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James Quinn is a senior director of strategic planning for a major university. James has held financial positions with a retailer, homebuilder and university in his 25-year career. Those positions included treasurer, controller, and head of strategic planning. He is married with three boys and... More
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  • FORECLOSURES - 4.3 MILLION ANNUAL PACE 0 comments
    Aug 13, 2009 12:06 PM

    Fascinating foreclosure information that will either be ignored or spun as positive by the mainstream media. Foreclosures in July totaled 360,000. That is a 4.3 million annual pace. For some perspective, existing home sales are pacing at 4.9 million this year. These charts tell a disturbing story. Only 36% of all the home sales in the U.S. in the 2nd quarter were actually a traditional sale between two parties. The rest were basically bank sales. You can clearly see what kind of deadbeats were allowed to be homeowners in the last ten years. These scumbags trash the houses when they know they are going to lose it. They are no better than animals in my book.

    The 2nd chart shows that a bunch of suckers have been lured into the housing market by the $8,000 1st time buyer credit. They have bought the line from the NAR that it is the best time to buy. They will be sorry. The "investors" never seem to learn their lessons. Home prices will be no higher than they are today in 10 years. These investors will lose again.

    Check out your state foreclosure stats. I keep hearing that California has bottomed and is recovering. Jim Cramer says so. Well, foreclosures were up 49% in July to 108,000. That is an annual rate of 1.3 million. Sounds like recovery to me. It does appear that people from Vermont, Nebraska, and Montana have been living within their means. Kudos.

     

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    U.S. Foreclosure Activity Up 32 Percent from July 2008
    Over 360,000 Households Receive Foreclosure Filings, Setting New Record

    IRVINE, Calif. — August 13, 2009 — RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its July 2009 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 360,149 U.S. properties during the month, an increase of nearly 7 percent from the previous month and an increase of 32 percent from July 2008. The report also shows that one in every 355 U.S. housing units received a foreclosure filing in July.

    “July marks the third time in the last five months where we’ve seen a new record set for foreclosure activity,” noted James J. Saccacio, chief executive officer of RealtyTrac. “Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we’re seeing significant growth in both the initial notices of default and in the bank repossessions.”

    View U.S. foreclosure heat map and comment on this report.

    Nevada, California, Arizona post top state foreclosure rates

    For the 31st consecutive month Nevada documented the nation’s highest state foreclosure rate, with one in every 56 housing units receiving a foreclosure filing in July — more than six times the national average. Initial default notices (NOD) in Nevada decreased 18 percent from the previous month, likely the result of a new state law requiring lenders to offer mediation to homeowners facing foreclosure. The law took effect July 1. Meanwhile, scheduled auctions (NYSEMKT:NTS) and bank repossessions (REO) in Nevada both increased more than 20 percent from the previous month, boosting overall foreclosure activity in the state by 4 percent on a month-over-month basis.

    Initial defaults (NOD) in California spiked 15 percent from the previous month, and the state registered the nation’s second highest state foreclosure rate for the third month in a row. One in every 123 California housing units received a foreclosure filing in July, nearly three times the national average. Scheduled auctions (NTS) in California were down 1 percent from the previous month, but bank repossessions (REO) were up 4 percent — leaving overall foreclosure activity up nearly 7 percent on a month-over-month basis.

    One in every 135 Arizona housing units received a foreclosure filing in July, the nation’s third highest state foreclosure rate and more than 2.5 times the national average. Scheduled auctions (NTS), the first public record in the Arizona foreclosure process, jumped 25 percent from the previous month while bank repossessions stayed flat.

    Other states with foreclosure rates ranking among the nation’s 10 highest were Florida, Utah, Idaho, Georgia, Illinois, Colorado and Oregon.

    Four states account for more than half of total foreclosure activity

    The top four state foreclosure activity totals in July were reported by California, with 108,104 properties receiving a foreclosure filing; Florida, with 56,486 properties receiving a foreclosure filing; Arizona, with 19,694 properties receiving a foreclosure filing; and Nevada, with 19,535 properties receiving a foreclosure filing. Together these four states accounted for nearly 57 percent of the nation’s total foreclosure activity.

    Although Florida bank repossessions (REO) decreased 8 percent from the previous month, the state’s overall foreclosure activity was still up 7 percent from the previous month because of a 9 percent month-over-month increase in both initial default notices (LIS) and scheduled auctions (NFS).

