Nov. foreclosures decline — but is it a blip?

Foreclosure activity declined in November to its lowest level since June; however, industry experts caution that the downtick may a short-term blip rather than the start of a trend.

Foreclosure activity declined in November to its lowest level since June; however, industry experts caution that the downtick may a short-term blip rather than the start of a trend.
A report released today by RealtyTrac Inc. of Irvine, Calif., stated that the number of properties receiving foreclosure filings — which include default notices, auction sale letters and bank repossessions — stood at 259,085 properties in November, down 7% from September but up 28% from the same month a year ago.
This equates to one in every 488 homes’ receiving a foreclosure notice in November.
The month-over-month decline was largely due to certain states’ passing laws mandating waiting periods before lenders can foreclose on a property, an increase in loan modification programs and a decision by some lenders to offer holiday foreclosure moratoriums.
“There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months,” James J. Saccacio, chief executive of RealtyTrac, said in a statement.
Indeed, delinquencies on loans not yet in foreclosure jumped almost 7% in the third quarter, according to the Mortgage Bankers Association of Washington.
“And more than half of the homeowners who received loan modifications to reduce monthly mortgage payments in the first half of 2008 are already delinquent on their loans again, according to the U.S. Office of Thrift Supervision,” Mr. Saccacio noted.
Nevada, Florida and Arizona continue to top the list of the states with the highest foreclosure rates.
Nevada reported 13,962 foreclosure filings in November, up 109% from a year earlier. This means one in every 76 units received a foreclosure filing in November — which is more than six times the national average.
Florida posted the second-highest foreclosure rate, with one in every 173 homes getting a foreclosure notice, while Arizona ranked third, with one in every 198 homes receiving a foreclosure filing last month.
Other states with the highest foreclosure rates were California, Michigan, Georgia, Ohio, Colorado, Utah and Idaho.
The city with the highest foreclosure rate in November was Cape Coral-Fort Myers, Fla., where one in every 59 homes received a foreclosure notice.
Others include Fort Lauderdale, Fla.; Port Lucie-Fort Pierce, Fla.; Las Vegas; and a number of California markets, including Merced, Stockton, Riverside-San Bernardino, Bakersfield, and Vallejo-Fairfield.