U.S. foreclosure activity edged up in the third quarter, marking the first quarterly increase in three years, according to housing data provider RealtyTrac.
In its U.S. Foreclosure Market Report for September and the third quarter, RealtyTrac noted the uptick as foreclosure rates hit a new eight-year low last month. The report showed that foreclosure filings reported on more than 300,000 properties in the third quarter were down 16 percent from a year ago, but up 0.42 percent from the previous quarter — the first quarterly increase since the third quarter of 2011.
The increase in foreclosure activity was driven by a 2 percent increase in default notices and a 7 percent quarterly increase in scheduled foreclosure auctions, RealtyTrac said. Bank repossessions decreased 12 percent from the previous quarter.
Nearly 107,000 properties had foreclosure filings in September, down 9 percent from the previous month and 19 percent from a year ago to the lowest level since July 2006 — a 98-month low. September marked the 48th consecutive month that foreclosure activity decreased on a year-over-year basis, the firm said.
“September foreclosure activity was back to pre-housing bubble levels nationwide, in large part thanks to a continued slide in bank repossessions,” RealtyTrac Vice President Daren Blomquist said. “However, a recent rise in scheduled foreclosure auctions in many markets across the country shows lenders are continuing to clean house of lingering delinquent loans. This rise in scheduled auctions foreshadows a corresponding rise in bank repossessions and auction sales to third party buyers in the coming months.”
According to the report, the states with the five highest foreclosure rates in the third quarter were Florida, Illinois, Maryland, Nevada and New Jersey. Metropolitan statistical areas with the five highest foreclosure rates in the third quarter were Atlantic City, N.J.; Macon, Ga.; and Ocala, Orlando and Palm Bay-Melbourne-Titusville, Fla.