    Illinois registered the fifth highest state foreclosure activity total, with 14,524 properties receiving a foreclosure filing during the month. Overall foreclosure activity in Illinois increased nearly 35 percent from the previous month, boosted by an 86 percent surge in default notices (LIS), which bounced back from low levels in May and June. A state law enacted April 5 gave delinquent borrowers an extension of up to 90 days before the start of the foreclosure process.

    Other states with totals among the 10 highest in the country were Texas (12,077), Georgia (11,136), Ohio (11,021), Michigan (8,257) and New Jersey (6,467).

    Foreclosure activity in Michigan dropped 39 percent from the previous month, mostly due to a 66 percent decrease in scheduled auctions (NTS. A state law that took effect July 6 requires lenders — before scheduling a foreclosure auction — to provide delinquent borrowers a uniform default notice with contact information for approved housing counselors who can assist in loan modification. The law freezes foreclosure proceedings an extra 90 days for homeowners who commit to work on a loan modification plan.

    Four states dominate top 10 metro foreclosure rates

    Foreclosure filings were reported on 16,798 Las Vegas properties in July, one in every 47 housing units — more than 7.5 times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000. The city’s foreclosure activity increased nearly 6 percent from the previous month and 89 percent from July 2008.

    Seven California metro areas documented foreclosure rates among the top 10 in July. Stockton posted the nation’s second highest metro foreclosure rate — one in every 62 housing units received a foreclosure filing — followed by Modesto at No. 3 (one in 63), Merced at No. 5 (one in 66), Riverside-San Bernardino-Ontario at No. 6 (one in 67), Bakersfield at No. 7 (one in 76), Vallejo-Fairfield at No. 8 (one in 83), and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 105).

    Other cities with top 10 metro foreclosure rates were Cape Coral-Fort Myers, Fla., at No. 4, with one in every 64 housing units receiving a foreclosure filing, and Phoenix-Mesa-Scottsdale, Ariz., at No. 9, with one in every 103 housing units receiving a foreclosure filing.

    Report methodology

    The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the month — broken out by type of filing at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure:
    Default — Notice of Default (NOD) and Lis Pendens (LIS);
    Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and
    Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank).
    If more than one foreclosure document is filed against a property during the month, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

     

     

     

    Properties with Foreclosure Filings

    Rate Rank

    State Name

    NOD

    LIS

    NTS

    NFS

    REO

    Total

    1/every X HU (rate)

    %? from Jun 09

    %? from Jul 08

    --

    U.S.

    62,939

    71,565

    104,830

    33,557

    87,258

    360,149

    355

    6.74

    32.32

    33

    Alabama

    0

    0

    1,630

    0

    452

    2,082

    1,026

    -23.34

    141.25*

    24

    Alaska

    3

    0

    266

    0

    102

    371

    761

    76.67

    79.23

    3

    Arizona

    2

    0

    14,120

    0

    5,572

    19,694

    135

    16.99

    47.52

    21

    Arkansas

    104

    0

    1,319

    0

    828

    2,251

    572

    35.03*

    110.77*

    2

    California

    50,917

    0

    35,802

    0

    21,385

    108,104

    123

    6.99

    49.55

    9

    Colorado

    5

    0

    3,947

    0

    1,536

    5,488

    388

    -4.12

    2.08

    29

    Connecticut

    0

    1,084

    0

    190

    295

    1,569

    917

    7.84

    -22.10

    37

    Delaware

    0

    0

    0

    226

    72

    298

    1304

    -12.61

    125.76

     

