The number of U.S. properties for which a foreclosure filing was
received surged 46% in March from a year earlier, helping push the
first quarter's figure up 24%, as many lenders and servicers again
executed foreclosures as influence from foreclosure prevention
efforts by the U.S. government waned.
The figures were the highest monthly and quarterly totals since
online foreclosure concern RealtyTrac began issuing its report in
2005.
Chief Executive James J. Saccacio noted much of the activity was
new foreclosure actions, meaning "many lenders and servicers were
holding off on executing foreclosures due to industry moratoria and
legislative delays."
In fact, JPMorgan Chase & Co. (JPM), Wells Fargo & Co.
(WFC), Fannie Mae (FNM) and Freddie Mac (FRE) all have said they
have increased foreclosure activity in recent weeks after lifting
internal moratoriums that temporarily halted foreclosures.
Foreclosure filings - default notices, auction sale notices and
bank repossessions (REOs) - were reported on 803,439 properties in
the first quarter, up 9% from the fourth quarter and resulted in
one in every 159 U.S. housing units receiving one. For just March,
RealtyTrac said the total was 341,180 properties, up 17% from the
previous month.
The troubles in the residential sector are expected to continue
throughout 2009, and not surprisingly, much of the pain is coming
from former bubble markets that are now dominating RealtyTrac's
report.
Nevada, Arizona and California posted the highest foreclosure
rates in the quarter, with Nevada being hit the hardest as one in
every 27 housing units received a foreclosure filing. The rate in
Arizona was one in 54, while the figure was one in 58 in
California.
Those three Western states along with Illinois and Florida
accounted for nearly 60% of the nation's foreclosure activity in
the first quarter.
The filings increases for the month and quarter came even as
bank repossessions fell sequentially. Saccacio attributed that to
potential processing delays, rather than foreclosure prevention
plans. "It's very likely that we'll see the number of REOs increase
again now that most of the moratoria has been lifted," he
added.
On a positive note, Saccacio said demand is up in some of the
harder-hit regions, as first-time homebuyers and investors seek
bargains. But he noted it is unlikely the increase will offset the
growing number of foreclosures in the pipeline, accelerated by
rising unemployment rates.
-By John Kell, Dow Jones Newswires, 201-938-5285, john.kell@dowjones.com