Foreclosure Starts Down 8% in August to 8-Year Low

Foreclosure Starts Down 8% in August to 8-Year Low A decrease in overall foreclosure activity in August was driven largely by falling foreclosure starts, with proceedings initiated on a total of 55,775 U.S. properties, down 44 percent from a year ago to the lowest level since December 2005, according to RealtyTrac’s monthly report out Thursday.
On a year-over-year basis, however, some states are seeing sharp movements  up or down in foreclosure starts. Florida saw a drop of 43 Percent in Florida, while Nevada jumped 226 Percent.
Foreclosure filings — including default notices, scheduled auctions and bank repossessions — were reported on 128,560  properties in August, a decrease of 2 percent from the previous month and down 34 percent from August 2012.
That’s the 35th consecutive month where foreclosure activity has decreased on an annual basis.
Nevada’s foreclosure rate ranked highest nationwide, supplanting Florida at the No. 1 spot. Florida’s foreclosure rate fell to second highest, followed by Ohio, Maryland and Delaware.
Florida cities accounted for six of the 10 highest metropolitan foreclosure rates, down from nine of the top 10 in the previous month. Also in the top 10 metro foreclosure rates were Las Vegas and three Ohio cities: Toledo, Cleveland and Akron.
“The foreclosure floodwaters have receded in most parts of the country, but lenders and communities continue to clean up the damage left behind, which means the recent uptick in bank repossessions is a trend that will likely continue into next year,” said Daren Blomquist, vice president at RealtyTrac.
Meanwhile, foreclosure starts are quickly being pushed into the pipeline in many communities after months of delay, he added. “This was the case with the jump in Nevada foreclosure starts in August,” Blomquist said.
Foreclosure starts in August decreased from a year ago in 38 states, including both non-judicial states such as Colorado (down 80 percent), Arizona (down 65 percent), Washington (down 65 percent), California (down 57 percent), and Michigan (down 55 percent) — and also judicial states such as Illinois (down 66 percent), Massachusetts (down 66 percent), Florida (down 65 percent), Indiana (down 43 percent), and Wisconsin (down 39 percent).
Foreclosure starts did increase from the previous month in 17 states, including Nevada (up 226 percent), Ohio (up 44 percent), Maryland (up 24 percent), California (up 12 percent), and New York (up 8 percent).
Foreclosure starts did increase from the previous month in 17 states, including Nevada (up 226 percent), Ohio (up 44 percent), Maryland (up 24 percent), California (up 12 percent), and New York (up 8 percent).
Bank repossessions (REO) in August increased 6 percent from the previous month but were still down 25 percent from a year ago. REO activity nationwide has increased on a month-to-month basis in three of the last four months, reaching a five-month high in August.
REO activity increased from the previous month in 26 states and was up from a year ago in 23 states, including New York (up 123 percent to a 34-month high), New Jersey (up 63 percent to a 31-month high), Florida (up 48 percent to a seven-month high), Ohio (up 46 percent to an eight-month high), and Indiana (up 41 percent to a 9-month high).

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