    District of Columbia

    267

    0

    219

    0

    35

    521

    546

    24.94

    -6.80

    4

    Florida

    0

    35,227

    0

    14,502

    6,757

    56,486

    154

    6.78

    23.11

    7

    Georgia

    1

    0

    7,616

    0

    3,519

    11,136

    356

    -20.59

    10.68

    15

    Hawaii

    186

    0

    481

    0

    323

    990

    512

    40.23

    332.31

    6

    Idaho

    1,290

    0

    1,051

    0

    150

    2,491

    253

    32.43*

    166.13*

    8

    Illinois

    0

    6,770

    0

    4,060

    3,694

    14,524

    361

    34.53

    62.92

    17

    Indiana

    0

    1,015

    0

    1,881

    2,290

    5,186

    536

    -6.86

    8.43

    43

    Iowa

    0

    0

    227

    0

    374

    601

    2,212

    7.32

    20.68

    30

    Kansas

    0

    183

    0

    408

    728

    1,319

    925

    37.68

    94.83

    39

    Kentucky

    0

    405

    0

    488

    341

    1,234

    1,545

    9.30

    0.65

    40

    Louisiana

    0

    6

    0

    928

    183

    1,117

    1,664

    -23.07

    9.83

    41

    Maine

    0

    138

    0

    212

    57

    407

    1,712

    39.38

    59.61

    11

    Maryland

    0

    3,521

    0

    633

    998

    5,152

    450

    66.19

    65.98

    16

    Massachusetts

    0

    3,548

    0

    1,049

    517

    5,114

    532

    58.77

    43.09

    19

    Michigan

    1

    0

    2,695

    0

    5,561

    8,257

    548

    -39.32

    -28.76

    20

    Minnesota

    12

    0

    2,266

    0

    1,847

    4,125

    559

    23.80

    146.86

    45

    Mississippi

    0

    0

    354

    0

    124

    478

    2,625

    -36.69

    151.58*

    27

    Missouri

    5

    0

    1,729

    0

    1,441

    3,175

    834

    2.02

    -9.60†

    47

    Montana

    0

    0

    2

    0

    88

    90

    4,839

    45.16

    -36.62

    46

    Nebraska

    0

    164

    0

    5

    26

    195

    4,004

    30.87

    -70.45

    1

    Nevada

    7,139

    0

    7,833

    0

    4,563

    19,535

    56

    4.11

    94.18

    31

    New Hampshire

    0

    0

    611

    0

    12

    623

    954

    42.24

    -31.01

    18

    New Jersey

    0

    4,210

    0

    1,505

    752

    6,467

    541

    49.25

    39.92

    32

    New Mexico

    0

    479

    0

    270

    128

    877

    983

    23.52

    61.21*

    38

    New York

    0

    4,613

    0

    871

    470

    5,954

    1,334

    22.76

    -3.45

    36

    North Carolina

    1,120

    0

    756

    0

    1,552

    3,428

    1,203

    7.97

    -20.33

    48

    North Dakota

    0

    1

    0

    26

    23

    50

    6,211

    56.25

    -23.08

    12

    Ohio

    0

    5,062

    0

    3,032

    2,927

    11,021

    460

    -2.05

    -18.10

    35

    Oklahoma

    595

    0

    522

    0

    420

    1,537

    1,056

    18.69

    -11.05

    10

    Oregon

    29

    0

    2,463

    0

    1,113

    3,605

    446

    15.80

    84.40

    34

    Pennsylvania

    0

    1,869

    0

    1,805

    1,642

    5,316

    1,030

    7.59

    27.36*

    28

    Rhode Island

    0

    0

    17

    0

    488

    505

    893

    -44.63

    2.23

    26

    South Carolina

    0

    1,209

    0

    484

    735

    2,428

    833

    44.01

    82.15*

    42

    South Dakota

    0

    60

    0

    56

    48

    164

    2,178

    45.13

    446.67*

    22

    Tennessee

    0

    0

    2,263

    0

    2,309

    4,572

    596

    -2.20

    0.15††

    25

    Texas

    24

    0

    7,194

    0

    4,859

    12,077

    781

    0.45

    16.64

    5

    Utah

    1,234

    0

    1,728

    0

    732

    3,694

    250

    6.42

    93.30

    50

    Vermont

    0

    0

    0

    0

    11

    11

    28,312

    0.00

    120.00

    14

    Virginia

    5

    0

    3,927

    0

    2,474

    6,406

    511

    23.48

    11.51†

    13

    Washington

    0

    0

    3,632

    0

    1,738

    5,370

    511

    14.79

    94.42*

    49

    West Virginia

    0

    0

    119

    0

    20

    139

    6,350

    21.93

    265.79

    23

    Wisconsin

    0

    2,001

    0

    926

    890

    3,817

    671

    8.10

    86.74*

    44

    Wyoming

    0

    0

    41

    0

    57

    98

    2,473

    16.67

    -26.32

    * Actual increase may not be as high due to data collection changes or improvements
    † Collection of some records previously classified as NOD in this state was discontinued starting in January 2009
    † Collection of some records previously classified as NOD in this state was discontinued starting in September 2008

    U.S. Foreclosure Rates Heat Map – July 2009

     

    U.S. Foreclosure Market Data by State – July 2009

     

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