Foreclosures spike after months of decreases

by Ryan Smith11 Sep 2014
Foreclosure activity spiked last month after falling for several months, according to data released today. Scheduled foreclosure auctions also saw their first year-over-year increase since 2010.

Foreclosure filings were reported on 116,913 U.S. properties last month, according to RealtyTrac’s U.S. Foreclosure Market Report. That’s a spike of 7% over July, although it’s still 9% below August of 2013. One in every 1,126 housing units had a foreclosure filing in August, according to the report.

More than 51,000 properties were scheduled for auction during August. That’s down from July but up by 1% from August of 2013 – the first annual increase since November of 2010. Scheduled auctions in judicial states – where foreclosures are processed through the courts – were up 5% from last year.

“The August foreclosure numbers demonstrate that although the foreclosure crisis is well behind us, the messy business of cleaning up the distress lingering from the housing bust continues in many markets,” said Daren Blomquist, vice president at RealtyTrac. “The annual increase in foreclosure auctions — the first since the robo-signing controversy rocked the foreclosure industry back in late 2010 — indicates mortgage servicers are finally adjusting to the new paradigms for proper foreclosure that have been implemented in many states, whether by legislation or litigation or both.”

Colorado led the pack in increased foreclosure auctions (up 160%), followed by Oregon (up 117%), Connecticut (up 81%), New York (up 81%) and Oklahoma (up 72%).



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