Foreclosures Increase

According to RealtyTrac® (RT) its U.S. Foreclosure Market Report™ for July
2013, reveals that foreclosure filings increased 2 percent in July from the
previous month.


For July foreclosure filings (which include default notices, scheduled auctions
and bank repossessions) were reported on 130,888 properties in the U.S. These
filings were a slight increase over June, which then was at a 78-month low, but
July’s numbers are still 32 percent lower than in July of 2012. The report also
shows one in every 1,001 U.S. housing units with a foreclosure filing during the
month RT attributes the increase in foreclosure activity as being driven by a 6 percent
increase in monthly foreclosure starts along with a 4 percent increase in bank
repossessions (REOs). Both foreclosure starts and bank repossessions were
lower than one year ago.


Daren Blomquist, vice president of RealtyTrac, states that, “While foreclosures
are continuing to boil over in a select group of markets where state legislation
and court rulings kept a lid on foreclosure activity during the worst of the housing
crisis, the foreclosure boil-over markets are becoming fewer and farther between
as lenders have caught up with the backlog of delayed foreclosures in some of
the states with the more lengthy judicial foreclosure process.”


In spite of the slight increase last month U.S. foreclosure activity during July was
64 percent below the peak in March of 2010 when there were more than 367,000
properties with foreclosure filings. However, though current figures are well
below those seen at the peak in 2010, they are “still 54 percent above the
historical average of 85,000 properties with foreclosure filings per month before
the housing bubble burst in late 2006,” says Blomquist, and he adds that, “There
are a dozen states, however, where foreclosure activity levels in July were at or
below average monthly levels prior to the bubble bursting. Those states include
Texas, Colorado, Oklahoma, Indiana and Michigan, and we expect the number of
states in this category to increase in the coming months.”

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