Foreclosure Filings in U.S. Down 9 Percent in November

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According to RealtyTrac's U.S. Foreclosure Market Report for November 2014, there was 112,498 U.S. foreclosure filings in November, a decrease of 9 percent from the previous month and down 1 percent from a year ago. This is the 50th consecutive month with a year-over-year decrease in overall foreclosure activity. The report also shows one in every 1,170 U.S. housing units with a foreclosure filing during the month.

A total of 55,906 U.S. properties started the foreclosure process in November, a decrease of 1 percent from the previous month but a 6 percent increase from a year ago, the first year-over-year increase following 27 consecutive months of year-over-year decreases.

50,102 U.S. properties were scheduled for foreclosure auction during the month, down 16 percent from an 18-month high in the previous month but up 5 percent from a year ago.

Lenders repossessed 25,249 properties in November, down 10 percent from the previous month and down 17 percent from a year ago, making November the 24th consecutive month with year-over-year decreases.

"The housing market is struggling to find the new normal when it comes to a tolerable level of foreclosure activity in this post-Great Recession economy," said Daren Blomquist, vice president at RealtyTrac. "Finding that new normal requires striking a balance between too much loan risk, which would result in another housing meltdown, and too little risk, which could result in a stunted recovery.

"Foreclosure rates on 2014-originated loans are actually higher than 2013-originated loans nationwide and in many markets, indicating that lenders are open to a slightly higher level of risk than we've seen over the past five years of extremely tight lending standards," Blomquist continued. "But it's unlikely that lenders will dial up that risk level too quickly going forward given that many are still dealing with working through a lengthy and messy foreclosure process on risky loans from the last loose lending spree."

Scheduled foreclosure auctions increased from a year ago in 30 states, including Kentucky (up 163 percent), Tennessee (up 159 percent), North Carolina (up 157 percent), New Jersey (up 117 percent), Oregon (up 114 percent), New York (up 76 percent), Texas (up 34 percent), Pennsylvania (up 13 percent), Georgia (up 8 percent), and Washington (up 7 percent).

"I think the reason we've seen foreclosure activity go up in Seattle over the past year is because banks are simply better prepared for defaults. As a result, they're able to get a higher volume of foreclosures processed much more quickly," said OB Jacobi, president of Windermere Real Estate, covering the Seattle market

Other high-level findings from the report:

• Foreclosure starts, which in some states are the scheduled foreclosure auctions, increased from a year ago in 30 states, including New Jersey (up 256 percent), Nevada (up 138 percent), Massachusetts (up137 percent), Indiana (up 55 percent), and Utah (up 20 percent).

• REOs increased from a year ago in 15 states, including Maryland (up 93 percent), North Carolina (up 66 percent), New York (up 64 percent), Kentucky (up 56 percent), New Jersey (up 54 percent), Iowa (up 29 percent), and Massachusetts (up 29 percent).

• Five of the nation's 20 largest metro areas posted year-over-year increases in foreclosure activity: New York (up 71 percent), Houston (up 70 percent), Philadelphia (up 43 percent), Boston (up 27 percent) and Baltimore (up 22 percent).

• Among the nation's 20 largest metros, those with the five highest foreclosure rates were Miami (one in every 394 housing units with a foreclosure filing), Tampa (one in every 432 housing units), Baltimore (one in every 576 housing units), Philadelphia (one in every 625 housing units), Chicago (one in every 716 housing units) and Riverside-San Bernardino-Ontario in Southern California (one in every 725 housing units).