Foreclosure filings by banks jump to a 19-month high

Foreclosure filings were reported on 126,868 U.S. properties in May 2015, up one percent from the previous month but up 16 percent from a year ago to a 19-month high, according to a new report from RealtyTrac.

The U.S. foreclosure rate in May was one in every 1,041 housing units with a foreclosure filing.

The increase in May was driven primarily by a jump in bank repossessions (REOs). At 44,892, these were down one percent from the previous month but up 58 percent from a year ago. It was also a five percent year-over-year increase in scheduled foreclosure auctions.

Daren Blomquist

“May foreclosure numbers are a classic good news-bad news scenario, with the number of homeowners starting the foreclosure process stabilizing at pre-housing crisis levels. But, the number of homeowners actually losing their homes to foreclosure is still well above pre-crisis levels and on the rise,” Daren Blomquist, vice president at RealtyTrac, said in the release.

“Lenders and courts are pushing through stubborn foreclosure cases that have been languishing in foreclosure limbo for years as options to prevent foreclosure are exhausted or left untapped.”

Foreclosure starts up annually for the first time in four months

A total of 51,414 U.S. properties started the foreclosure process for the first time in May 2015.

This was down 1 percent from the previous month but up 4 percent from a year ago.

This  after four consecutive months of year-over-year decreases. Despite the increase, U.S. foreclosure starts are still below pre-crisis levels from 2005 and 2006.

Then, they averaged 52,279 a month before the housing price bubble burst in August 2006.

 

Twenty-five states posted year-over-year increases in foreclosure starts:

• New Jersey (up 73 percent)
• Virginia (up 39 percent)
• Missouri (up 19 percent)
• Massachusetts (up 14 percent)
• Washington (up 11 percent)

Scheduled auctions are 40 percent higher than pre-crisis levels

A total of 49,413 properties in May were scheduled for a future foreclosure auction (scheduled foreclosure auctions are foreclosure starts in some states). This is up 6 percent from the previous month and up 5 percent from a year ago. U.S. scheduled foreclosure auctions so far this year are running about 40 percent higher than their pre-crisis levels from 2005 and 2006.

Twenty-six states posted increases in scheduled foreclosure auctions from a year ago:

• New York (up 118 percent)
• Illinois (up 23 percent)
• New Jersey (up 22 percent)
• Maryland (up 11 percent).

Florida posts the nation’s highest foreclosure rate for the third consecutive month

Driven by a 63 percent annual increase in REOs, overall foreclosure activity in Florida increased 4 percent from the previous month and was up 7 percent from a year ago in May. The state’s foreclosure rate ranked No. 1 for the month with one in every 409 housing units with a foreclosure filing.

Other states with foreclosure rates among the top 10 highest nationwide:

• New Jersey (one in every 483 housing units with a foreclosure filing)
• Maryland (one in every 531 housing units)
• Nevada (one in every 590 housing units)
• Ohio (one in every 763 housing units)
• Illinois (one in every 765 housing units)
• Indiana (one in every 963 housing units)
• South Carolina (one in every 987 housing units)

13 out of the 20 largest metros posted annual increases in foreclosure activity

Among the nation’s 20 largest metropolitan statistical areas, 13 posted an annual increase in foreclosure activity in May.

• Dallas (up 64 percent)
• St. Louis (up 56 percent)
• Baltimore (up 35 percent)
• New York (up 34 percent)
• Philadelphia (up 28 percent)
• Atlanta (up 27 percent)
• Detroit (up 27 percent)
• San Francisco (up 25 percent)
• Houston (up 18 percent)
• Miami (up 17 percent)
• Seattle (up 10 percent from a year ago).