Foreclosures up 9% over last year

The number rose in 26 states and fell in 24, reflecting the increase in activity where the robo-signing scandal had stalled the process.

By Teresa at MSN Real Estate Mar 28, 2013 12:34PM

© Tetra Images/SuperstockForeclosures have risen 9% since this time last year, a sign that lenders are moving to complete the process on homes that were stuck in the pipeline during the robo-signing scandal.

While the number of homes in foreclosure is 32% fewer than the 2.2 million at the peak of the foreclosure crisis in December 2010, the number has been creeping up. From the May 2012 low of 1.3 million, the number rose to 1.5 million in the first quarter of 2013, according to a new analysis by RealtyTrac.

 

"Delinquent loans that fell into a deep sleep after the robo-signing controversy in late 2010 are gradually coming out of hibernation,” Daren Blomquist, vice president at RealtyTrac, said in a news release. He attributed part of the increase to last year’s national mortgage settlement, which allowed the banks to move forward with foreclosure cases that had been frozen in judicial foreclosure states.

 

RealtyTrac’s first U.S. Foreclosure Inventory Analysis found that the number of foreclosures increased year-over-year in 26 states and decreased in 24, plus the District of Columbia. Most of the states that showed increased foreclosure activity require foreclosure cases to go through the courts. The two nonjudicial states showing the greatest increase in foreclosure activity were Washington, up 39%, and Arkansas, up 28%.

The report measures homes that are in the foreclosure process or are bank-owned.

 

All the increase in foreclosure inventory came from pre-foreclosure activity, which increased 59% over a year ago. The number of homes scheduled for foreclosure auction was down 25%, and the number of bank-owned homes fell 3%.

The report also revealed one of the reasons the inventory of for-sale homes is down. The number of foreclosures listed for sale fell 43%, though the number of foreclosures not listed rose 12%.

The report also looked at homes that are in the foreclosure process and are likely to come to market in coming months, often described as the "shadow inventory."

 

These are the states that showed the biggest increase in unlisted foreclosure inventory, homes that have started the foreclosure process but are not yet for sale:

  • New York: 129%
  • Florida: 82%
  • New Jersey: 49%
  • Washington: 41%
  • Pennsylvania: 39%
  • Illinois: 37%
  • Massachusetts: 33%
  • Indiana: 32%
  • Arkansas: 30%
  • Ohio: 25%
  • South Carolina: 24%

These are the states that showed the biggest decrease in unlisted foreclosure inventory:

  • Oregon: down 50%
  • California: down 31%
  • Nevada: down 26%
  • Utah: down 25%
  • Georgia: down 21%
  • Michigan: doesn 19%
  • Virginia: down 18%
  • Arizona: down 15%
  • Tennessee: down 13%
  • Colorado: down 13%
  • Texas: down 11%

 

 
68Comments
Mar 29, 2013 4:04AM
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Obama is an outright liar, and i know his campaign committe is going to come out and beat the reply button to death.   His supporters are just like him , can't see the facts through the fog and willing to reach back years to find cause to blame others.  They will even tell you to go to a source that has incorrect data to show support for him.  Face it people as president Obama sucks.
Mar 28, 2013 11:41PM
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Wow. The paranoid loonies are out in full force tonight.

People, read the article or, better yet, read the actual report. There is nothing new or shocking in these numbers; the foreclosure line was blocked by the courts and now it's flowing again. The sudden increase is foreclosure listings and activity is not the same as a sudden increase in mortgage delinquencies. Despite what Glenn Beck says, the economy is not collapsing and the sky is not falling.

And don't worry about inventory or the market value of your own property. Cash investors (people buying houses with CASH, not mortgages) from overseas and from hedge funds are buying up every good valued property as soon as they hit the market. (Our neighbor is selling his house. The first day it was listed, the realtor held an open house and cash investors were literally lined-up at his door to make bids. And his house is not even a great bargain!)

Another bubble? Perhaps. But since nobody is willing to compromise toward a solution, not in Washington, Wall Street, or anywhere else in this country, our economy will just bounce from one bubble to the next.

