Apr 23 2009
Foreclosure Trends Update RealtyTrac April 23, 2009


RealtyTrac

Foreclosures are the fastest growing sector of the real estate market. And, RealtyTrac is the #1 source for foreclosure data in the country. Consumers are interested in foreclosure information – an extremely hot topic that everyone is talking about – but you can rest assured that the content we provide is the most trusted, real-time dynamic data available. Enjoy seamless integration with the content we provide, enticing them to stay longer – and come back more often.

“RealtyTrac released its U.S. Foreclosure Market Report™ for Q1 2009, which shows that foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 803,489 properties in the first quarter, a 9 percent increase from the previous quarter and an increase of nearly 24 percent from Q1 2008. One in every 159 U.S. housing units received a foreclosure filing during the quarter.”

Foreclosure filings were reported on 341,180 properties in March, a 17 percent increase from
the previous month and a 46 percent increase from March 2008. The March and Q1 2009
totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report
in January 2005 despite a decrease in bank repossessions (REOs), which were down 13
percent from the fourth quarter of 2008 and 3 percent from February totals.

“In the month of March we saw a record level of foreclosure activity — the number of
households that received a foreclosure filing was more than 12 percent higher than the next
highest month on record. Since much of this activity was in new foreclosure actions, it
suggests that many lenders and servicers were holding off on executing foreclosures due to
industry moratoria and legislative delays,” said James J. Saccacio, chief executive officer of
RealtyTrac. “It’s also likely that the drop in REO activity can be attributed to these processing
delays, rather than to any of the foreclosure prevention programs currently in place. It’s very
likely that we’ll see the number of REOs increase again now that most of the moratoria have
been lifted.”

“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly
on bank-owned REO properties that first time homebuyers and investors see as bargains,”
Saccacio continued. “But it’s unlikely that this increased demand will be enough to offset the
growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”

With the foreclosure market gaining speed and the recent announcement that Fannie revised investment property guidelines by loosening its loan restrictions for real estate investors and second homebuyers last week.

Article of the Month:
RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for Q1 2009, which shows that foreclosure filings — default notices, auction sale notices and bank
repossessions — were reported on 803,489 properties in the first quarter, a 9 percent increase from the previous quarter and an increase of nearly 24 percent from Q1 2008. One in every
159 U.S. housing units received a foreclosure filing during the quarter.
Foreclosure filings were reported on 341,180 properties in March, a 17 percent increase from the previous month and a 46 percent increase from March 2008. The March and Q1 2009
totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005 despite a decrease in bank repossessions (REOs), which were down 13 percent from the fourth quarter of 2008 and 3 percent from February totals.
“In the month of March we saw a record level of foreclosure activity — the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record. Since much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays,” said James J. Saccacio, chief executive officer of
RealtyTrac. “It’s also likely that the drop in REO activity can be attributed to these processing delays, rather than to any of the foreclosure prevention programs currently in place. It’s very
likely that we’ll see the number of REOs increase again now that most of the moratoria have been lifted.”
“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,”
Saccacio continued. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”
RealtyTrac (www.realtytrac.com) is the leading online marketplace of foreclosure properties, with more than 1.5 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures.

Tip of the Month:

It’s a big season for foreclosures. And we’ve collected some stats and information that you’ll find very helpful. Read more about this in our press release or on our blog.

National numbers

  • A total of 341,180 foreclosure filings were reported nationwide in March
  • Foreclosure activity increased 46 percent from March 2008
  • The foreclosure rate was one foreclosure filing for every 159 households during Q1

State highlights

Nevada, Arizona, California post top state foreclosure rates in first quarter:

  • Nevada continued to document the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing — more than five times the national average. Foreclosure filings were reported on 41,296 Nevada properties during the quarter, an increase of 19 percent from the previous quarter and an increase of nearly 111 percent from Q1 2008. Bank repossessions in Nevada were down 3 percent from the previous quarter, but defaults increased 27 percent and auction sale notices increased 35 percent.
  • Arizona posted the nation’s second highest state foreclosure rate for the first quarter, with one
    in every 54 housing units receiving a foreclosure filing, and
  • California posted the nation’s third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.
  • Other states with foreclosure rates ranking among the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.

Five states account for nearly 60 percent of nation’s first quarter total:

  • California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of the nation’s
    foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in
    the five states combined.
  • With 230,915 properties receiving foreclosure filings during the quarter, California accounted
    for nearly 29 percent of the nation’s total. The state’s foreclosure activity increased 35 percent from the previous quarter and 36 percent from Q1 2008, and the first-quarter total was state’s highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.
  • Despite a 12 percent decrease from the previous quarter, Florida’s first quarter total was still second highest in the nation. Foreclosure filings were reported on 119,220 Florida properties,
    a 36 percent increase from the first quarter of 2008. The state posted the nation’s fourth
    highest state foreclosure rate during the quarter, with one in every 73 housing units receiving
    a foreclosure filing.
  • Foreclosure filings were reported on 49,119 Arizona properties in the first quarter of 2009, the
    third highest total among the states, and 41,296 Nevada properties received a foreclosure
    filing in the first quarter of 2009, the fourth highest total among the states.
  • Illinois posted the nation’s fifth highest total, with 38,966 properties receiving a foreclosure
    filing during the first quarter — a 32 percent increase from the previous quarter and a 68
    percent increase from the first quarter of 2008. With one in every 135 housing units receiving
    a foreclosure filing, the state’s foreclosure rate also ranked fifth highest among the states.
  • Rounding out the states with the 10 highest foreclosure activity totals in Q1 2009 were Michigan, Ohio, Georgia, Texas and Virginia.
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