USA Today
Foreclosure filings increased 14% in December from November, the first monthly increase since foreclosure activity peaked in July, according to a RealtyTrac report out Thursday.
Foreclosure filings were reported on 349,519 properties in December, which were also 15% higher than in December 2008, RealtyTrac said.
"It's somewhat startling to see these kind of numbers," says Brian Bethune at IHS Global Insight. "There are a few areas that are improving. New York has had no further deterioration. But the problem states, like Florida, California and Arizona, are still suffering."
After peaking at more than 361,000 homes in July, foreclosure filings had been falling because of trial loan modifications, state legislation extending the foreclosure process and a large volume of homes in the foreclosure pipeline, RealtyTrac CEO James Saccacio said in a statement.
Foreclosure activity in the fourth quarter decreased 7% from the third quarter, although it was still up 18% from the fourth quarter of 2008.
And after four consecutive month-over-month declines in California, foreclosure activity there in December increased nearly 9% from November. California's fourth-quarter foreclosure activity was still down 17% from the third quarter.
About 2.4 million homes are expected to be lost through foreclosure, auction and other means in 2010, according to Moody's Economy.com. That's despite the Obama administration's efforts to get banks to rework strapped borrowers' home loans into lower monthly payments. The goal is to prevent foreclosures by providing homeowners with more-affordable mortgages.
As of early December, more than 700,000 homeowners had received trial modifications. The Treasury Department will release updated numbers on Friday. "The foreclosure crisis continues on. I don't see any stabilization," says Mark Zandi at Moody's Economy.com. "The foreclosure crisis is in full swing, and the (mortgage) modification efforts aren't working that well."
The ongoing foreclosure crisis, he says, will continue to lead to falling home prices in spring and summer.
Filings were reported on 2.8 million properties in 2009, a 21% increase in total properties from 2008 and up 120% from 2007, according to RealtyTrac.
Some states did see foreclosure numbers continue to decline. In North Carolina, holders of Raleigh real estate saw a further decline in bank foreclosures, with a drop of 16.1% over 2008.
Foreclosure filings could ease as more banks agree to short sales, allowing delinquent homeowners to sell homes for less than the balance of their mortgage. The Obama administration is attempting to encourage short sales.
"We should also see more short sales, because lenders are becoming more comfortable with it, and it costs them less" than a foreclosure, Zandi says.
| Foreclosure filings reached a record high in 2009, touching one of every 45 homes, according to RealtyTrac. | ||
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| State | Total properties w/ filings | Change from 2008 |
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| California | 632,573 | 20.8% |
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| Florida | 516,711 | 34.1% |
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| Arizona | 163,210 | 39.6% |
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| Illinois | 131,132 | 31.8% |
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| Michigan | 118,302 | 11.5% |
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| Nevada | 112,097 | 44.3% |
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| Georgia | 106,110 | 24.5% |
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| Ohio | 101,614 | -10.5% |
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| Texas | 100,045 | 4.0% |
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| New Jersey | 63,208 | 1.1% |
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| Virginia | 52,127 | 6.4% |
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| Colorado | 50,514 | 0.2% |
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| New York | 50,369 | 0.7% |
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| Pennsylvania | 44,732 | 20.2% |
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| Maryland | 43,248 | 33.7% |
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| Indiana | 41,405 | -9.9% |
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| Tennessee | 40,733 | -7.8% |
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| Massachusetts | 36,119 | -18.5% |
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| Washington | 35,268 | 35.3% |
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| Wisconsin | 35,252 | 79.0% |
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| Oregon | 34,121 | 89.6% |
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| Minnesota | 31,697 | 56.3% |
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| Missouri | 28,519 | -8.8% |
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| North Carolina | 28,384 | -16.1% |
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| Utah | 27,140 | 82.9% |
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| South Carolina | 25,163 | 67.8% |
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| Alabama | 19,896 | 156.3% |
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| Connecticut | 19,679 | -10.2% |
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| Idaho | 17,161 | 101.6% |
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| Arkansas | 16,547 | 15.9% |
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| Oklahoma | 12,937 | 3.8% |
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| Louisiana | 11,750 | 64.8% |
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| Kentucky | 9,682 | 33.7% |
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| Kansas | 9,056 | 45.6% |
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| Hawaii | 9,002 | 182.6% |
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| New Mexico | 7,212 | 93.5% |
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| New Hampshire | 7,210 | 8.7% |
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| Iowa | 5,681 | 5.5% |
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| Mississippi | 5,402 | 135.6% |
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| Rhode Island | 5,065 | -23.1% |
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| District of Columbia | 3,235 | -22.6% |
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| Maine | 3,178 | 11.5% |
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| Delaware | 3,034 | 20.6% |
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| Alaska | 2,442 | 25.5% |
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| Nebraska | 1,845 | -42.2% |
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| West Virginia | 1,479 | 115.9% |
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| Montana | 1,373 | 10.2% |
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| South Dakota | 765 | 90.3% |
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| Wyoming | 717 | 5.9% |
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| North Dakota | 390 | 5.1% |
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| Vermont | 143 | 4.4% |
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| U.S. total | 2.8 million | 21.2% |
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| Source: RealtyTrac | ||
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