April 16, 2009
Despite efforts by government and lenders to modify troubled
mortgages, growing numbers of Americans are in danger of losing their
homes. In fact, the pace of foreclosures actually increased in the
first three months of this year.
Foreclosure filings -- default notices, auction sale notices and bank repossessions -- were reported on 803,489 properties in the first quarter, a nine percent increase from the previous quarter and an increase of nearly 24 percent from the first quarter of 2008, according to RealtyTrac, an online marketplace for foreclosure properties.
That means one in every 159 U.S. housing units received a foreclosure filing during the first three months of the year.
Such filings were reported on 341,180 properties in March, a 17 percent increase from the previous month and up 46 percent from March 2008. The March and first quarter totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005.
The surge comes despite a decrease in bank repossessions, or REOs, which were down 13 percent from the fourth quarter of 2008 and three percent from February totals.
In the month of March we saw a record level of foreclosure activity -- the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record, said James J. Saccacio, chief executive officer of RealtyTrac. Since much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays.
Saccacio said its likely that the drop in REO activity can be attributed to processing delays, rather than to any of the foreclosure prevention programs currently in place. He says its very likely that well see the number of REOs increase again now that most of the moratoria have been lifted.
On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains, Saccacio said. But its unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.
Nevada, Arizona, California tops
Nevada continued to document the nations highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing -- more than five times the national average.
Foreclosure filings were reported on 41,296 Nevada properties during the quarter, an increase of 19 percent from the previous quarter and an increase of nearly 111 percent from a year earlier. Bank repossessions in Nevada were down 3 percent from the previous quarter, but defaults increased 27 percent and auction sale notices increased 35 percent.
Arizona posted the nations second highest state foreclosure rate for the first quarter, with one in every 54 housing units receiving a foreclosure filing, and California posted the nations third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.
Other states with foreclosure rates ranking among the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.
5 states, 60%
California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of the nations foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in the five states combined.
With 230,915 properties receiving foreclosure filings during the quarter, California accounted for nearly 29 percent of the nations total. The states foreclosure activity increased 35 percent from the previous quarter and 36 percent from the first quarter of 2008, and was states highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.
Despite a 12 percent decrease from the previous quarter, Floridas first quarter total was still second highest in the nation. Foreclosure filings were reported on 119,220 Florida properties, a 36 percent increase from the first quarter of 2008. The state posted the nations fourth highest state foreclosure rate during the quarter, with one in every 73 housing units receiving a foreclosure filing.
Foreclosure filings were reported on 49,119 Arizona properties in the first quarter of 2009, the third highest total among the states, and 41,296 Nevada properties received a foreclosure filing in the first quarter of 2009, the fourth highest total among the states.
Illinois posted the nations fifth highest total, with 38,966 properties receiving a foreclosure filing during the first quarter -- a 32 percent increase from the previous quarter and a 68 percent increase from the first quarter of 2008. With one in every 135 housing units receiving a foreclosure filing, the states foreclosure rate also ranked fifth highest among the states.
Rounding out the states with the 10 highest foreclosure activity totals in the first quarter were Michigan, Ohio, Georgia, Texas and Virginia.
