WASHINGTON (MNI) – The following is the text of the RealtyTrac’s
August 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 August 2012, which shows foreclosure filings – default
notices, scheduled auctions and bank repossessions – were reported on
193,508 U.S. properties in August, an increase of 1 percent from July
but down 15 percent from August 2011. The report also shows one in every
681 U.S. housing units with a foreclosure filing during the month.

“Bucking the national trend, deferred foreclosure activity boiled
over in several states in August,” said Daren Blomquist, vice president
of RealtyTrac. “In judicial states such as Florida, Illinois, New Jersey
and New York, this was a continuation of a trend we’ve been seeing for
several months now. The increases in Florida and Illinois pushed
foreclosure rates in those states to the two highest in the country –
supplanting the non-judicial states of Arizona, California, Georgia and
Nevada. Previous to August, the nation’s top two state foreclosure rates
have been from those four non-judicial states every month since December
2010.

“Meanwhile foreclosure activity in most non-judicial states stayed
on a downward trajectory in August, with a few exceptions,” Blomquist
continued. “Most notably, Washington state documented a 38 percent
annual increase in foreclosure activity in August after 16 straight
months of year-over-year declines. The rebounding activity in Washington
state is likely the result of lenders catching up with foreclosures
delayed by a state law that took effect in July 2011 and allowed
homeowners facing foreclosure to request mediation. This rebounding
pattern will likely be repeated in the coming months in other states
that have passed legislation delaying the foreclosure process.”

High-level findings from the report:

– Illinois posted the nation’s highest foreclosure rate, one in
every 298 housing units with a foreclosure filing. August was the first
month that Illinois has ranked No. 1 since RealtyTrac began issuing its
report in January 2005.

– Twenty states registered year-over-year increases in foreclosure
activity, led by judicial foreclosure states such as New Jersey, New
York, Maryland, Illinois and Pennsylvania.

– Foreclosure activity in the 24 non-judicial states and District
of Columbia combined decreased 31 percent annually, although 15
non-judicial states and DC posted monthly increases in foreclosure
activity, including Arkansas (61 percent), Utah (41 percent), Colorado
(25 percent) and Washington (23 percent).

– Following three straight months of year-over-year increases, U.S.
foreclosure starts in August decreased 13 percent from a 17-month high
in August 2011.

– U.S. bank repossessions (REO) in August decreased 2 percent from
the previous month and were down 19 percent annually – the 22nd
consecutive month with a year-over-year decline in REOs.

Foreclosure starts down after three straight monthly increases

Foreclosure starts – default notices or scheduled foreclosure
auctions, depending on the state – were filed for the first time on
99,405 U.S. properties in August, a 1 percent increase from July but
down 13 percent from August 2011, when foreclosure starts hit a 17-month
high.

Foreclosure starts increased annually in 18 states, including
Washington (143 percent), Pennsylvania (129 percent), Alabama (102
percent), New Jersey (101 percent) and New York (63 percent).

Other states with sizable annual increases in foreclosure starts
included Minnesota (42 percent), North Carolina (36 percent), Maryland
(29 percent), Florida (26 percent) and Illinois (18 percent).

States with some of the biggest annual decreases in foreclosure
starts included Oregon (89 percent), Nevada (64 percent), Utah (57
percent), Massachusetts (47 percent), California (42 percent), Arizona
(41 percent) and Georgia (31 percent). Recent legislation or court
rulings in Oregon, Nevada, Massachusetts, California and Georgia could
be contributing to a slowdown in those states.

Bank repossessions decrease annually for 22nd straight month

Lenders completed the foreclosure process on 52,380 U.S. properties
in August, a 2 percent decline from the previous month and a 19 percent
decrease from August 2011 – the 22nd consecutive month with a
year-over-year decline in bank repossessions.

REO activity decreased annually in 35 states and the District of
Columbia. Some of the biggest state REO decreases were in Nevada (76
percent), Oregon (57 percent), Virginia (56 percent), Washington (46
percent), Utah (46 percent), Massachusetts (43 percent), Pennsylvania
(43 percent), and Colorado (43 percent).

States with some of the biggest annual increases in REO activity
included Kentucky (44 percent), Illinois (41 percent), Wisconsin (32
percent) and Maryland (23 percent).

Illinois, Florida, California post highest state foreclosure rates

Illinois posted the nation’s highest state foreclosure rate in
August thanks to a 29 percent jump in overall foreclosure activity from
the previous month. A total of 17,781 Illinois properties had a
foreclosure filing in August, one in every 298 housing units and an
increase of 42 percent from August 2011. Illinois foreclosure activity
was up across the board – foreclosure starts increased 18 percent
annually, scheduled foreclosure auctions were up 116 percent annually,
and bank repossessions were up 41 percent annually. August marked the
eighth consecutive month where Illinois foreclosure activity increased
on a year-over-year basis.

Florida foreclosure activity in August increased on a
year-over-year basis for the seventh time in the last eight months,
helping the state post the nations’ second highest foreclosure rate: one
in every 328 housing units with a foreclosure filing. Florida
foreclosure starts increased 26 percent annually while scheduled
foreclosure auctions were up 4 percent and bank repossessions were up 12
percent.

Despite a 32 percent year-over-year decrease in overall foreclosure
activity in August – the ninth consecutive month with an annual decrease
– California still posted the nation’s third highest state foreclosure
rate. One in every 340 California housing units had a foreclosure filing
in August – twice the national average.

Other states with foreclosure rates among the nation’s 10 highest
were Arizona (one in every 360 housing units with a foreclosure filing),
Nevada (one in 402 housing units), Georgia (one in 431 housing units),
Ohio (one in 556 housing units), Michigan (one in 593 housing units),
Delaware (one in every 610 housing units) and Colorado (one in every 617
housing units).

Foreclosures increase from previous month in eight of 10
hardest-hit metros

Foreclosure activity in August increased from the previous month in
eight of the 10 cities with the nation’s highest foreclosure rates among
metropolitan areas with a population of 200,000 or more.

Foreclosure activity increased from the previous month in the
California cities of Modesto (14 percent), Merced (50 percent),
Bakersfield (62 percent), Fresno (178 percent) and Chico (87 percent).
In Merced, foreclosure activity increased 13 percent from August 2011
after 33 months of year-over-year decreases.

Other top 10 cities with an increase in foreclosure activity from
the previous month were Chicago (28 percent) and Rockford, Ill. (15
percent) and Miami (49 percent).

Modesto, Calif., posted the nation’s highest metro foreclosure
rate, one in every 172 housing units with a foreclosure filing in August
– nearly four times the national average – and the top seven metro
foreclosure rates were in California.

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

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