Vermont still lowest foreclosure rate as US filings set record

Vermont continues to have by far the lowest foreclosure rate in the nation, more than four times lower than the next best state. RealtyTrac(R) (www.realtytrac.com), the leading online marketplace for foreclosure properties, has released its July 2009 U.S. Foreclosure Market Report, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 360,149 U.S. properties during the month, an increase of nearly 7 percent from the previous month and an increase of 32 percent from July 2008. The report also shows that one in every 355 U.S. housing units received a foreclosure filing in July.
"July marks the third time in the last five months where we've seen a new record set for foreclosure activity," noted James J. Saccacio, chief executive officer of RealtyTrac. "Despite continued efforts by the federal government and state governments to patch together a safety net for distressed homeowners, we're seeing significant growth in both the initial notices of default and in the bank repossessions."
Nevada, California, Arizona post top state foreclosure rates
For the 31st consecutive month Nevada documented the nation's highest state foreclosure rate, with one in every 56 housing units receiving a foreclosure filing in July -- more than six times the national average. Initial default notices (NOD) in Nevada decreased 18 percent from the previous month, likely the result of a new state law requiring lenders to offer mediation to homeowners facing foreclosure. The law took effect July 1. Meanwhile, scheduled auctions (NTS) and bank repossessions (REO) in Nevada both increased more than 20 percent from the previous month, boosting overall foreclosure activity in the state by 4 percent on a month-over-month basis.
Initial defaults (NOD) in California spiked 15 percent from the previous month, and the state registered the nation's second highest state foreclosure rate for the third month in a row. One in every 123 California housing units received a foreclosure filing in July, nearly three times the national average. Scheduled auctions (NTS) in California were down 1 percent from the previous month, but bank repossessions (REO) were up 4 percent -- leaving overall foreclosure activity up nearly 7 percent on a month-over-month basis.
One in every 135 Arizona housing units received a foreclosure filing in July, the nation's third highest state foreclosure rate and more than 2.5 times the national average. Scheduled auctions (NTS), the first public record in the Arizona foreclosure process, jumped 25 percent from the previous month while bank repossessions stayed flat.
Other states with foreclosure rates ranking among the nation's 10 highest were Florida, Utah, Idaho, Georgia, Illinois, Colorado and Oregon.
Four states account for more than half of total foreclosure activity
The top four state foreclosure activity totals in July were reported by California, with 108,104 properties receiving a foreclosure filing; Florida, with 56,486 properties receiving a foreclosure filing; Arizona, with 19,694 properties receiving a foreclosure filing; and Nevada, with 19,535 properties receiving a foreclosure filing. Together these four states accounted for nearly 57 percent of the nation's total foreclosure activity.
Although Florida bank repossessions (REO) decreased 8 percent from the previous month, the state's overall foreclosure activity was still up 7 percent from the previous month because of a 9 percent month-over-month increase in both initial default notices (LIS) and scheduled auctions (NFS).
Illinois registered the fifth highest state foreclosure activity total, with 14,524 properties receiving a foreclosure filing during the month. Overall foreclosure activity in Illinois increased nearly 35 percent from the previous month, boosted by an 86 percent surge in default notices (LIS), which bounced back from low levels in May and June. A state law enacted April 5 gave delinquent borrowers an extension of up to 90 days before the start of the foreclosure process.
Other states with totals among the 10 highest in the country were Texas (12,077), Georgia (11,136), Ohio (11,021), Michigan (8,257) and New Jersey (6,467).
Foreclosure activity in Michigan dropped 39 percent from the previous month, mostly due to a 66 percent decrease in scheduled auctions (NTS. A state law that took effect July 6 requires lenders -- before scheduling a foreclosure auction -- to provide delinquent borrowers a uniform default notice with contact information for approved housing counselors who can assist in loan modification. The law freezes foreclosure proceedings an extra 90 days for homeowners who commit to work on a loan modification plan.
Four states dominate top 10 metro foreclosure rates
Foreclosure filings were reported on 16,798 Las Vegas properties in July, one in every 47 housing units -- more than 7.5 times the national average and the highest foreclosure rate among metro areas with a population of at least 200,000. The city's foreclosure activity increased nearly 6 percent from the previous month and 89 percent from July 2008.
Seven California metro areas documented foreclosure rates among the top 10 in July. Stockton posted the nation's second highest metro foreclosure rate -- one in every 62 housing units received a foreclosure filing -- followed by Modesto at No. 3 (one in 63), Merced at No. 5 (one in 66), Riverside-San Bernardino-Ontario at No. 6 (one in 67), Bakersfield at No. 7 (one in 76), Vallejo-Fairfield at No. 8 (one in 83), and Sacramento-Arden-Arcade-Roseville at No. 10 (one in 105).
Other cities with top 10 metro foreclosure rates were Cape Coral-Fort Myers, Fla., at No. 4, with one in every 64 housing units receiving a foreclosure filing, and Phoenix-Mesa-Scottsdale, Ariz., at No. 9, with one in every 103 housing units receiving a foreclosure filing.
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the month -- broken out by type of filing at the state and national level. Data is also available at the individual county level. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac's report incorporates documents filed in all three phases of foreclosure: Default -- Notice of Default (NOD) and Lis Pendens (LIS); Auction -- Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the month, only the most recent filing is counted in the report. The report also checks if the same type of document was filed against a property in a previous month. If so, and if that previous filing occurred within the estimated foreclosure timeframe for the state the property is in, the report does not count the property in the current month.

