Florida Leads U.S. Foreclosures

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Florida posted the highest state foreclosure rate in the U.S. in July for the third consecutive month, according to the latest U.S. foreclosure market report from RealtyTrac. 

One in every 328 homes in Florida reported a foreclosure filing -- which includes default notices, scheduled auctions and bank repossessions -- more than three times the national average. Foreclosure activity was up seven percent from a year ago and eight percent from June, as Florida continues to struggle from the boom and bust cycle of the last decade.

The foreclosure activity in Florida was a sharp contrast to to the national data, which showed foreclosure filings were 32 percent lower from a year ago, despite a two percent increase from last month's seven-year-low.   

"U.S. foreclosure activity in July is 64 percent below the peak of more than 367,000 properties with foreclosure filings in March 2010," Daren Blomquist, vice president of RealtyTrac said in the report. "But [it] is still 54 percent above the historical average of 85,000 properties with foreclosure filings per month before the housing bubble burst in late 2006."

There are a dozen states where foreclosure activity levels in July were at or below average monthly levels prior to the bubble bursting, the firm reports. Those states include Texas, Colorado, Oklahoma, Indiana and Michigan. The firm expects the number of states in this category to increase in the coming months.

More highlights from the report:

• The monthly increase in U.S. foreclosure activity was driven by a 6 percent monthly increase in foreclosure starts and a four percent monthly increase in bank repossessions (REO), although both metrics decreased from a year ago.

• Foreclosure starts increased from the previous month in 26 states and were up from a year ago in 15 states, including Maryland (up 275 percent), Oregon (up 137 percent), New Jersey (up 89 percent), Connecticut (up 37 percent), and New York (up 27 percent).

• Bank repossessions increased from the previous month in 29 states and were up from a year ago in 18 states, including Arkansas (up 266 percent), Oklahoma (up 126 percent), Maryland (up 101 percent), New York (up 100 percent), Connecticut (up 67 percent), New Jersey (up 40 percent), and Ohio (up 20 percent).

• The top six state foreclosure rates in July were in states with a judicial foreclosure process, although two of those top six states posted decreasing foreclosure activity from a year ago: Ohio (down 18 percent) and Illinois (down 44 percent).

• Arizona's foreclosure rate dropped out of the top 10 highest for the first time since February 2007, joining California's foreclosure rate, which was out of the top 10 for the sixth consecutive month in July, and Michigan's foreclosure rate, which was out of the top 10 for the fifth consecutive month in July.

• Among the nation's 20 largest metropolitan statistical areas, 10 posted increasing foreclosure activity from the previous month and five posted increasing foreclosure activity from a year ago: Baltimore (up 182 percent), Miami (up 58 percent), New York (up 42 percent), Philadelphia (up 11 percent), and Washington, D.C. (up 5 percent).