IRVINE, Calif. – Compared with August 2007, the number of foreclosure actions rose nearly 50 percent last month in Rhode Island but fell sharply in Massachusetts, according to a report today by real estate data publisher RealtyTrac Inc. Nationwide, August foreclosures rose by more than 25 percent.
In the Ocean State, 494 foreclosure actions were reported in August: two notices of default, 375 foreclosure sale notices and 173 real estate owned (REO) properties foreclosed and repurchased by the bank. That represented an 11.34-percent increase from July (READ MORE) and a 48.25-percent increase from August 2007.
In Massachusetts – one of the first states to target distressed homeowners for assistance (READ MORE) – 1,117 foreclosure actions were reported in August: 393 default notices, 1,202 notices of sales and 831 REOs. That represented a decline of 32.12 percent compared with July and 46.41 percent from a year ago.
Nationwide, the number of total foreclosure actions rose to a record 303,879 in August – including 119,059 default notices, 93,927 sale notices and 90,893 REOs – although the year-over-year increase slowed to 26.69 percent last month from July’s year-over-year gain of 55.12 percent. Compared with the month before, foreclosures rose 11.65 percent after rising 7.85 percent in July.
“In August, the total number of U.S. properties that received foreclosure filings, as well as the national foreclosure rate, were both the highest we’ve seen in any month since we began issuing our report in January 2005,” RealtyTrac CEO James J. Saccacio said in a statement today.
“However, the annual increase of 27 percent was actually substantially lower than in previous months this year, when it was hovering around 50 to 65 percent,” Saccacio said. He cited “a big spike in activity last August – particularly in default activity. Over the past few months, we’ve seen annual increases in default activity and auction activity moderating, and that trend continued in August,” he added.
“The increases in default and auction activity could be slowing down partly as the result of new legislation passed in several states that is designed to give homeowners in distress more time before foreclosure proceedings are initiated,” as well as new loan-servicing guidelines at some lenders that also aim to help avert foreclosure, Saccacio said. “The question now is whether these measures will actually reduce foreclosures or simply cause a temporary lull.”
Last month’s average foreclosure-sales rate nationwide – excluding default or auction sale notices – worsened to one for every 416 households, from July’s one in 464. Rhode Island had the nation’s 19th highest rate in August, worsening from 22nd in July, with one foreclosure last month for every 817 households. The Bay State improved to No. 29 nationwide, from 20th the month before, with an August rate of one foreclosure for every 1,117 households.
Nevada remained No. 1 for the 20th consecutive month, as its foreclosure rate worsened to one for every 91 households, from July’s one in 106. California remained No. 2, worsening to one foreclosure for every 130 households. Arizona returned to No. 3, while Florida (third last month) returned to No. 4. Next were Michigan, Georgia, Ohio and Colorado – all of which saw foreclosure activity decline compared with July – followed by Illinois and No. 10 Indiana.
RealtyTrac Inc. is a publisher of data and advice for real estate markets nationwide. To learn more, visit www.RealtyTrac.com.
