US Foreclosures Lowest Since 2006

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Home foreclosure activity was down 14 percent in June from the previous month, reaching its lowest level since December 2006, according to the latest midyear foreclosure market report from RealtyTrac.

During the first six months of the year, 801,359 homes were in some level of foreclosure -- default notices, scheduled auctions and bank repossessions -- a 19 decrease from the previous six months and 23 percent lower than the same period last year. 

"Halfway through 2013 it is becoming increasingly evident that while foreclosures are no longer a problem nationally they continue to be a thorn in the side of several state and local markets, particularly where a backlog of delayed distress has built up thanks to a lengthy foreclosure process," Daren Blomquist, vice president at RealtyTrac, said in a release. "The increases in judicial foreclosure auctions demonstrate that these delayed foreclosure cases are now being moved more quickly through to foreclosure completion."

The top five states for foreclosure rates during the first half of the year were Florida, Illinois, Maryland, Ohio and Nevada. One in every 355 housing units had a foreclosure filing in Florida, three times the national average. Foreclosure activity decreased 58 percent from the previous month in Nevada but it still had the second highest rate in the nation.  

Florida not only topped the state list, it had the top five metro city foreclosure rates: Miami, Orlando, Jacksonville, Ocala and Tampa. 

More highlights from the report: 
 

• U.S. foreclosure starts in June dropped 21 percent from the previous month and were down 45 percent from a year ago to the lowest monthly level since December 2005 -- a seven and a half year low. Year to date through June, 409,491 foreclosure starts have been filed nationwide, on pace to reach more than 800,000 for the year, which would be down from 1.1 million foreclosure starts in 2012.

• Foreclosure starts in June decreased from the previous month in 38 states, including Nevada (down 84 percent), Colorado (down 62 percent), New Jersey (down 40 percent), Illinois (down 39 percent) and Florida (down 26 percent).

• Bank repossessions (REO) in June decreased 9 percent from the previous month and were down 35 percent from a year ago. Year to date through June, a total of 248,538 bank repossessions have occurred nationwide, on pace for nearly 500,000 for the year, which would be down from more than 671,000 in 2012.

• Bank repossessions in June decreased from a year ago in 34 states, but there were some notable exceptions where bank repossessions were up from a year ago, including Arkansas (up 143 percent), Oklahoma (up 103 percent), Maryland (up 74 percent), Washington (up 71 percent), New Jersey (up 33 percent), and New York (up 21 percent).

• Judicial foreclosure auctions (NFS) were scheduled for 28,296 U.S. properties in June, up less than 1 percent from May but up 34 percent from June 2012. States with substantial annual increases in scheduled judicial foreclosure auctions included New Jersey (up 103 percent), Florida (up 100 percent), Maryland (up 94 percent), New York (up 66 percent), and Illinois (up 65 percent to a 35-month high).