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%


Mar 28, 2013 5:50PM
Whatever happened to the bank's side of the deal for all that bailout money?  They promised to help people in trouble with their loans.  But instead, they increased the number of foreclosures.  It's because the wealthy run this country and write laws for the wealthy.  They have out-priced government positions from the average American making the top positions in our country only available to the wealthy.  So get ready for them to take more from you and put it into their own pockets.
Mar 28, 2013 5:49PM
This is all so hard to believe.  Pinnochio , I mean Obama has done so much to fix this economy , that this story must be another lie that the press prints to keep things interesting .  Surely our president wouldn't lie to us !  I think it's time that the people of this country take a stand and fight to fix and keep it free before the Obama dictatorship runs it into the ground.   I forgot, he said he was going to rebuild it from the ground up.  So he needs to run it into the ground before he can rebuild it !  Lets fix our country, Step one : Impeach the bum in office !
Mar 28, 2013 5:46PM
Go you tube  Bush and the affordable home act speech he gave everyone should be able to own a home and they would help them, all the politicians are crooks. Bama just another one.
Mar 28, 2013 5:37PM
Foreclosures were never down...wake up America - you've been duped by Obama
Mar 28, 2013 5:34PM
"If I can't get this economy turned around I don't deserve to be re-elected". Anyone remember whose quote this was?
Mar 28, 2013 5:26PM
Real estate agents and their industry associates, and real estate bankers and the real estate associates are reading these posts. Then they are giving "thumbs down" to indicate their deceitful disagreements. More "thumbs down" are pretensive indicators of ignorance of the operations of the real estate industry. The claims would be to maintain that there are little manipulations and little entrapments in their sordid deals. Some people want homes where they can rest their wary heads in comfort. But they wake into nightmares when they realise their homes are bad investments. Some are terminated from their jobs or suffer tragedies at inopportune moments. Others make ignorant decisions based on greed and manipulation. The real estate industry and the government by taxation will crush any unfortunate soul that falls under this steam roller. 
Mar 28, 2013 5:11PM
Robo signing?  The real question is...  We're they making the borrowers aking the payments?  No?  Jeez...  We are the **** nation!
Mar 28, 2013 5:10PM

Thanks to America politicians and greedy businesses outsourcing our jobs. All part of the plan to transition into the new United Socialists of America plan. I'm sure the journalist must know that those who are purchasing these depressed properties are our communist comrades from China.

In God I trust, who else is there?

Mar 28, 2013 5:05PM

I ahve tried to go for bank owned houses...the listing agents dont respond back or say that it is already under contract wheres no sign for the under contract goes up for weeks...


The listing agents are colluding with bank officials to unload the houses at low cost to theri friends or family; or they are making money off those. There needs to be investigation and proper procedure followed. These guys are turning bids away and not taking offers.

Mar 28, 2013 4:43PM
Real estate agents are still churning out foreclosed properties. Have you read the story of the millionaire who bought all 650 foreclosed homes at auction in Macomb, Michigan?  What does he plan to do with all these homes? Other buyers were not given any opportunity to buy a single home. The millionaire claims that he is going to donate some of the houses. He stinks of greed. Why buy these houses to donate a few? The real estate industry is loaded with manipulators. In New York, real estate agencies are churning over non-substantial houses. Single family houses are bought at $200,000 to $250,000, then they are churned for $375,000 to $400,000. These homes are not worth the selling price or the buying price. Sellers invest at least $25,000 to $40,000 in renovations which can spread to a claim of $100,000 or more to deceive buyers that the houses have extreme value. Some of these homes are mice-infested with poor wiring. Appliances and other household apparatuses are exchanged to bring an appearance of refined decor. Add plaster and paint, the house has the appearance of high-end renovation. A sucker is sneered in these traps. Debts will mount and the re-sale is repeated at higher prices. The seller wants to profit on his investment and the buyer does not want to lose on his investment. What profit shall a man gain by manipulation and entrapment? All may seem right, but the soul runs afoul of the precepts and percepts of spiritual knowledge.
Mar 28, 2013 4:34PM

No wonder, residential property taxes keep going up and up ever since states stopped receiving federal money, and in turn, cities and towns stopped receiving state money. 

Meantime large banks are working behind the scenes in gobbling up properties whose owner have long since paid off mortgages, but cannot afford taxes,and  the cost of living. Those banks of course get to write off taxes on those properties they now gobble up. This is nothing short  of criminal.

Mar 28, 2013 4:30PM
Who are we kidding here folks?  Top 5 Banks manipulated the foreclosures by buying a little bit of time using the word "modifications"  which was never there to begin with.  Now the home owners are in worst shape than they were before since they are deep  "underwater"  lot more than they bargain for.  Now comes the double whammy "THE KILL"  You take someone's home for half the price and bid on it with 10 to 20 % more to compete with other buyers still making a kill.  NEW AMERICAN DREAM thanks to our own banks bailed out by OUR own Money!
Mar 28, 2013 4:27PM
What we were told this was fixed...and some actually believed it was getting better...but the true economic indicators don't look quite so well.
Mar 28, 2013 4:24PM

Well, here we go again.........greedy investors buying up the market, inflating the home values and then dumping homes to the real home owners who only want the dream of home ownership, only to find out that that dream has once again turned into a nightmare.

And how about the lenders who are manipulating the system by steering unqualified borrower to obtain that golden credit score; then, save, beg or borrow enough money to finally "qualify" for a home that God forbid they have anything go wrong with the house and it needs repairs( after the purchase).  Guess who will not have enough money to repair the house and make that mortgage payment.  Sometimes it is best that you take the proper steps to work hard, save money, get your financial household in order, before you meet with that realtor.

Mar 28, 2013 4:18PM
Absolutely no surprise here.  No jobs; foreclosures up.  More people on food stamps in this country than ever in history.  The welfare state by the welfare president.
Mar 28, 2013 4:17PM
what not here the good old US of A the market is kicking **** right now and everyone is of food stamps and everyone is working and no one owns firearms anymore.
Mar 28, 2013 3:56PM
BUT BUT BUT...I thought the market had rebounded and happy days were here again!!!!  I mean all the articles about how to over bid against investorsand pay 10-30% more than listing prices....and be prepared for those bad appraisers who are just out to queer your deal with a "low" appraisal...I mean just because no houses have sold for anywhere near the excessive upbidded price you've choosen to pay ....geezzzz...sound like '04-05 all over again??  
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