According to RealtyTrac's recent report, U.S. Foreclosure Inventory Analysis, nearly 1.5 million U.S. properties were actively in the foreclosure process or bank-owned (REO) in the first quarter of 2013, up 9 percent from the first quarter of 2012 but still down 32 percent from the peak of 2.2 million in December 2010.
“Delinquent loans that fell into a deep sleep after the robo-signing controversy in late 2010 are gradually coming out of hibernation following the finalization of the national mortgage settlement in April 2012,” said Daren Blomquist, vice president at RealtyTrac. “The settlement provided some closure regarding accepted foreclosure processing practices, and as a result lenders have been reviving more of these delinquent loans and pushing them into foreclosure over the past 12 months, particularly in states where a lengthy court process has resulted in a bigger backlog of non-performing loans still in snooze mode.”
Details of the entire foreclosure inventory analysis, along with illustrating charts, are in a 14-page report available online here or upon request from the media contacts listed below:
High-level findings from the analysis:
The RealtyTrac U.S. Foreclosure Inventory Analysis provides a count of the total number of properties in some stage of the foreclosure process or bank owned. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure:
Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee’s 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). Properties are removed from active foreclosure inventory if sold to a third part; if RealtyTrac collects a recission notice showing the lender has stopped foreclosure proceedings; or if no new foreclosure activity is reported for the property for a longer period of time than the average number of days it takes to complete the foreclosure process in the state where the property is located.
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.