Big Upswing in Foreclosure Activity

National foreclosure filings, including default notices, scheduled auctions, and bank repossessions, rose 7 percent in August compared to the previous month, but they remain 9 percent below year-ago levels, RealtyTrac reports in its latest Foreclosure Market Report. It marks the smallest year-over-year decrease in foreclosure activity in the last 47 consecutive months.

One problem with foreclosure backlogs: ‘zombie’ foreclosures.

“The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets,” says Daren Blomquist, vice president at RealtyTrac. “The annual increase in foreclosure auctions — the first since the robo-signing controversy rocked the foreclosure industry back in late 2010 — indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both.”

Scheduled foreclosure auctions were up in 24 states from year-ago levels, led by Colorado (up 160%); Oregon (117%); Connecticut (81%); and New York (81%), according to the latest report.

Also, more properties started the foreclosure process in August than July, up 12 percent month-over-month and flat when compared to last year’s levels, according to RealtyTrac.

Foreclosure starts rose from a year ago in 19 states, including Oklahoma (up 147%); Indiana (136%); New Jersey (115%); Massachusetts (55%); Florida (24%); and Maryland (20%).

The following metros (with populations of 200,000 or more) had the highest foreclosure rates in August year-over-year:

  1. Macon, Ga.
  2. Atlantic City, N.J.
  3. Orlando, Fla.
  4. Jacksonville, Fla.
  5. Miami
  6. Palm Bay-Melbourne-Titusville, Fla.
  7. Tampa, Fla.
  8. Pensacola, Fla.
  9. Cape Coral-Fort Myers, Fla.
  10. Lakeland, Fla.

Daily Real Estate News | Thursday, September 11, 2014 –

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