IRVINE, CA--(Marketwired - Aug 14, 2014) - RealtyTrac® (www.realtytrac.com), the nation's leading source for comprehensive housing data, today released its U.S. Foreclosure Market Report™ for July 2014, which shows foreclosure filings -- default notices, scheduled auctions and bank repossessions -- were reported on 109,434 U.S. properties in July, an increase of 2 percent from the previous month but still down 16 percent from a year ago. The report also shows one in every 1,203 U.S. housing units with a foreclosure filing during the month.

"July was the 46th consecutive month where U.S. foreclosure activity was down on a year-over-year basis," said Daren Blomquist, vice president at RealtyTrac. "After nearly four years of falling foreclosures, we are starting to see evidence that foreclosure numbers are normalizing at the national level. The 16 percent decrease in July was exactly half the annual decrease we saw a year ago in July 2013, when U.S. foreclosure activity was down 32 percent on a year-over-year basis.

"The number of state and local markets with persistent foreclosure problems is becoming fewer and farther between, although there were some surprise spikes in foreclosure activity in July in markets that had previously been experiencing long-term downward trends in foreclosure activity," Blomquist noted. "For example, Houston foreclosure activity jumped 66 percent in July compared to a year ago following 23 consecutive months of decreases, and Los Angeles foreclosure activity was up 10 percent from a year ago following 31 consecutive months of decreases."

Other high-level findings from the report:

A total of 49,624 U.S. properties started the foreclosure process for the first time in July, a 5 percent increase from the previous month, but still down 18 percent from a year ago -- the 24th consecutive month with a year-over-year decrease in U.S. foreclosure starts.





Despite the annual decrease nationally, foreclosure starts increased from a year ago in 14 states, including Nevada (up 128 percent), Texas (up 29 percent), New York (up 17 percent), Massachusetts (up 12 percent), and Michigan (up 6 percent).





A total of 51,595 U.S. properties were scheduled for foreclosure auction in July, up 10 percent from the previous month but still down 3 percent from a year ago. Non-judicial foreclosure auctions -- those in states not requiring a judge to file a judgment for the foreclosure auction to proceed -- increased 26 percent from June to July, but were still down 7 percent on a year-over-year basis.





Despite the annual decrease nationally, scheduled foreclosure auctions increased from a year ago in 20 states, including New Jersey (up 105 percent), Oregon (up 50 percent), Louisiana (up 32 percent), Utah (up 30 percent), Connecticut (up 18 percent), and New York (up 16 percent).





A total of 25,937 U.S. properties were repossessed by lenders via foreclosure (REO) in July, down 4 percent from the previous month and down 30 percent from a year ago to the lowest level since April 2007.





Despite the decrease nationally, bank repossessions increased from a year ago in seven states, including Maryland (up 77 percent), California (up 22 percent), Oregon (up 13 percent), and New Jersey (up 12 percent).





Rising foreclosure activity bucks national trend in five of 20 largest metro areas

Foreclosure activity increased from a year ago in five of the nation's 20 most populous metropolitan statistical areas, contrary to the national trend.

The Houston metro area posted the biggest annual increase in foreclosure activity from a year ago among the 20 largest metro areas, up 66 percent. The increase in Houston came on the heels of 23 consecutive months of decreasing foreclosure activity on an annual basis and was driven primarily by a 116 percent jump in scheduled foreclosure auctions -- the first public notice starting the foreclosure process in Texas.

Washington, D.C., documented the second highest annual increase in foreclosure activity in July, up 24 percent from a year ago. July marked 14 of the last 17 months where DC metro area foreclosure activity has increased on an annual basis.

Due to rebounding bank repossessions (REOs), Southern California metro areas posted annual increases in foreclosure activity following 31 consecutive months of decreasing activity on a year-over-year basis. San Diego overall foreclosure activity increased 12 percent from a year ago after seeing a 40 percent jump in REOs; Los Angeles overall foreclosure activity increased 10 percent from a year ago thanks to a 58 percent jump in REOs; and Riverside-San Bernardino foreclosure activity increased 3 percent from a year ago because of a 27 percent jump in REOs.

Among all 212 metropolitan statistical areas with a population of 200,000 or more, one-third (69) posted increasing foreclosure activity from a year ago while two-thirds (143) posted decreasing foreclosure activity from a year ago.

"Just a few years ago foreclosures and short sales were a necessary part of the real estate market. Today this is no longer the case," said Greg Smith, owner/broker of RE/MAX Alliance, covering the Denver, Colo. market, where foreclosure activity decreased 15 percent from a year ago and the foreclosure rate ranked 139th out of the 212 metro areas ranked in the report. "Because of strong property appreciation and more conservative lending requirements, we are seeing very few properties go through the foreclosure process and many homeowners are no longer upside down removing the need for a short sale."

"The housing market is coming back slowly," said Sheldon Detrick, CEO of Prudential Detrick/Alliance Realty, covering the Oklahoma City and Tulsa, Okla. markets, which had foreclosure rates ranking No. 76 and 66 respectively in July despite an increase in activity from the previous month. "We do not have distressed properties in the market like we used to and our REO inventory continues to go down."

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