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Foreclosure Numbers Fall as Processing Stalls




Foreclosures were reported on 332,172 properties in October, a 4% decrease from the previous month and almost exactly the same total reported in October 2009, according to RealtyTrac. One in every 389 U.S. housing units received a foreclosure filing during the month. The number of homes taken over by banks fell 9% in October as processing stalled by the foreclosure crisis.

“October marks the 20th consecutive month where over 300,000 U.S. homeowners received a foreclosure notice,” said James J. Saccacio, chief executive officer at RealtyTrac. “The numbers probably would have been higher except for the fallout from the recent ‘robo-signing’ controversy — which is the most likely reason for the 9 percent monthly drop in REOs we saw from September to October and which may result in further decreases in November.”

Foreclosure Activity by Type

A total of 100,575 U.S. properties received default notices (NOD, LIS) in October, a 2% decrease from the previous month and a 19% decrease from October 2009.

Lenders foreclosed on 93,236 U.S. properties in October, down 9% from the record high in the previous month but still up 21% from October 2009. Bank repossessions decreased month-over month in 33 states and the District of Columbia, while 14 states posted year-over-year decreases. Including October, lenders have foreclosed on an average of more than 91,000 properties each month this year.

Top State Foreclosure Rates

Nevada continued to document the nation’s highest state foreclosure rate in October, with one in every 79 housing units receiving a foreclosure filing during the month. A total of 14,205 Nevada properties received a foreclosure filing during the month, a decrease of 13% from the previous month but an increase of nearly 3% from October 2009. This was the first year-over-year increase in Nevada foreclosure activity since September 2009.

Florida foreclosure activity increased on a year-over-year basis for the second straight month, helping the state to maintain the nation’s second highest state foreclosure rate for the third month in a row. One in every 155 Florida housing units received a foreclosure filing during the month. This number is 2.5 times the national average.

One in every 165 Arizona housing units received a foreclosure filing in October, the nation’s third highest state foreclosure rate for the third month in a row. A total of 16,538 Arizona properties received a foreclosure filing during the month, a decrease of 3% from the previous month but an increase of nearly 24% from October 2009 — the second straight month where the state’s foreclosure activity increased on a year-over-year basis following seven straight months of annual decreases in foreclosure activity.

Other states with foreclosure rates ranking among the top 10 in October were California, Michigan, Utah, Georgia, Idaho, Illinois and Colorado.

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