RealtyTrac: Worst May Be Over for Foreclosure Epidemic

October 26, 2012

Foreclosures have fallen in about 62 percent of the country’s 212 largest metro markets in the third quarter, leading to more stability in the housing market recovery, RealtyTrac reports in its latest foreclosure report. 

What’s more, RealtyTrac reports that foreclosure activity in 58 percent of the major markets have fallen to below September 2007 levels. In some markets, foreclosures have decreased by 26 percent or more, such as in Detroit, Los Angeles, Phoenix, San Francisco, and San Diego. 

"Most of the nation's housing markets are past the worst of the foreclosure problem," says Daren Blomquist, RealtyTrac's vice president.

A few markets are still seeing foreclosures rising, however. For example, several Florida areas are seeing a jump. Foreclosures were up 64 percent in Palm Bay, Fla., up 43 percent in Tampa; and up 32 percent in Jacksonville, Fla. Florida is a “judicial state,” where foreclosures must get the court’s OK before they’re final. 

The majority of the nation’s highest foreclosure rates fall in California, Florida, Arizona, and Nevada. The only cities outside those states in the top 20 highest foreclosure rate list are Chicago, which has the ninth-highest foreclosure rate and has seen a 34 percent increase over year-ago levels in its foreclosures; and Atlanta, which is number 15 on the list. 

Stockton, Calif., continued to have the nation’s highest foreclosure rate, yet still had a 21 percent decline in foreclosures, RealtyTrac reports. 

Source: “Foreclosures Fall in 62% of U.S. Cities,” CNNMoney (Oct. 25, 2012)