Foreclosure Auctions Spiking in Some States

[IMGCAP(1)]

IRVINE, CA—With a slight rise in foreclosure activity in the third quarter over the previous one, as GlobeSt.com reported last week, in a recent report RealtyTrac notes states in various parts of the country where foreclosure auctions have increased.

Foreclosure auctions were scheduled on 139,721 US properties in the third quarter, an increase of 7% from the previous quarter, but a decrease of 1% from the third quarter of 2013—the 15^th consecutive quarter where scheduled foreclosure auctions have decreased on a year-over-year basis nationwide, RealtyTrac reports. Scheduled foreclosure auctions in the third quarter increased from a year ago in 22 states, including North Carolina, Oregon, New Jersey, Oklahoma, New York, Connecticut, Colorado, Alabama, Texas and Ohio.

Compared to the previous quarter, scheduled foreclosure auctions in the third quarter increased in 32 states, including Michigan, Maryland, California, Texas and Arizona, according to RealtyTrac. However, lenders repossessed 74,271 US properties in the third quarter, a decrease of 12% from the previous quarter and down 38% from the third quarter of 2013—the 16^th consecutive quarter where REOs have decreased on a year-over-year basis nationwide.

REOs did increase from a year ago in the third quarter in seven states, including Maine, Maryland, Oregon, Georgia and New Jersey. States with the highest foreclosure rates in the third quarter were Florida, Maryland, New Jersey, Nevada and Illinois.

According to Frank Duran of RE/MAX Alliance, which covers the Denver market, “The short-sale market has definitely minimized from what we experienced a couple of years ago; however, we are still seeing a steady flow of homeowners in need of avoiding foreclosure. A couple of years ago, out of every 20 clients I was serving, 17 or 18 of those clients were people I was helping through a short sale, and over the last year this ratio has flip-flopped; I am now serving two to three clients in a short sale for every 20 clients I serve.”

[IMGCAP(2)]