RealtyTrac annual report: U.S foreclosure activity increases 81 percent in 2008MortgagePress.comRealtyTrac, foreclosures, foreclosure properties, 2008 U.S. Foreclosure Market Report
RealtyTrac, an online marketplace for foreclosure properties,
has released its 2008 U.S. Foreclosure Market Report, which shows a
total of 3,157,806 foreclosure filings--default notices, auction
sale notices and bank repossessions--were reported on 2,330,483
U.S. properties during the year, an 81 percent increase in total
properties from 2007 and a 225 percent increase in total properties
from 2006. The report also shows that 1.84 percent of all U.S.
housing units (one in 54) received at least one foreclosure filing
during the year, up from 1.03 percent in 2007.
Foreclosure filings were reported on 303,410 U.S. properties in
December, up 17 percent from the previous month and up nearly 41
percent from December 2007. Despite the spike in December,
foreclosure activity for the fourth quarter was down nearly 4
percent from the previous quarter but still up nearly 40 percent
from the fourth quarter of 2007.
RealtyTrac publishes the largest and most comprehensive national
database of foreclosure and bank-owned properties, with over 1.5
million properties from over 2,200 counties across the country, and
is the foreclosure data provider to MSN Real Estate, Yahoo! Real
Estate and The Wall Street Journal's Real Estate
Journal.
"State legislation that slowed down the onset of new foreclosure
activity clearly had an effect on fourth quarter numbers overall,
but that effect appears to have worn off by December," said James
J. Saccacio, chief executive officer of RealtyTrac. "The big jump
in December foreclosure activity was somewhat surprising given the
moratoria enacted by both Freddie Mac and Fannie Mae, along with
programs from some of the major lenders and loan servicers aimed at
delaying foreclosure actions against distressed homeowners.
"Clearly the foreclosure prevention programs implemented to-date
have not had any real success in slowing down this foreclosure
tsunami. And the recent California law, much like its predecessors
in Massachusetts and Maryland, appears to have done little more
than delay the inevitable foreclosure proceedings for thousands of
homeowners."
The California law (SB1137), which required lenders to provide
written notice of their intent to initiate foreclosure proceedings
30 days prior to issuing a notice of default (NOD), resulted in a
reduction of NODs from 44,278 in August to 21,665 in September.
Notice of Default filings then surged by 122 percent, to over
42,000, in December. Similar patterns have occurred in other
states, such as Massachusetts and Maryland, where similar types of
foreclosure prevention legislation has been enacted.
Nevada, Florida, Arizona post top state foreclosure
rates in 2008
More than seven percent of Nevada housing units (one in 14)
received at least one foreclosure notice in 2008, giving it the
nation's highest state foreclosure rate for the year. A total of
77,693 Nevada properties received a foreclosure filing during the
year, an increase of nearly 126 percent from 2007 and an increase
of nearly 530 percent from 2006.
Florida registered the nation's second highest state foreclosure
rate in 2008, with 4.52 percent of its housing units (one in 22)
receiving at least one foreclosure filing during the year, and
Arizona registered the nations third highest state foreclosure
rate, with 4.49 percent of its housing units (one in 22) receiving
at least one foreclosure filing during the year.
Other states with Top 10 foreclosure rates for 2008 were
California, Colorado, Michigan, Ohio, Georgia, Illinois and New
Jersey.
California, Florida, Arizona post highest 2008
foreclosure totals
A total of 523,624 California properties received a foreclosure
filing in 2008, the nations highest state total. Foreclosure
activity in the state increased nearly 110 percent from 2007 and
nearly 498 percent from 2006.
With 385,309 properties receiving a foreclosure filing in 2008,
Florida documented the second highest state total. Florida
foreclosure activity increased 133 percent from 2007 and nearly 412
percent from 2006.
Arizona's 2008 total of 116,911 properties receiving a
foreclosure filing was third highest among the states. Foreclosure
activity in Arizona increased 203 percent from 2007 and 655 percent
from 2006.
Other states with Top 10 totals for 2008 were Ohio, Michigan,
Illinois, Texas, Georgia, Nevada and New Jersey.
Sunbelt cities plus Detroit land on top 10 metro
foreclosure rates list
With 9.46 percent of its housing units (one in 11) receiving a
foreclosure filing during the year, Stockton, Calif., registered
the highest foreclosure rate among the nations 100 largest
metropolitan areas in 2008. Other California cities in the top 10
were Riverside-San Bernardino at No. 3 (8.02 percent, or one in 12
housing units); Bakersfield and No. 4 (6.17 percent, or one in 16
housing units); and Sacramento at No. 9 (5.20 percent, or one in 19
housing units).
Las Vegas documented the second highest metro foreclosure rate
in 2008, with 8.89 percent of its housing units (one in 11)
receiving a foreclosure filing during the year.
More than six percent of Phoenix housing units (one in 17)
received a foreclosure filing during the year, giving the city the
fifth highest metro foreclosure rate in 2008.
The foreclosure rate in Fort Lauderdale, Fla., ranked No. 6,
with 5.95 percent of the metro areas housing units (one in 17)
receiving a foreclosure filing in 2008. Other Florida cities in the
top 10 were Orlando at No. 7 (5.48 percent, or one in 18 housing
units) and Miami at No. 8 (5.21 percent, or one in 19 housing
units).
With 4.52 percent of its housing units (one in 22) receiving a
foreclosure filing during the year, Detroit registered the tenth
highest metro foreclosure rate in 2008.
For more information, visit www.realtytrac.com.
