The Portland Condo Blog

Oregon Foreclosures on the Decline!

Some of the biggest state REO decreases were in Nevada (76 percent), Oregon (57 percent), Virginia (56 percent), Washington (46 percent), Utah (46 percent), Massachusetts (43 percent), Pennsylvania (43 percent), and Colorado (43 percent).

States with some of the biggest annual increases in REO activity included Kentucky (44 percent), Illinois (41 percent), Wisconsin (32 percent) and Maryland (23 percent).

Recently, many lenders have been trying to avoid the expensive and lengthy foreclosure process by making short sales, those in which banks accept prices less than what is owed on the mortgages.

RealtyTrac has released its U.S. Foreclosure Market Report for August 2012, which shows foreclosure filings—default notices, scheduled auctions and bank repossessions—were reported on 193,508 U.S. properties in August, an increase of one percent from July but down 15 percent from August 2011. The report also shows one in every 681 U.S. housing units with a foreclosure filing during the month.

Despite a 32 percent year-over-year decrease in overall foreclosure activity in August—the ninth consecutive month with an annual decrease—California still posted the nation’s third highest state foreclosure rate. One in every 340 California housing units had a foreclosure filing in August—twice the national average.

“Bucking the national trend, deferred foreclosure activity boiled over in several states in August,” said Daren Blomquist, vice president of RealtyTrac. “In judicial states such as Florida, Illinois, New Jersey and New York, this was a continuation of a trend we’ve been seeing for several months now.

The increases in Florida and Illinois pushed foreclosure rates in those states to the two highest in the country—supplanting the non-judicial states of Arizona, California, Georgia and Nevada. Previous to August, the nation’s top two state foreclosure rates have been from those four non-judicial states every month since December 2010.”

“Meanwhile foreclosure activity in most non-judicial states stayed on a downward trajectory in August, with a few exceptions,” Blomquist said. “Most notably, Washington state documented a 38 percent annual increase in foreclosure activity in August after 16 straight months of year-over-year declines.

The rebounding activity in Washington state is likely the result of lenders catching up with foreclosures delayed by a state law that took effect in July 2011 and allowed homeowners facing foreclosure to request mediation. This rebounding pattern will likely be repeated in the coming months in other states that have passed legislation delaying the foreclosure process.”

Findings from the report include:

►Illinois posted the nation’s highest foreclosure rate, one in every 298 housing units with a foreclosure filing. August was the first month that Illinois has ranked No. 1 since RealtyTrac began issuing its report in January 2005.

►Twenty states registered year-over-year increases in foreclosure activity, led by judicial foreclosure states such as New Jersey, New York, Maryland, Illinois and Pennsylvania.

►Foreclosure activity in the 24 non-judicial states and District of Columbia combined decreased 31 percent annually, although 15 non-judicial states and DC posted monthly increases in foreclosure activity, including Arkansas (61 percent), Utah (41 percent), Colorado (25 percent) and Washington (23 percent).

►Following three straight months of year-over-year increases, U.S. foreclosure starts in August decreased 13 percent from a 17-month high in August 2011.

►U.S. bank repossessions (REO) in August decreased 2 percent from the previous month and were down 19 percent annually — the 22nd consecutive month with a year-over-year decline in REOs.

Foreclosure starts—default notices or scheduled foreclosure auctions, depending on the state—were filed for the first time on 99,405 U.S. properties in August, a one percent increase from July but down 13 percent from August 2011, when foreclosure starts hit a 17-month high. Foreclosure starts increased annually in 18 states, including Washington (143 percent), Pennsylvania (129 percent), Alabama (102 percent), New Jersey (101 percent) and New York (63 percent).

Other states with sizable annual increases in foreclosure starts included Minnesota (42 percent), North Carolina (36 percent), Maryland (29 percent), Florida (26 percent) and Illinois (18 percent).

States with some of the biggest annual decreases in foreclosure starts included Oregon (89 percent), Nevada (64 percent), Utah (57 percent), Massachusetts (47 percent), California (42 percent), Arizona (41 percent) and Georgia (31 percent). Recent legislation or court rulings in Oregon, Nevada, Massachusetts, California and Georgia could be contributing to a slowdown in those states.

Lenders completed the foreclosure process on 52,380 U.S. properties in August, a 2 percent decline from the previous month and a 19 percent decrease from August 2011—the 22nd consecutive month with a year-over-year decline in bank repossessions. Real estate-owned (REO) activity decreased annually in 35 states and the District of Columbia.

Illinois posted the nation’s highest state foreclosure rate in August thanks to a 29 percent jump in overall foreclosure activity from the previous month. A total of 17,781 Illinois properties had a foreclosure filing in August, one in every 298 housing units and an increase of 42 percent from August 2011. Illinois foreclosure activity was up across the board—foreclosure starts increased 18 percent annually, scheduled foreclosure auctions were up 116 percent annually, and bank repossessions were up 41 percent annually. August marked the eighth consecutive month where Illinois foreclosure activity increased on a year-over-year basis.

Florida foreclosure activity in August increased on a year-over-year basis for the seventh time in the last eight months, helping the state post the nations’ second highest foreclosure rate: one in every 328 housing units with a foreclosure filing. Florida foreclosure starts increased 26 percent annually while scheduled foreclosure auctions were up four percent and bank repossessions were up 12 percent.

If you are in the market for a new Portland condo or loft, there are still some good buys in the market! Call Brad Golik to set up a tour of available Portland condos today!
Oregon Foreclosures, Pearl Condos

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