RealtyTrac: Nat'l Foreclosures Up 17 Percent in 3Q

Jacqueline Gilbert | 10.30.06
According to their 3Q 2006 U.S. Foreclosure Market Report released today, RealtyTrac reported that 318,355 properties entered some stage of forelcosure nationwide, an increase of 17 percent from the previous quarter and a 43 percent increase from the third quarter in 2005.

James J. Saccacio, chief executive officer of RealtyTrac, states that hikes in interest rates and a slump in the market are two key factors to the 43 percent increase since third quarter 2005.

"What our third quarter research appears to be showing is that the first wave of adjustable rate mortgages is having a negative impact on the number of homes going into foreclosure," said Saccacio. "With the volume of these loans--more than $1 trillion of them due to adjust over the next 15 months--this is a trend that definitely bears watching."

By New Foreclosures

Posting as the the state with the highest foreclosure rate for the second straight quarter, Colorado reports one new foreclosure filing for every 127 households--2.9 times the national average. Nevada jumped from sixth highest rate in the second quarter to the second in the third quarter, reporting one new foreclosure for every 156 households--2.3 times the national average. Once seated with the ninth highest foreclosure rate nationwide for the second quarter, Florida stole Texas' ranking by coming in at third with one new foreclosure for every 182 households--nearly twice the national average.

Other states rounding out the nations top 10 for new foreclosures for the third quarter include Georgia, Michigan, Texas, Indiana, Utah, Ohio and Illinois.

By Total Foreclosures

A 55 percent increase in foreclosures launched Florida as the leading state with total foreclosure filings during the third quarter. Once holding the second set for the first two quarters of 2006, Texas moves down to the second place slot, reporting 39,363 properties in some stage of foreclosure. California rounded out at the nation's top three, reporting 37,317 properties in some stage of foreclosure for the three-month period.

Other states in the nation's top five ranks for total foreclosures in the third quarter: Michigan with 20,777 properties and Ohio with 19,748 properties.

RealtyTrac's quarterly U.S. Foreclosure Market Report provides the total number of homes entering some stage of foreclosure nationwide and by state. The total number for each month includes properties in all three phases of foreclosure: Pre-foreclosures--Notice of Default (NOD), and Lis Pendens (LIS); Foreclosures--Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and REO properties.