WASHINGTON (MNI) – The following is the second and final part of
the text of the RealtyTrac’s September U.S. Foreclosure Market Report
published Thursday:

Foreclosure starts reverse upward trend

First-time foreclosure starts, either default notices or scheduled
foreclosure auctions depending on the state’s foreclosure process, were
filed on 284,720 U.S. properties during the third quarter, an 8 percent
decrease from the second quarter and also an 8 percent decrease from the
third quarter of 2011.

Nationwide foreclosure starts decreased on an annual basis for the
second straight month in September following three straight months of
annual increases. Foreclosures were started on 87,066 U.S. properties
during the month, down 12 percent from August and down 15 percent from
September 2011.

September foreclosure starts decreased on an annual basis in 31
states, including California (45 percent decrease), Arizona (34 percent
decrease), Michigan (22 percent decrease), Georgia (21 percent decrease)
and Texas (19 percent decrease).

States with the biggest annual increases in foreclosure starts in
September included New Jersey (424 percent increase), Pennsylvania (134
percent increase), New York (95 percent increase), Washington (60
percent increase) and Florida (24 percent increase).

Florida, Arizona, California post top state foreclosure rates in
third quarter

Florida foreclosure activity in the third quarter increased 14
percent from a year ago, the third consecutive quarter with an annual
increase and boosting the state’s foreclosure rate to highest in the
nation. One in every 117 Florida housing units had a foreclosure filing
in the third quarter, more than twice the national average.

Florida’s foreclosure rate also ranked highest in the nation in
September, the first time since April 2005 that Florida has held the No.
1 spot. Florida foreclosure starts in September increased 24 percent
from a year ago – the 11th straight month with an annual increase – and
Florida bank repossessions (REO) increased 23 percent year over year –
the ninth straight month with an annual increase.

Arizona REOs in September increased 2 percent from a year ago, the
first year-over-year increase in Arizona REOs since November 2011, but
the state’s overall foreclosure activity was down on an annual basis
both in September and the third quarter thanks to big drops in
foreclosure starts. Despite those decreases, one in every 125 Arizona
housing units had a foreclosure filing during the third quarter – the
nation’s second highest state foreclosure rate.

California also posted a foreclosure rate of one in every 125
housing units with a foreclosure filing in the third quarter, but the
state’s foreclosure rate was slightly lower than that of Arizona,
ranking No. 3 among all states for the quarter. A total of 109,369
California properties had foreclosure filings during the quarter, the
highest of any state but still down from the previous quarter and a year
ago.

California foreclosure auctions and REOs in the third quarter both
increased from the previous quarter, but foreclosure starts (NODs)
dropped 19 percent from the previous quarter. California foreclosure
starts in September dropped to their lowest level since December 2006 –
a 69-month low.

Other states with foreclosure rates ranking among the top 10 in the
third quarter were Illinois (one in 126 housing units with a foreclosure
filing), Georgia (one in 151), Nevada (one in 158), Ohio (one in 197),
Michigan (one in 201), South Carolina (one in 215), and Colorado (one in
216).

Days to foreclose at record 382 days, legislation extends process
in some states

U.S. properties foreclosed in the third quarter took an average of
382 days to complete the foreclosure process, up from 378 days in the
previous quarter and up from 336 days in the third quarter of 2011. It
was the highest average number of days to foreclose going back to the
first quarter of 2007.

The average time to complete a foreclosure increased substantially
from a year ago in several states where recent legislation and court
rulings have extended the foreclosure process. These states included
Oregon (up 62 percent to 193 days), Hawaii (up 62 percent to 662 days),
Washington (up 62 percent to 248 days) and Nevada (up 42 percent to 520
days).

The average time to foreclose decreased from a year ago in 15
states, including Arkansas (down 49 percent to 199 days), Michigan (down
15 percent to 226 days), Maryland (down 9 percent to 541 days),
California (down 8 percent to 335 days), and New Jersey (down 4 percent
to 931 days).

New Jersey documented the second longest state foreclosure timeline
in the third quarter behind New York, where the average time to complete
a foreclosure was 1,072 days for properties foreclosed during the
quarter. Florida registered the third highest state foreclosure
timeline, 858 days – down slightly from 861 days in the previous quarter
– and Illinois registered the fourth highest state foreclosure timeline,
673 days.

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

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