National foreclosure filings plummet by 29 percent due to procedural delays

TRD New York /
Jul.July 14, 2011 09:48 AM

Nationwide foreclosures are on the way down, with only about 1.7 million properties receiving default notices, auction sale notices or bank repossessions in the first half of 2011, a 25 percent decrease from the previous six months and a 29 percent decrease from the first half of 2010, according to a mid-year foreclosure market report by RealtyTrac, released yesterday. However, the reduction is not necessarily a good sign for the market, RealtyTrac said. Rather, it is simply more evidence that processing delays are pushing foreclosures further and further back into 2012.

Foreclosure filings were reported on 222,740 U.S. properties in June, the report shows, an increase of almost 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. 

Filings were reported on 608,235 U.S. properties during the second quarter, a decrease of close to 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.

“It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” James Saccacio, CEO of RealtyTrac, said. “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.” 

As for procedural delays, Saccacio said: “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.” — Katherine Clarke

Related Articles

Nationwide foreclosures are at a 15-year low (Credit: iStock)

Foreclosures nationwide fell to 15-year low in 2019

494 Broadway and Thor Equities' Joe Sitt (Credit: Google Maps)

Thor faces foreclosure on site where lender says it’s seeking “unrealistic rents”

Maefield Development's Mark Siffin and 20 Times Square (Credit: Maefield)

Lender forecloses on Maefield’s billion-dollar Times Square project

Thor Equities' Joe Sitt and 725 8th Avenue (Credit: Google Maps)

Thor facing foreclosure at Theater District building

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

Manhattan’s 10019 zip code, which covers Midtown, Times Square, Herald Square and Midtown South, saw the most foreclosures in the borough with eight. (Credit: iStock)

Manhattan foreclosures soar 118%, driven by mortgage defaults

15 East 63rd Street and Oleg Cassini (Credit: Google Maps and Getty Images)

Oleg Cassini’s former UES headquarters faces foreclosure

Mayor Bill de Blasio and Frank Carone (Credit: Getty Images)

City tapped De Blasio donor to take over foreclosed properties