Foreclosure freezes spur record declines in activity: RealtyTrac

New York /
Dec.December 16, 2010 09:22 AM

U.S. foreclosure activity dropped to its lowest level in nearly two years in November, as the country’s biggest lenders put the breaks on their proceedings amid allegations that they’d been taking over properties without properly verifying the paperwork, according to a report from RealtyTrac released today.

The country’s 262,399 foreclosure filings represent a 21 percent month-over-month and a 14 percent year-over-year decline — the largest in almost six years by both measures.

In New York City, there were 863 foreclosure filings last month, down a dramatic 41 percent from the 1,466 filings recorded in October and 56 percent from the 1,949 filings in November 2009.

The area’s declines were so large in part because New York is among the nation’s judicial foreclosure states, which are seeing the most radical effects of lenders’ foreclosure freezes. According to the RealtyTrac, initial foreclosure filings were down 31 percent month-over-month in states that use a judicial foreclosure process, compared to a mere 9 percent month-over-month decline in states that do not.

“The added element of the judicial states is, [in addition to] the lenders being more attentive to detail in processing, the judges who are reviewing these cases… all this has caused them to step up their review,” said Daren Blomquist, a RealtyTrac spokesperson. “That’s just slowing everything down.”

Yesterday, HSBC announced that it would restart foreclosure proceedings in New York, and Bank of America plans to resume foreclosures in January. Blomquist said he expects nationwide foreclosure activity to return to its typically higher levels sometime in the first quarter of 2011.


Related Articles

arrow_forward_ios
CW Realty's Cheskie Weisz and 187 Kent Avenue (CW Realty, The Kent House, Getty)
Kent House owners refi Williamsburg rental after dodging foreclosure
Kent House owners refi Williamsburg rental after dodging foreclosure
Ben Byrne and 1 Java Street (LinkedIn, LendLease)
Lendlease lands $360M construction loan for Greenpoint rental towers
Lendlease lands $360M construction loan for Greenpoint rental towers
1540 Broadway and Edge Fund Advisors' Mark Keller (Getty, Americasroof at English Wikipedia/CC BY-SA 3.0/via Wikimedia Commons, Edge Funds)
Pandora plans HQ move to Times Square tower
Pandora plans HQ move to Times Square tower
A photo illustration of Bank of America CEO Brian Moynihan (Getty Images)
Bank of America piloting no-down payment mortgages
Bank of America piloting no-down payment mortgages
RXR Realty’s Scott Rechler and 75 Rockefeller Plaza (Illustration by Kevin Cifuentes for The Real Deal with Getty Images, dconvertini/CC BY-SA 2.0/via Wikimedia Commons)
RXR lands $260 million refi for 75 Rockefeller Plaza
RXR lands $260 million refi for 75 Rockefeller Plaza
Witkoff's Steve Witkoff and The Brook in Brooklyn (Witkoff, Illustration by The Real Deal with Getty)
Witkoff, Apollo get construction financing for DoBro rental tower
Witkoff, Apollo get construction financing for DoBro rental tower
John Catsimatidis and 3514 Surf Avenue (Google Maps)
Catsimatidis gets $153M refi on Coney Island apartment towers
Catsimatidis gets $153M refi on Coney Island apartment towers
Innovo Property Group's Andrew Chung and 452 Fifth Avenue (Innovo, iStock, קבוצת נכסים ובניין, CC BY-SA 3.0 via Wikimedia Commons/Illustration by Kevin Rebong for The Real Deal)
How the $855M deal for the HSBC tower fell apart
How the $855M deal for the HSBC tower fell apart
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...