Foreclosure Filings Dropped Slightly In August

Foreclosure filings in August decreased by less than 1% from July, as default notices, scheduled auctions and bank repossessions were reported on 358,471 properties during the month, RealtyTrac reports.

One in every 357 U.S. housing units received a foreclosure filing in August.

‘The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline, even while the outflow of bank-owned REO properties onto the resale market is being more carefully regulated," says James J. Saccacio, RealtyTrac's CEO. "After hitting a high for the year in July, REOs dropped 13 percent in August, but we also saw a record high number of properties either entering default or being scheduled for a public foreclosure auction for the first time."

Nevada documented the nation's highest state foreclosure rate, with one in every 62 units receiving a filing. That's an 8% decrease in foreclosure activity from July. Florida held the second-highest foreclosure rate (one in every 140 units), and California overtook Arizona for the third-highest rate (one in every 144 units).

A 10% month-to-month decrease in activity helped lower Arizona's foreclosure rate to fourth highest, with one in every 150 Arizona housing units receiving a filing in August.

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

Six states accounted for 62% of the nation's total foreclosure activity in August, despite decreasing REOs in all six states. California REOs dropped 32% from the previous month, but the state continued to post the highest overall total of any state, with 92,326 properties receiving a foreclosure filing in August.

California's total was down 15% from the previous month and was also down 9% from August 2008 – the first year-over-year decrease in California foreclosure activity in RealtyTrac's monthly reports.

A total of 62,401 Florida properties received foreclosure filings in August, the nation's second highest state total and an increase of more than 10% from the previous month despite a 5% decrease in REO filings. Initial default notices in Florida increased 12% from the previous month, and scheduled auctions increased 13% from the previous month.

A new law in Michigan requiring lenders to file a separate public notice of default before scheduling a foreclosure auction boosted overall foreclosure activity numbers in the state for August. A total of 9,789 of the new default notices were reported in August, bringing the total number of Michigan properties receiving foreclosure filings to 19,359 for the month – a 134% spike from the previous month and the third-highest among the states. Michigan's foreclosure rate leapfrogged from 19th highest in July to fifth-highest in August.

With 17,902 properties receiving foreclosure filings in August, Nevada posted the nation's fourth-highest total, despite a 24% decrease in REO filings from the previous month, and with 17,807 properties receiving foreclosure filings in August, Arizona posted the nation's fifth-highest total, despite an 11% decrease in REO filings from the previous month.

Illinois REO filings decreased 15% from the previous month, but the state's total of 13,078 properties receiving foreclosure filings was still the sixth-highest among all the states in August.

Other states with totals among the 10 highest in the country were Georgia (11,947), Ohio (11,368), Texas (11,261) and New Jersey (8,316).

SOURCE: RealtyTrac

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