrac reported 280,989 properties with foreclosure filings, down by 3 percent from the previous quarter and down by 18 percent from a year ago to the lowest level since fourth quarter 2006. However, the report noted nationwide foreclosure activity in the second quarter was still 21 percent above the pre-recession average of 232,082 properties with foreclosure filings per quarter in 2005, 2006 and 2007.

But the report said second quarter foreclosure activity was below pre-recession averages in 15 states, including Arizona (13 percent below); California (25 percent); Colorado (72 percent); Georgia (33 percent); Michigan (46 percent); Nevada (18 percent); Ohio (9 percent); and Texas (46 percent). States where second quarter foreclosure activity was still above pre-recession averages included Florida (26 percent); New Jersey (215 percent); Illinois (36 percent); New York (127 percent); Indiana (2 percent); South Carolina (376 percent); Massachusetts (127 percent); and Washington (29 percent).

“South Florida saw a 34 percent drop in foreclosure filings year-over-year,” said Mike Pappas, president and CEO of Keyes Co., covering the south Florida market. “With strong employment, low interest rates, and with lenders continuing to carefully scrutinize borrowers–foreclosures will soon be at the lowest levels in a decade.”

For just June, RealtyTrac reported 94,469 foreclosure filings, down by 6 percent from May and down by 19 percent from a year ago to the lowest level since July 2006.

Nationwide 0.40 percent of all housing units (one in 249) had a foreclosure filing in the first six months of 2016. States with highest foreclosure rates were New Jersey (0.98 percent); Maryland (0.90 percent); Delaware (0.78 percent); Florida (0.70 percent); and Nevada (0.68 percent).

Among metropolitan statistical areas with at least 200,000 people, those with the highest foreclosure rates in the first half of 2016 were Atlantic City, N.J. (1.85 percent); Trenton, N.J. (1.31 percent); Baltimore (0.96 percent); Lakeland-Winter Haven, Fla. (0.91 percent); and Rockford, Ill. (0.91 percent).

Other report data:
–253,408 foreclosure starts in the first half of 2016, down by 17 percent from a year ago the lowest level for any half-year period since it began tracking foreclosure starts in 2006.
–Lenders foreclosed on 197,425 properties in the first half of 2016, down by 6 percent from a year ago, but still 48 percent above the pre-recession average of 133,391 per half-year.
–227,473 foreclosure auctions (which in some states is also the foreclosure start) were scheduled in the first half of 2016, down 23 percent from a year ago.
–27 percent of all properties sold at foreclosure auction were purchased by third-party investors, the highest share for the first six months of any year since.
–The investor share of purchases at foreclosure auction reached 20 percent or higher in only two previous years: 2005 (20 percent) and 2015 (22 percent). The investor share of purchases at foreclosure auction dropped to a 17-year low of 11 percent in 2008.
–Foreclosures completed in the second quarter took an average of 629 days from the first public notice of foreclosure to complete the foreclosure process, up from 625 days the previous quarter and unchanged from a year ago.
–States with the longest foreclosure timelines were New Jersey (1,249 days), Hawaii (1,236 days), New York (1,058 days), Utah (1,025 days) and Florida (1,012 days).
–States with the shortest foreclosure timelines were Virginia (195 days), Minnesota (219 days), Mississippi (237 days), Tennessee (238 days) and Wyoming (242 days).