Mar 28, 2013 10:01PM
Mar 28, 2013 10:00PM
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Tthe whole credit industry is all a fraud.One big ponzi scheme.Especially the mortgage industry.When you take out a mortgage the Banks do not have that money to lend you.The mortgage document is a fraud.It's all COMPUTER money.Meanwhile you have to pay a fictitious debt with your hard earned paper money(that's another story all together) with interest to the bank,which in turn hands that over to the federal reserve.The bank then sells your loan to another lender.Everytime a bank or lender sells your mortgage they make 10 times what your mortgage balance is.And they sell it many times.You don't SELL something unless your going to make a profit right?A supermarket doesn't sell food unless it makes a profit.If it doesn't make a profit it goes BANKRUPT.Only the Banks(who are too big to fail) get a bailout from the taxpayers who are getting scammed by the people they are bailing out.

Think about this....In your loan document it says that the lender can SELL your mortgage.Why don't they use the word TRANSFER? Because if they used that word there would be no profit involved.By using the word SELL a profit is involved.

The lenders are stealing the hard earned money of the people.When the people can't pay for some reason,they steal their home back through the foreclosure process and the whole cycle starts over again.

There is a reason the people have been brainwashed into thinking owning a house is THE AMERICAN DREAM.If you rent your a 2nd class citizen.If you have a gourgous home with a nice green lawn,you've MADE it.

So what do people do?They take out a mortgage.Usually above their means forcing both parents to have to work just to pay the mortgage.One parent loses their job..Forclosure.

This is STEALING.People need to call it what it is.This make Bernie Madoff look like a lemonade salesman.

Everyone should stand up to the Banks and Mortgage lenders and take them to court.File class action suites against them.Refuse to pay your Mortgages on MORAL grounds.Let them know we are aware of their thievery.Say to them "We are not going

Mar 28, 2013 9:57PM
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Tthe whole credit industry is all a fraud.One big ponzi scheme.Especially the mortgage industry.When you take out a mortgage the Banks do not have that money to lend you.The mortgage document is a fraud.It's all COMPUTER money.Meanwhile you have to pay a fictitious debt with your hard earned paper money(that's another story all together) with interest to the bank,which in turn hands that over to the federal reserve.The bank then sells your loan to another lender.Everytime a bank or lender sells your mortgage they make 10 times what your mortgage balance is.And they sell it many times.You don't SELL something unless your going to make a profit right?A supermarket doesn't sell food unless it makes a profit.If it doesn't make a profit it goes BANKRUPT.Only the Banks(who are too big to fail) get a bailout from the taxpayers who are getting scammed by the people they are bailing out.

Think about this....In your loan document it says that the lender can SELL your mortgage.Why don't they use the word TRANSFER? Because if they used that word there would be no profit involved.By using the word SELL a profit is involved.

The lenders are stealing the hard earned money of the people.When the people can't pay for some reason,they steal their home back through the foreclosure process and the whole cycle starts over again.

There is a reason the people have been brainwashed into thinking owning a house is THE AMERICAN DREAM.If you rent your a 2nd class citizen.If you have a gourgous home with a nice green lawn,you've MADE it.

So what do people do?They take out a mortgage.Usually above their means forcing both parents to have to work just to pay the mortgage.One parent loses their job..Forclosure.

 

This is STEALING.People need to call it what it is.This make Bernie Madoff look like a lemonade salesman.

Everyone should stand up to the Banks and Mortgage lenders and take them to court.File class action suites against them.Refuse to pay your Mortgages on MORAL grounds.Let them know we are aware of their thievery.Say to them "We are not going to let you steal from us again"

Mar 28, 2013 8:37PM
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No wonder there are very few homes & real estate for sale in Oregon for reasonable prices. The chart shows Oregon foreclosures that are not on the market at 50%. Smacks of real estate brokers & lending  agencies (banking) collusion to keep prices increasing on the market to me. Currently, there are few choices & high prices (same speculative prices before the bubble burst), and the sellers are sticking to the over inflated prices at the advice of the real estate brokers. Brokers earn their 3-6% cut of a real estate sale on the total cost, so naturally they want the prices to be as high as possible. The lending agencies (banks) are sitting on foreclosed inventory because if they put too many properities on the market all at once, the values will plummet to reality, rather than the inflated speculative prices we are saddled with currently. In any case, buyers are the ones that get the "got cha" out of the "American Dream" of home ownership.

