Foreclosure Rates Down Across US

The total number of foreclosure filings across the United States declined significantly in 2011 to the lowest levels in four years, before the effects of the economic downturn and recession kicked in, foreclosure lister RealtyTrac said in a report on Wednesday, Jan. 11.

In all, there were 2.6 million instances of submitted foreclosure filings, default notices, bank repossessions, or scheduled auctions in the past year, according to the report. The foreclosure activity affected 1.9 million properties across the United States, a 34 percent decrease from year 2010 figures.

Foreclosure activity was 33 percent below 2009 numbers and 19 percent below 2008, RealtyTrac added.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” said Brandon Moore, the CEO of RealtyTrac, in a statement.

Moore added that there was a “lack of clarity” surrounding legal issues and documents in the foreclosure industry. This means that there is “a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages,” he added.

The states with the highest rates of foreclosure were Nevada, California, and Arizona, the report found.

In Nevada, at least 1 in 16, or 6 percent, of housing units had at least one filing last year, meaning that it has the highest foreclosure rate in the United States for the fifth consecutive year. Like the rest of the country, however, Nevada also saw a decrease in foreclosures, dropping 31 percent in 2011 over the previous year.

Arizona, in second place with a 4.14 percent foreclosure rate on all housing units, saw a 28 percent drop in foreclosure activity. California was in third place, with a 3.19 percent foreclosure rate.

Out of the top 20 metropolitan areas, 10 California cities had the highest foreclosure rates. Most of the cities, which include Stockton, Modesto, and Merced are located in the Central Valley, which has experienced a generally high unemployment rate since the economic downturn began several years ago.