U.S. Foreclosure Market Data by State - July 2009

Properties with Foreclosure Filings
Rate State
Rank Name NOD LIS NTS NFS REO

-- U.S. 62,939 71,565 104,830 33,557 87,258
33 Alabama 0 0 1,630 0 452
24 Alaska 3 0 266 0 102
3 Arizona 2 0 14,120 0 5,572
21 Arkansas 104 0 1,319 0 828
2 California 50,917 0 35,802 0 21,385
9 Colorado 5 0 3,947 0 1,536
29 Connecticut 0 1,084 0 190 295
37 Delaware 0 0 0 226 72
District
of Columbia 267 0 219 0 35
4 Florida 0 35,227 0 14,502 6,757
7 Georgia 1 0 7,616 0 3,519
15 Hawaii 186 0 481 0 323
6 Idaho 1,290 0 1,051 0 150
8 Illinois 0 6,770 0 4,060 3,694
17 Indiana 0 1,015 0 1,881 2,290
43 Iowa 0 0 227 0 374
30 Kansas 0 183 0 408 728
39 Kentucky 0 405 0 488 341
40 Louisiana 0 6 0 928 183
41 Maine 0 138 0 212 57
11 Maryland 0 3,521 0 633 998
16 Massachusetts 0 3,548 0 1,049 517
19 Michigan 1 0 2,695 0 5,561
20 Minnesota 12 0 2,266 0 1,847
45 Mississippi 0 0 354 0 124
27 Missouri 5 0 1,729 0 1,441
47 Montana 0 0 2 0 88
46 Nebraska 0 164 0 5 26
1 Nevada 7,139 0 7,833 0 4,563
31 New Hampshire 0 0 611 0 12
18 New Jersey 0 4,210 0 1,505 752
32 New Mexico 0 479 0 270 128
38 New York 0 4,613 0 871 470
36 North
Carolina 1,120 0 756 0 1,552
48 North Dakota 0 1 0 26 23
12 Ohio 0 5,062 0 3,032 2,927
35 Oklahoma 595 0 522 0 420
10 Oregon 29 0 2,463 0 1,113
34 Pennsylvania 0 1,869 0 1,805 1,642
28 Rhode Island 0 0 17 0 488
26 South Carolina 0 1,209 0 484 735
42 South Dakota 0 60 0 56 48
22 Tennessee 0 0 2,263 0 2,309
25 Texas 24 0 7,194 0 4,859
5 Utah 1,234 0 1,728 0 732
50 Vermont 0 0 0 0 11
14 Virginia 5 0 3,927 0 2,474
13 Washington 0 0 3,632 0 1,738
49 West Virginia 0 0 119 0 20
23 Wisconsin 0 2,001 0 926 890
44 Wyoming 0 0 41 0 57