Mar 28, 2013 8:13PM
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Some banks did not foreclose.  For instance BofA financed my sons home, his young wife died in the home almost 5 years ago.  He packed his clothes and his daughters clothes and walked out and never looked back...the home has never been foreclosed even though no payments were made after he left.  This is in Henderson, NV. I believe there are many homes in this area that have not been foreclosed. 
Mar 28, 2013 8:05PM
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Near $7,000,000,000,000.00 went out the back door from the Fed.Reserve in the last few years.  And who got the money?  The banks!  Not the people.  Not the Recession economy.  Maybe its finally time to Nationalize the Private Fed. Reserve Bank.  They hold approximately 30% of the government debt.  The banks are withholding Trillions of Dollars.  For what purpose?  There are two classes in this beautiful country:  1) The ruling elite who can buy 650 foreclosures at one time, and the 99% of us underrepresented.  The French bank of the West can do a modification in under 30-days.  Chase, B of A, Wells F. take years of processing while holding the majority of money.  Why?  Think!  Who has the power?  Who controls the economy?  Who is buying properties?  And who is still struggling?  In Dec. 23, 1913, the large NY Banks (Fed. Res.) took over the money supply of the U.S., and the IRS collects for them.  They are making TRILLIONS.  What are the people making?  The FED. RES. BANK IS NOT PART OF THE GOV'T.   Capitalism w/out Regulation ends up being nothing but EXPLOITATION.  Think we are prospering?  Think again!!!!

Mar 28, 2013 7:52PM
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" the number rose to 1.5 million in the first quarter of 2013"
That's around 3 million newly disenfranchised former hard working middle class citizens who are not going to be so trusting of their government ever again.
At that rate,  in another 15 quarter of this regimes stay,  tens of millions of 'good citizens'  will have been cut off at the knees.
Then what?
Mar 28, 2013 7:50PM
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All I hear is poor me, ,poor me,   But no talks about the young people and their greed,  All I can see is they want everything right now the fancy home and decor that has taken their grandparents a lifetime to accumulate, I agree that when the bread winner loses his or her job that the banks could re-arrange their loans to accommodate,  It is time to sell all things things that are not needed  or go to your own family for a bailout , not the taxpayers. We have done that with our children and grandchildren, we do not expect the government to do it for the family even if we all have to move in together 

Mar 28, 2013 7:47PM
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I see so many posts here about irresponsible homeowners...find something else you can afford, get off your a**es, etc. I must say that I have lived through a pre-foreclosure and can honestly say that we did everything...EVERYTHING to keep our home. When someone, although not everyone, buys a home, they can at that time afford the payments and have a savings account. But when there is a job loss that cuts your household income from $102k/yr to $45k/yr, what do you do? We had contacted our mortgage company BEFORE we were even late and asked them for assistance. ANY kind since we knew we were going to struggle. We had already readjusted our budget...got rid of all the extras, spent no more than $75/week on groceries (with 3 kids in our home). Gas at the time was over $4/gallon so that certainly didn't help. It was tight.
Our mortgage company says to us. "we would like to help you but there is nothing we can do until you are 3 months behind". WTH? Really?
We ran through all of our savings(over $10k) and a new job was found 6 months later at less than half the previous salary.
Eventually we got that 3 months behind. Then they only wanted to assist us by a repayment plan to pay more per month to catch up what was behind. Ummmmm, hellooooo? I had to file a complaint the Office of the Comptroller of US Currency and with our districts US Congressman to even get the paperwork for a modification. The bank stopped taking our payments, then while the modification was under review, they sent the loan to a foreclosure attorney, before telling us they would not approve the modification because it "is not in the best interest of the investor", (which is the USDA...interesting)
**I may be wrong here but I would think it would be in the best interest of the investor to help us to be able to make the payments, rather than short sale or foreclose on the home??**
This whole process ruined our credit...scores from 725 down to under 500. We are now in a bad situation again due to job loss...yet again (these are not being fired...layoffs-different co's). We have discussed selling and moving to somewhere we can afford, but unfortunately, the home is not valued at the amount we owe, nor can we pass a credit check because of the aforementioned issues with the mortgage co. So, tell me, what is a person to do, other than struggle through it and hope and pray that everything works out for the best?

