Foreclosure Activity Off 29 Percent for First Half of 2011


1.17 Million Homes Receive Foreclosure Notice During First Six Months of the Year
Second Quarter Numbers Lowest Since Fourth Quarter of 2007

IRVINE, CA – July 14, 2011 – (RealEstateRama) — RealtyTrac® (,  the leading online marketplace for foreclosure properties, today released its  Midyear 2011 Foreclosure Market Report, which shows a total of 1,170,402 U.S.  properties received foreclosure filings — default notices, auction sale notices  and bank  repossessions — in the first six months of 2011, a 25 percent decrease from  the previous six months and a 29 percent decrease from the first half of 2010.  The report also shows that 0.90 percent of all U.S. housing units (one in 111) had  at least one foreclosure filing in the first half of the year.

Foreclosure filings were reported on 222,740 U.S. properties  in June, an increase of nearly 4 percent from the previous month, but a  decrease of 29 percent from June 2010. June was the ninth straight month where  foreclosure activity decreased on a year-over-year basis. Default  notices, scheduled  auctions and REOs were all up on a month-over-month basis but down  on a year-over-year basis in June.

Foreclosure filings were reported on 608,235 U.S. properties  during the second quarter, a decrease of nearly 11 percent from the first  quarter and a decrease of 32 percent from the second quarter of 2010. The  second quarter total was the lowest quarterly total since the fourth quarter of  2007. All categories of foreclosure were down both on quarterly basis and  annual basis in the second quarter.

“It would be nice to  report that foreclosure activity is dropping as a result of improvements in the  economy or the housing market,” said James J. Saccacio, chief executive officer  of RealtyTrac. “Unfortunately, with unemployment rates inching back up,  consumer confidence weak and home sales and prices continuing to languish, this  doesn’t appear to be the case.

“Processing and  procedural delays are pushing foreclosures further and further out – we  estimate that as many as 1 million foreclosure actions that should have taken  place in 2011 will now happen in 2012, or perhaps even later. This casts an  ominous shadow over the housing market, where recovery is unlikely to happen  until the current and forthcoming inventory of distressed properties can be  whittled down to a manageable number.”

Nevada, Arizona, California post top state foreclosure rates
Nearly 5 percent of all Nevada housing  units (one in 21) received at least one foreclosure filing in the first half of  2011, giving Nevada the nation’s highest foreclosure rate during the six-month  period despite continued decreases in foreclosure activity. A total of 53,217 Nevada properties  received a foreclosure filing from January to June, a decrease of 17 percent  from both the previous six months as well as from the first six months of 2010.  Overall Nevada  foreclosure activity decreased on a year-over-year basis for the fifth straight  month in June despite a 19 percent year-over-year spike in REO activity.

Arizona registered the nation’s second highest state foreclosure rate in the first half  of 2010, with 2.82 percent of its housing units (one in 36) receiving a  foreclosure filing, and California registered the nation’s third highest state foreclosure rate, with 1.96 percent  of its housing units (one in 51) receiving a foreclosure filing during the six  months.

Other states with  foreclosure rates ranking among the nation’s 10 highest were Utah  (1.65 percent), Georgia  (1.50 percent), Idaho (1.49 percent), Michigan (1.34 percent), Florida  (1.28 percent), Colorado (1.19 percent), and Illinois (1.15 percent).

California, Florida, Arizona post highest foreclosure totals
A total of 263,500 California properties  received a foreclosure filing in the first half of 2011, the nation’s highest  total but down 13 percent from the previous six months and down nearly 23  percent from the first half of 2010.  California foreclosure  activity decreased on a year-over-year basis for the 19th straight  month in June, but default notices and REOs increased on a month-over-month  basis, continuing a sawtooth pattern in the monthly numbers.

