Mortgage

Foreclosures skyrocket in Northeast, West Coast

Nationwide foreclosure activity lowest since December 2006

Foreclosures of all types were filed on 109,824 residential properties in May, a 5% decrease from the previous month and a 26% decrease from May 2013, which brought it to the lowest monthly level since the early days of the housing bubble and crash in December 2006.

The quick read – Northeastern and West Coast markets are having the most trouble with rising foreclosure activity, along with Chicago. The healthiest markets are in the flyover states, the sand states and the Sunbelt. Florida is still healing but still hurting.

The monthly RealtyTrac report also shows one in every 1,199 U.S. housing units with a foreclosure filing during the month.

Foreclosure activity recorded includes all default notices, scheduled auction and bank repossessions.

Despite the decrease in overall foreclosure activity nationwide, 21 states posted monthly increases in overall foreclosure activity, and 11 states posted annual increases in foreclosure activity.

The four major metros with the biggest increases are all northeastern and seaboard cities – Boston, New York City, Washington D.C, and Philadelphia. Boston increased 44%, New York 23%, and Washington D.C. and Philadelphia both 15% year-over-year.

“It’s not surprising that some of the states with the longest foreclosure timelines are those with markets still dealing with increasing foreclosure activity even as the country as a whole continues to hit new lows,” said Daren Blomquist, vice president at RealtyTrac. “On the other hand, the increase in bank repossessions in some states with shorter foreclosure timelines like California and Oregon demonstrates there is still some pent-up foreclosure activity in those states as well.”

States with annual increases in foreclosure activity included Massachusetts: up 58% from a year ago to an 18-month high; New Jersey: up 37% from a year ago, making May the 23rd month out of the last 27 where New Jersey foreclosure activity has increased annually; New York: up 18% from a year ago to a 14-month high; and Indiana: up 12% from a year ago, marking the third consecutive month with an annual increase.

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Bank repossessions were at lowest level since July 2007, up only in New York, New Jersey, Connecticut, Maryland, Oregon, and California.

Lenders repossessed 28,373 U.S. properties in May, down 6% from the previous month and down 27% from May 2013 to the lowest monthly level since July 2007 — an 82-month low.

Despite the decrease nationally, bank repossessions increased from the previous month in 25 states and were up from a year ago in 14 states, including the following:

  • New York: up 117%, the 16th month out of the last 20 with an annual increase
  • New Jersey: up 96%, the 11th of the last 12 months with an annual increase 
  • Connecticut: up 85%, the 15th consecutive month with an annual increase 
  • Maryland: up 40%, the 15th consecutive month with an annual increase
  • Oregon: up 29%, the sixth consecutive month with an annual increase 
  • California: up 26%, the second consecutive month with an annual increase after 28 consecutive months with annual decreases
  • Illinois: up 20%, the second consecutive month with an annual increase after 12 consecutive months with annual decreases.

Lenders scheduled foreclosure auctions for 47,085 U.S. properties in May, down 4% from the previous month and down 22% from a year ago to the lowest level since December 2006 — an 89-month low.

Despite the national decrease, scheduled foreclosure auctions increased from the previous month in 27 states and was up from a year ago in 16 states.

Lenders started the public foreclosure process on 49,240 U.S. properties in May, down 10% from the previous month and down 32% from a year ago to the lowest level since December 2005 — a 101-month low.

Despite the national decrease, foreclosure starts — which can be the scheduled public foreclosure auction in some states — increased from the previous month in 17 states and was up from a year ago in 12 states reaching record highs, including the following:

  • Massachusetts: up 178% to a 15-month high
  • Indiana: up 67%, marking the third consecutive month with an annual increase
  • Delaware: up 26%, the 12th out of the last 15 months with an annual increase
  • New Jersey: up 15%, the 25th out of the last 27 months with an annual increase
  • New York: up 14% to a 14-month high

Florida foreclosure activity decreased 30% on a year-over-year basis in May — the 10th consecutive month with an annual increase — but the state still posted the nation’s highest state foreclosure rate for the eighth consecutive month. One in every 436 Florida housing units had a foreclosure filing in May, nearly three times the national average.

Florida accounted for the eight highest foreclosure rates among metropolitan statistical areas with a population of 200,000 or more, led by Palm Bay-Melbourne-Titusville at No. 1, with one in every 303 housing units with a foreclosure filing — nearly four times the national average.

 The other Florida cities in the top 10 were Deltona-Daytona Beach-Ormond Beach at No. 2 (one in every 314 housing units with a foreclosure filing); Orlando-Kissimmee at No. 3 (one in every 336 housing units); Lakeland at No. 4 (one in every 379 housing units); Port St. Lucie at No. 5 (one every 381 housing units); Ocala at No. 6 (one in every 384 housing units); Tampa-St. Petersburg-Clearwater at No. 7 (one in every 386 housing units); and Miami-Fort Lauderdale-Pompano Beach at No. 8 (one in every 405 housing units). 

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