Colorado ranked No. 12 in foreclosure activity in the U.S, according to a third-quarter RealtyTrac report released today.
However, Denver-based SKLD Information Services, considered by many to provide the “gold standard” of real estate research, shows a much more dramatic drop for the Denver area than SKLD’s data shows. However, SKLD and RealtyTrac are covering different geographic areas and use different methodologies. On the other hand, SKLD’s data is consistently similar to data released by the Colorado Division of Housing, which often finds itself reporting significant differences with RealtyTrac.
RealtyTrac, based in Irvine, Calif., shows a total of 16,315 foreclosure actions in Colorado in the third quarter, or one for every 132 households. Nationally, there was one foreclosure filing for every 139 foreclosure filings. RealtyTrac combines all phases of the foreclosure process, from the time the initial notice is filed until it become a REO, or real estate owned.
RealtyTrac data for Colorado showed a 0.31 percent increase in the third quarter from third quarter 2009, compared with a 0.79 percent drop for the entire nation.
“It’s interesting that it shows an increase of about zero, year over year,” said Ryan McMaken, of the Colorado Division of Housing. ”If you pull out filings and sales for the third quarter in my data, filings are going down, while sales are going up, There are definitely two different trends right now.”
SKLD, in contrast to RealtyTrac’s data, shows a 5.63 percent decline for all foreclosure activity for the 14 Colorado counties it tracks, which covers 85 percent of the state’s population. The seven Denver-area counties showed a 4.1 percent drop. Year-to-date, however, filings are up 1.01 percent for the 14 counties, and up 2.29 percent in metro Denver, according to SKLD, which is owned by several title insurance companies.
SKLD: Denver filings down 17%
However, when only new foreclosure activity is counted – notice of election and demands – the overall SKLD market showed almost an 18.7 percent drop in new foreclosures in the third quarter compared with the third quarter of 2009. The Denver-area counties were down 17.2 percent for the same time period.
Completed foreclosure sales by the public trustees, however, showed a much different trend, rising by 9.46 percent for the 14 counties in September from August, and up 11 percent in the Denver area. Year-to-date, sales are up 19.1 percent overall and 19.63 percent in the Denver area.
The statewide report by RealtyTrac shows a 6.72 percent increase in the third quarter from the second quarter, compared with a 3.9 percent increase for the entire nation.
Across the country, RealtyTrac showed 930,437 properties in some stage of foreclosure in the quarter, up almost 4 percent from the second quarter, but down almost 1 percent from the third quarter of 2009.
Foreclosure filings were reported on 347,420 U.S. properties in September, an increase of nearly 3 percent from the previous month and an increase of 1 percent from September 2009. A record total of 102,134 bank repossessions were reported in September, the first time bank repossessions have surpassed the 100,000 mark in a single month.
Lull due to moratoriums
“Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months,” said James J. Saccacio, CEO of RealtyTrac. “We expect to see a dip in those bank repossessions — and possibly earlier stages of the foreclosure process — in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks.”
Foreclosure activity in the 24 judicial foreclosure states most affected by the foreclosure documentation issue accounted for 40 percent of all foreclosure activity in the third quarter and 36 percent of bank repossessions, or REOs.
“If the lenders can resolve the documentation issue quickly, then we would expect the temporary lull in foreclosure activity to be followed by a parallel spike in activity as many of the delayed foreclosures move forward in the foreclosure process,” Saccacio said. “However, if the documentation issue cannot be quickly resolved and expands to more lenders we could see a chilling effect on the overall housing market as sales of pre-foreclosure and foreclosed properties, which account for nearly one-third of all sales, dry up and the shadow inventory of distressed properties grows — causing more uncertainty about home prices.”
Preliminary RealtyTrac foreclosure sales numbers for September show that overall foreclosure sales — including pre-foreclosure sales and REO sales — accounted for 31 percent of all sales during the month. REO sales alone accounted for 18 percent of all sales. Foreclosure sales in the 24 states most affected by the foreclosure documentation issue accounted for 32 percent of all foreclosure sales nationwide, based on the preliminary September data.
Nevada No. 1
Nevada was once again the king of foreclosures. One in every 29 Nevada housing units received a foreclosure filing during the quarter, almost five times the national average. Nevada foreclosure activity increased nearly 1 percent from the previous quarter but was down nearly 20 percent from the third quarter of 2009.
Arizona posted the nation’s second highest state foreclosure rate for the fifth consecutive quarter, with one in every 55 housing units receiving a foreclosure filing, and Florida posted the nation’s third highest state foreclosure rate for the fourth consecutive quarter, with one in every 56 housing units receiving a foreclosure filing.
With one in every 70 housing units receiving a foreclosure filing during the third quarter, California documented the nation’s fourth highest foreclosure rate, followed by Idaho, with one in every 86 housing units receiving a foreclosure filing during the quarter. A total of 7,424 Idaho housing units received a foreclosure filing during the quarter, an increase of nearly 20 percent from the previous quarter and an increase of nearly 14 percent from the third quarter of 2009.
Other states with foreclosure rates ranking among the top 10 in the first quarter were Utah, Georgia, Michigan, Illinois and Hawaii.
Five states account for more than 50 percent of nation’s third quarter total California alone accounted for 21 percent of the nation’s total foreclosure activity in the first quarter, with 191,016 properties receiving a foreclosure notice — the nation’s largest foreclosure activity total. California foreclosure activity decreased nearly 1 percent from the previous quarter and was down nearly 24 percent from the third quarter of 2009.
Florida foreclosure activity increased 12 percent from the previous quarter and was flat from a year ago, giving the state the second largest foreclosure activity total, with 157,026 properties receiving a foreclosure filing.
With 49,103 properties receiving a foreclosure filing in the third quarter, Arizona posted the nation’s third largest state foreclosure activity total. Arizona foreclosure activity increased nearly 8 percent from the previous quarter but was down 2 percent from the third quarter of 2009.
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