–Retransmitting Text Headlined 00:01 ET Thursday

WASHINGTON (MNI) – The following is the text of the RealtyTrac’s
July U.S. Foreclosure Market Report published Thursday:

RealtyTrac (www.realtytrac.com), the leading online marketplace for
foreclosure properties, today released its U.S. Foreclosure Market
Report for July 2012, which shows foreclosure filings – default notices,
scheduled auctions and bank repossessions – were reported on 191,925
U.S. properties in July, a decrease of 3 percent from the previous month
and a decrease of 10 percent from July 2011. The report also shows one
in every 686 U.S. housing units with a foreclosure filing during the
month.

“U.S. foreclosure activity continued its uneven descent in July as
the overall numbers declined on an annual basis for the 22nd straight
month, but properties starting the foreclosure process increased on an
annual basis for the third straight month,” said Daren Blomquist, Vice
President of RealtyTrac. “Recent foreclosure activity patterns vary
significantly from state to state, often hinging on the level of
dysfunction that exists in each state’s foreclosure process. In states
like Florida, Illinois and New Jersey, where processing and procedural
issues slowed foreclosure activity to a crawl last year, foreclosure
numbers continue to rebound off those artificially low levels. But in
states like Texas, Arizona and Virginia, where the average time to
foreclose is well below the national average of 378 days, foreclosure
activity continues on a long-term downward trend.

“Recent legislation and court rulings could lengthen the
foreclosure process in some of the states with the shorter timelines,
however, resulting in a temporary foreclosure lull and subsequent
rebound in those states as well,” Blomquist continued. “Case in point is
a new Oregon law that took effect in July and gives homeowners in
default – or at risk of default – the right to request mediation to
avoid foreclosure. Oregon foreclosure activity dropped 42 percent from
June to July, hitting a five-year low, but we would expect the Oregon
numbers to trend back higher sometime in the next several months based
on the pattern we’ve seen in other states with similar legislation.”

High-level findings from the report:

– Overall foreclosure activity decreased on a year-over-year basis
for the 22nd consecutive month in July, dropping to its lowest level
since April.

– The decline in overall foreclosure activity was driven primarily
by a 21 percent year-over-year decrease in bank repossessions, or REOs.

– Thirty-eight states and the District of Columbia posted annual
decreases in REO activity, but there were some notable exceptions where
REO activity increased annually, including Florida (38 percent), Ohio
(25 percent), Illinois (22 percent), and New Jersey (21 percent) – all
judicial foreclosure states where foreclosures are processed through the
court system.

– U.S. foreclosure starts in July increased 6 percent on a
year-over-year basis, the third straight month with an annual increase
in foreclosure starts following 27 consecutive months of decreasing
foreclosure starts on an annual basis.

– Foreclosure starts increased on a year-over-year basis in 27
states, led by Connecticut (201 percent), New Jersey (164 percent),
Pennsylvania (139 percent), Indiana (83 percent), and Massachusetts (65
percent) – all judicial foreclosure states.

Foreclosure starts increase annually for third straight month

Foreclosure starts – default notices or scheduled foreclosure
auctions, depending on the state – were filed on 98,174 U.S. properties
in July, a 6 percent decrease from June but still up 6 percent from July
2011.

Foreclosure starts increased annually in 27 out of the 50 states –
16 “judicial” states where foreclosures are processed through the court
system and 11 “non-judicial” states where foreclosures are processed
outside of the court system.

Along with the aforementioned judicial states with substantial
annual increases in foreclosure starts, the non-judicial states with the
biggest year-over-year increases were New Hampshire (55 percent),
Missouri (39 percent), Alabama (35 percent), Washington (30 percent),
and Georgia (25 percent).

Bank repossessions decrease annually for 21st straight month

Lenders completed the foreclosure process on 53,654 U.S. properties
in July, a 1 percent decrease from the previous month and a 21 percent
decrease from July 2011 – the 21st consecutive month with a
year-over-year decline in bank repossessions (REOs).

REO activity decreased annually in 38 states and the District of
Columbia. Some of the biggest REO decreases were in Nevada (71 percent),
Virginia (65 percent), California (44 percent), Georgia (39 percent),
and Washington (35 percent) – all non-judicial foreclosure states.

California, Arizona, Florida post highest state foreclosure rates

California posted the nation’s highest state foreclosure rate in
July despite an 11 percent decrease in foreclosure activity from the
previous month and a 25 percent decrease in foreclosure activity from
July 2011. One in every 325 California housing units had a foreclosure
filing during the month, more than twice the national average.

Arizona foreclosure activity was also down on a monthly and annual
basis, but the state still posted the nation’s second highest state
foreclosure rate: one in every 346 housing units with a foreclosure
filing during the month.

Florida’s foreclosure rate ranked third highest among the states in
July, up from sixth highest in June thanks in part to a 14 percent
month-over-month increase in foreclosure activity. A total of 25,534
Florida properties had a foreclosure filing in July, a rate of one in
every 352 housing units and an increase of 14 percent from July 2011.

Along with Florida, the four other judicial foreclosure states with
foreclosure rates in the top 10 all posted year-over-year increases in
foreclosure activity in July: Illinois at No. 5 (one in every 385
housing units with a foreclosure filing); Ohio at No. 8 (one in every
528 housing units); South Carolina at No. 9 (one in every 536 housing
units); and Indiana at No. 10 (one in every 665 housing units).

Along with California and Arizona, the other non-judicial
foreclosure states with foreclosure rates in the top 10 all posted
year-over-year decreases in foreclosure activity in July: Georgia at No.
4 (one in every 376 housing units with a foreclosure filing); Nevada at
No. 6 (one in every 415 housing units); and Michigan at No. 7 (one in
every 518 housing units).

Florida, Illinois, and Ohio cities register biggest increases among
top 20 metros

California cities accounted for nine of the 20 highest foreclosure
rates among metropolitan areas with a population of 200,000 or higher in
July despite year-over-year decreases in foreclosure activity in all
nine metro areas.

Despite a 17 percent year-over-year decrease in foreclosure
activity, the Stockton, Calif., metro area posted the nation’s highest
metro foreclosure rate in July. One in every 153 Stockton housing units
had a foreclosure filing during the month, more than four times the
national average.

Immediately following Stockton in the rankings were the California
metro areas of Vallejo-Fairfield at No. 2 (one in every 185 housing
units with a foreclosure filing); Riverside-San Bernardino-Ontario at
No. 3 (one in every 187 housing units); and Modesto at No. 4 (one in
every 195 housing units).

The Palm Bay-Melbourne-Titusville metro area in Florida ranked No.
5, with a foreclosure rate of one in every 214 housing units with a
foreclosure filing during the month of July. A total of 1,261 properties
in the metro area had a foreclosure filing in July, an increase of 287
percent from the previous month and an increase of 203 percent from July
2011.

Four out of the other five Florida metro areas with foreclosure
rates in the top 20 posted increasing foreclosure activity both on a
month-to-month and year-over-year basis. The only exception was Ocala,
which ranked No. 19 (one in every 302 housing units with a foreclosure
filing).

Foreclosure activity in Akron, Ohio, increased 66 percent from July
2011, boosting that city’s foreclosure rate to 13th highest nationwide,
while a 49 percent year-over-year increase in foreclosure activity
helped the foreclosure rate in Rockford, Ill., to rank 12th highest
nationwide.

** MNI Washington Bureau: 202-371-2121 **

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