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Foreclosure filings in the second quarter increased 5% from the previous quarter, and nearly 23% compared with the same period a year ago, according to RealtyTrac, an online marketplace for foreclosure properties, and its U.S. Foreclosure Market Report.
Foreclosure filings, which include default notices, scheduled auctions and bank repossessions, were reported on 937,840 properties in the third quarter. One in every 136 U.S. housing units received a foreclosure filing during the quarter – the highest quarterly foreclosure rate since RealtyTrac began issuing its report in 2005.
"Bank repossessions, or REOs, jumped 21% from the second quarter to the third quarter, corresponding to jumps in defaults and scheduled auctions in the previous two quarters," James J. Saccacio, RealtyTrac's CEO, said of the report's findings. "REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some of the pent-up foreclosure inventory caused by legislative delays, loan-modification efforts and high volumes of distressed properties."
More than 343,600 foreclosure filings were reported on properties in September, a 4% decrease from the previous month but a 29% increase compared with the same period last year. Despite the monthly decrease, September's total was the third highest monthly total in the RealtyTrac report's history, behind only July and August of this year.
Nevada continued to document the nation's highest state foreclosure rate in the third quarter, with one in 23 housing units receiving a foreclosure filing, nearly six times the national average. Foreclosure filings were reported on 47,925 Nevada properties during the quarter, an increase of nearly 10% from the previous quarter and an increase of nearly 59% from the third quarter of 2008. Nevada REO activity in the third quarter increased 29% from the previous quarter and scheduled auctions increased 26% from the previous quarter. Defaults, however, decreased 8% from the previous quarter.
Arizona posted the nation's second highest state foreclosure rate in the third quarter, with one in every 53 housing units receiving a foreclosure filing, and California posted the nation's third highest state foreclosure rate, also with one in every 53 housing units receiving a foreclosure filing during the quarter.
Other states with foreclosure rates ranking among the top 10 in the third quarter were Florida, Idaho, Utah, Georgia, Michigan, Colorado and Illinois, according to the report.
With 250,054 properties receiving foreclosure filings during the quarter, California accounted for nearly 27% of the nation's total. The state's foreclosure activity decreased nearly 2% from the previous quarter because of a 10% drop in default notices, but scheduled auctions increased 4% from the previous quarter and REOs increased 12% from the previous quarter.
Florida foreclosure activity in the third quarter decreased less than 1% from the previous period, but the state still posted the second highest foreclosure activity total last quarter. Foreclosure filings were reported on 156,924 Florida properties, a 23% increase from a year ago. Default notices in Florida decreased 6% from the previous quarter while scheduled auctions increased 5% from the previous quarter and REOs increased 16% from the previous quarter.
Arizona posted the nation's third highest foreclosure activity total in the third quarter, with 50,342 properties receiving a foreclosure filing during the quarter – a 5% increase from the previous quarter and a 25% increase from Q3 2008.
Nevada posted the nation's fourth highest foreclosure activity total with 47,925 properties receiving a foreclosure filing in the third quarter, followed by Illinois with 37,270 properties receiving a foreclosure filing, and Michigan with 37,026 properties receiving a foreclosure filing. All three states reported increasing foreclosure activity from the previous quarter and from Q3 2008. Other states with foreclosure activity totals among the nation's 10 highest were Georgia (33,385), Texas (29,838), Ohio (29,645) and New Jersey (18,108).