With 113,641 properties  receiving a foreclosure filing in the first six months of 2011, Florida documented the second highest state total despite a nearly 55 percent decrease  in foreclosure activity from the previous six months and a nearly 59 percent  decrease in foreclosure activity from the first half of 2010. Florida foreclosure activity decreased on a  year-over-year basis for the eighth straight month in June, but default notices  spiked 44 percent from May and scheduled auctions jumped 17 percent from May.

Arizona’s 77,525 properties with foreclosure filings  in the first six months of 2011 was the third highest state total. The state’s  foreclosure activity decreased nearly 7 percent from the previous six months  and was down 15 percent from the first half of 2010.

Other states with  first-half totals among the 10 highest in the country were Michigan  (61,005), Georgia (60,870), Illinois (60,636), Texas  (55,442), Nevada (53,217), Ohio  (44,419), and Colorado  (25,744).

Foreclosure Process Timelines and Days to Sell
U.S. properties foreclosed in the second quarter were  in the foreclosure process an average of 318 days from the initial foreclosure  notice to the completed foreclosure, up from a revised 298 days in the first quarter  and up from 277 days in the second quarter of 2010.

The foreclosure process  took the longest in New York, at 966 days on  average for properties foreclosed in the second quarter, followed by New Jersey at 944 days and Florida at 676 days. Texas  posted the shortest foreclosure timeline, at 92 days for properties foreclosed  in the second quarter, followed by Virginia  at 106 days.

U.S. REO properties that  sold in the second quarter took an average of 178 days to sell from the time  they were foreclosed, up slightly from 176 days in the first quarter and up  from 164 days in the second quarter of 2010. REO properties took the longest to  sell in New York, at 309 days, followed by New Jersey at 285 days and Minnesota at 268 days.

U.S. properties in the foreclosure  process that sold in second quarter (typically short sales) took an average of  213 days to sell from the time they entered the foreclosure process, down from  228 days in the first quarter but up from 195 days in the second quarter of  2010.

Report methodology
The RealtyTrac Midyear U.S. Foreclosure Market  Report provides a count of the total number of properties with at least one  foreclosure filing entered into the RealtyTrac database during the first six  months of the year. Some foreclosure filings entered into the database during  the six-month period may have been recorded in previous months. Data is  collected from more than 2,200 counties nationwide, and those counties account  for more than 90 percent of the U.S.  population. RealtyTrac’s report incorporates documents filed in all three  phases of foreclosure: DefaultNotice  of Default (NOD) and Lis  Pendens (LIS); Auction —  Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real  Estate Owned, or REO  properties (that have been foreclosed on and repurchased by a bank). For  the midyear and quarterly reports, if more than one foreclosure document is  received for a property during the six-month period or quarter, only the most  recent filing is counted in the report. The midyear, quarterly and monthly  reports all check if the same type of document was filed against a property  previously. If so, and if that previous filing occurred within the estimated  foreclosure timeframe for the state where the property is located, the report  does not count the property in the current year, quarter or month.

Report License                                                                              
The RealtyTrac U.S. Foreclosure Market Report is  the result of a proprietary evaluation of information compiled by RealtyTrac;  the report and any of the information in whole or in part can only be quoted,  copied, published, re-published, distributed and/or re-distributed or used in  any manner if the user specifically references RealtyTrac as the source for  said report and/or any of the information set forth within the report.

About RealtyTrac Inc.
RealtyTrac ( is the leading online  marketplace of foreclosure properties, with more than 2 million default,  auction and bank-owned listings from over 2,200 U.S. counties, along with detailed  property, loan and home sales data. Hosting more than 3 million unique monthly  visitors, RealtyTrac provides innovative technology solutions and practical  education resources to facilitate buying, selling and investing in real estate.  RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI,  U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury  Department, and numerous state housing and banking departments to help evaluate  foreclosure trends and address policy issues related to foreclosures.


Media Contacts:
Christine Stricker
949.502.8300, ext. 268


Michelle Schneider
949.502.8300, ext. 139

Detailed & Historical Data
Tyler White
949.502.8300, ext. 158

By RealtyTrac Staff

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