Mar 28, 2013 7:34PM
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Movin' from the cave to the cardboard box. At least the rents cheaper than a Post Office Box, but they're shutin' down the post office too. Thanks Obama, can't wait until you get evicted from your home. Guess I'll see you chillin' on the streets of Chi-town.
Mar 28, 2013 7:30PM
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Who's the liar here?   Obama reported that home sales were soaring, while foreclosures are down.  Jez, I wish someone could explain this one to me.   Especially when I just was to the tax preparer, and was told that my mortgage interest ($4,200.00) was no longer deductible.  And I and my wife, live on a small pension and SSI?
Mar 28, 2013 7:28PM
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Did not you see it? The economy is getting better for the fifth year in a row. The recession is over and everything except that sequester is great. BUTT and its a big one, if we want to really see progress we need to tax the heck out of those rich people, excluding politicians, don't worry about jobs because we are going to hire a bunch more people with borrowed money from China. I know it sounds like a pyramid scheme but this is different because we don't actually use pyramids. As you might guess I think our president is a _________  fill in the blank. I don't really care about the Republicans because they are just as guilty. The only way you might get change is to vote third party. If that does not work then I guess it will be time to try something out of step with the recent past.
Mar 28, 2013 7:12PM
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Its a question that makes many of us appear evil. I can see no reason to help pay for someone elses home. If you can't afford the payments walk away and find a cheaper alternative. I don't believe that you would like to pay my bills and I don't want to pay for yours. With interest rates this low, anything is possible when it comes to financing your castle. There are those amongst us that raked yards, poured cement, shingled or anything that those who had money were willing to pay someone to do. Don't just give up and sit on your ****. Get out and make a little money and stay current. Remember, you need a home before a car. Wake up and pay your bills.

Mar 28, 2013 6:44PM
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Yes I agree that this world has come to calamity.  We the people have no voice anymore and we are being run over by the wealthy and the president!!!!!  No one cares about the middle class what is left of it!!!!!  They do not want a middle class any more, they only want wealthy and lower class and most of us are lower class!!!!!  We did not ask to suffer for every one else's mistakes.  We suffer with increased inflation and higher gas prices and no pay raises to cover the cost of this!!!!  We are just suppose to readjust our budgets to handle this.  Well that is hard to do with a mortgage and higher food prices and gasoline thru the roof.  So we starve ourselves and have no entertainment at all and reduce what bills we can and I have even started gardening and raising chickens for my own personal food source.  We will be back in the 1930's raising our one food and living off the land because we cannot afford to do anything else.  So the world is coming to an end and I really hate to see what our kids have to deal with in the near future!!!!!  So much for the dream of living in America!!!!  It has gone to s*** in a hand basket.  Poor kids who have to struggle now and later unless you were born with a silver spoon in your mouth.  That doesn't happen to most!!!!!  Sorry to be so pessimistic but that is what I see happening.
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call me different. i saved the money to build my house. i dont have a mortgage. try planning ahead. i know its different but i can't tell you how many people think my decision was a smart one

dr deb

Mar 28, 2013 6:18PM
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The great 2008 meltdown will be remembered right alongside the 1929 collapse. Both presided over by Republican presidents who swore the country would prosper as long as government stayed out of the way of business. How'd that work out?
Mar 28, 2013 6:06PM
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God, this is so sad. 
Worse yet hardly anyone seem to realize , IT'S OVER.
Oh yeah, don't forget April 15 is just around the corner !
Mar 28, 2013 5:53PM
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The inside deal with bank and real estate is unreal we the normal people cant  buy nothing. I just had that happen with the home next us they take of a picture of the outside and than take picture of the inside of a other home a say its that home. Than they hold all offers and have there friend come in with all cash offer and tell the bank its the only offer and god know who on the take in the bank its unreal!!!!!!!
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