Properties with Foreclosure Filings

% change % change
Rate State 1/every X from from
Rank Name Total HU (rate) Jun 09 Jul 08

-- U.S. 360,149 355 6.74 32.32
33 Alabama 2,082 1,026 -23.34 141.25*
24 Alaska 371 761 76.67 79.23
3 Arizona 19,694 135 16.99 47.52
21 Arkansas 2,251 572 35.03* 110.77*
2 California 108,104 123 6.99 49.55
9 Colorado 5,488 388 -4.12 2.08
29 Connecticut 1,569 917 7.84 -22.10
37 Delaware 298 1304 -12.61 125.76
District of Columbia 521 546 24.94 -6.80
4 Florida 56,486 154 6.78 23.11
7 Georgia 11,136 356 -20.59 10.68
15 Hawaii 990 512 40.23 332.31
6 Idaho 2,491 253 32.43* 166.13*
8 Illinois 14,524 361 34.53 62.92
17 Indiana 5,186 536 -6.86 8.43
43 Iowa 601 2,212 7.32 20.68
30 Kansas 1,319 925 37.68 94.83
39 Kentucky 1,234 1,545 9.30 0.65
40 Louisiana 1,117 1,664 -23.07 9.83
41 Maine 407 1,712 39.38 59.61
11 Maryland 5,152 450 66.19 65.98
16 Massachusetts 5,114 532 58.77 43.09
19 Michigan 8,257 548 -39.32 -28.76
20 Minnesota 4,125 559 23.80 146.86
45 Mississippi 478 2,625 -36.69 151.58*
27 Missouri 3,175 834 2.02 -9.60+
47 Montana 90 4,839 45.16 -36.62
46 Nebraska 195 4,004 30.87 -70.45
1 Nevada 19,535 56 4.11 94.18
31 New Hampshire 623 954 42.24 -31.01
18 New Jersey 6,467 541 49.25 39.92
32 New Mexico 877 983 23.52 61.21*
38 New York 5,954 1,334 22.76 -3.45
36 North Carolina 3,428 1,203 7.97 -20.33
48 North Dakota 50 6,211 56.25 -23.08
12 Ohio 11,021 460 -2.05 -18.10
35 Oklahoma 1,537 1,056 18.69 -11.05
10 Oregon 3,605 446 15.80 84.40
34 Pennsylvania 5,316 1,030 7.59 27.36*
28 Rhode Island 505 893 -44.63 2.23
26 South Carolina 2,428 833 44.01 82.15*
42 South Dakota 164 2,178 45.13 446.67*
22 Tennessee 4,572 596 -2.20 0.15++
25 Texas 12,077 781 0.45 16.64
5 Utah 3,694 250 6.42 93.30
50 Vermont 11 28,312 0.00 120.00
14 Virginia 6,406 511 23.48 11.51+
13 Washington 5,370 511 14.79 94.42*
49 West Virginia 139 6,350 21.93 265.79
23 Wisconsin 3,817 671 8.10 86.74*
44 Wyoming 98 2,473 16.67 -26.32

* Actual increase may not be as high due to data collection changes or
improvements

+ Collection of some records previously classified as NOD in this state
was discontinued starting in January 2009

++ Collection of some records previously classified as NOD in this state
was discontinued starting in September 2008

U.S. Foreclosure Rates Heat Map - July 2009
(Photo: http://www.newscom.com/cgi-bin/prnh/20090813/LA61060)
About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the leading online marketplace of foreclosure properties, with more than 1.5 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac's foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures.
Source: IRVINE, Calif., Aug. 13 /PRNewswire/ --