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Home Foreclosures Spike In October


IRVINE, CA—Single-family home foreclosures made a surprising 27% monthly jump in October, ATTOM Data Solutions said Thursday. The firm’s report for the month shows shows a total of 105,481 US properties with foreclosure filings, including default notices, scheduled auctions or bank repossessions. That follows a 129-month low in September but is still down 8% on a year-over-year basis.

“While some states are still slogging through the remnants of the last housing crisis, the foreclosure activity increases in states such as Arizona, Colorado and Georgia are more heavily tied to loans originated since 2009, after most of the risky lending fueling the last housing boom had stopped,” says Daren Blomquist, SVP with ATTOM. “The increase in October isn’t enough evidence to indicate a new foreclosure crisis emerging in these states, but it certainly demonstrates that this housing recovery is not completely devoid of risk.”

In the current recovery, the loans that appear to be most susceptible to foreclosure are “those such as FHA and VA with low down payments,” Blomquist continues. “Our data shows FHA and VA loans combined represent 49% of all active foreclosure inventory for loans originated in the seven years ending in 2015. By comparison, FHA and VA loans represent only 12% of all active foreclosure inventory among loans originated in the previous seven-year period, from 2002 to 2008.”

October marked the 13th consecutive month where residential foreclosure activity decreased on a Y-O-Y. However, ATTOM says the month-over-month increase in October was the biggest monthly increase since August 2007.

Running counter to the national trend, 28 states and the District of Columbia posted Y-O-Y increases in overall foreclosure activity for October. They included New York (up 10%), Pennsylvania (up 20%), Ohio (4%), Georgia (22%), Virginia (15%), Massachusetts (11%), Arizona (17%), Indiana and Wisconsin (3% each) and Colorado (64%).

A total of 43,352 US properties began the foreclosure process in October, up 25% from the previous month, yet still down 11% from the year-ago period. October represented the 16th consecutive month with a Y-O-Y decrease in foreclosure starts, but at the same time, the monthly increase was the biggest since December ’08.

Twenty-three states and the District of Columbia posted Y-O-Y increases in foreclosure starts. They included New York, up 15%; Ohio, up 34%; Virginia, up 15%;  Arizona, up 48%; and Colorado, up 71%.


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