RealtyTrac's latest U.S. Foreclosure Market Report shows that foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 343,638 properties in September – a 4% drop from the previous month but a 29% increase from September 2008.
Despite the monthly decrease, September's total was still the third-highest monthly total since the RealtyTrac report began in January 2005, behind only July and August of this year.
The report also indicated that 937,840 properties received a foreclosure filing 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.
The number of real estate owned (REO) properties jumped 21% from the second quarter, which corresponds to jumps in defaults and scheduled auctions in the previous two quarters, CEO James J. Saccacio notes.
Â "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," he says.
REO activity in Nevada, home to the nation's highest state foreclosure rate in the third quarter, increased 29% from the previous quarter. Scheduled auctions in the state increased 26% from the previous quarter, but defaults decreased 8% from the previous quarter.
California REOs increased 12% during the quarter, while Flroida's REO activity grew 12%.