NATIONAL FORECLOSURES INCREASED IN EVERY QUARTER OF 2005

RealtyTrac ^ | 1/23/2005 | Staff Writers

[ex-Texan]

U.S. FORECLOSURE MARKET REPORT

Nearly 847,000 Properties Enter Foreclosure During The Year; Florida, Colorado and Utah Post Nation’s Highest Foreclosure Rates.

Irvine, Calif. – January 23, 2006 – RealtyTrac™ (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released year-end data from its 2005 U.S. Foreclosure Market Report, which showed that 846,982 properties nationwide entered some stage of foreclosure in 2005, and a 25 percent increase in the number of new foreclosures from the first quarter to the fourth quarter.

RealtyTrac publishes the largest national database of pre-foreclosure and foreclosure properties, with more than 550,000 properties in nearly 2,000 counties across the country, and is the foreclosure data provider to MSN House & Home, Yahoo! Real Estate, AOL Real Estate and HomeGain.com.

“Overall U.S. foreclosure numbers climbed steadily over the course of the year, with more new foreclosures reported in every quarter,” said James J. Saccacio, chief executive officer of RealtyTrac. “This trend appears to be moving the real estate foreclosure market back to its historic levels.”

Saccacio noted that the number of 2005 foreclosures needed to be kept in context. “Even with almost 850,000 properties entering some stage of foreclosure across the country over the course of the year, this represents less than 1 percent of all U.S. households. And the increase in U.S. foreclosures from Q3 to Q4 was just below 5 percent.”

Report Highlights

• Despite a 29 percent decrease in new foreclosures from the first quarter to the fourth quarter, Florida documented the nation’s highest foreclosure rate and accounted for more than 14 percent of the nation’s new foreclosures in 2005. The state reported 121,843 properties entering some stage of foreclosure — 1.67 percent of the state’s households.

• New foreclosures in Colorado decreased 4 percent from the first quarter to the fourth quarter, but the state’s annual foreclosure rate ranked second highest nationwide thanks to consistently high foreclosure numbers throughout the year. A total of 29,630 Colorado properties entered some stage of foreclosure in 2005 — 1.62 percent of the state’s households.

• 1.5 percent of Utah households entered some stage of foreclosure in 2005, the nation’s third highest annual foreclosure rate. The state reported 11,536 properties entering some stage of foreclosure during the year, but new foreclosures dropped 27 percent from the first quarter to the fourth quarter.

• New foreclosures in Texas increased 54 percent from the first quarter to the fourth quarter, and the state documented the nation’s fourth highest annual foreclosure rate. A total of 115,643 Texas properties entered some stage of foreclosure in 2005 — 1.44 percent of the state’s households and more than 13 percent of the nation’s new foreclosures in 2005.

• Other states with foreclosure rates ranking among the 10 highest nationwide were Georgia, Arizona, Indiana, New Jersey, Ohio and Tennessee. All of these state documented annual foreclosure rates of at least 1 percent of total households and reported new foreclosures increasing from the first quarter to the fourth quarter

• Although their foreclosure rates ranked below the nation’s 10 highest, California, Illinois, New York and Michigan were among the 10 states reporting the most new foreclosures in 2005. California reported 61,563 properties entering some stage of foreclosure, and new foreclosures increased 16 percent from the first quarter to the fourth quarter. Illinois reported 46,723 properties entering some stage of foreclosure, and new foreclosures decreased 14 percent from the first quarter to the fourth quarter. New York reported 37,068 properties entering some stage of foreclosure, and the state reported more than twice as many new foreclosures in the fourth quarter as in the first quarter.

“Over the past few years, we’ve seen historically low mortgage rates, consistently escalating home prices and steady, strong employment,” Saccacio said. “This has translated into relatively low levels of foreclosure properties — particularly bank-owned properties. With interest rates rising and an apparent slowing of property valuations in most markets, we’ll be watching closely to see if there’s a material effect on the number of foreclosures in 2006.”

The RealtyTrac 2005 U.S. Foreclosure Market Report provides the total number of homes entering some stage of foreclosure nationwide and by state for each quarter of 2005. RealtyTrac’s report 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 Real Estate Owned, or REO properties (that have been re-purchased by a bank).

Search foreclosure market statistics nationwide and by state.

[ex-Texan]

Want to learn about predatory mortgages, mortgage fraud, loan serving fraud and illegal foreclosures? Yada, yada Nothing to see here. Nada por nada. Time to move on. Things may become very interesting this year. Many people who signed up for Option ARM loan, 'straight ARMs' and interest only loans may start to feel pressure. But what do I know, anyway? I'm just a geezer.

[MNJohnnie]

Gee how terrible of us to expect people to actually pay their bills. How utterly predatory of us.

[Toddsterpatriot]

Yada, yada Nothing to see here.

Click on the Yada, yada link, help ex-Texan pay his bills. You think this much whining comes for free?

[tx_eggman]

ex-Texan

Thankfully ...

[threeleftsmakearight]

Too many people paying too much for their homes...end of story.

[ExSES]

Gee how terrible of us to expect people to actually pay their bills. How utterly predatory of us.

While I agree, I certainly condemn the granting of mortgages to individuals with no real chance of ever being able to pay off their mortgages! Lenders (with guv'mint blessings) have financed homes at 125% of value with "Teaser Rates" for the first year or so! This sort of scheme only works for the duration of the value bubble then..., the "homeowner" walks away leaving the TAXPAYERS to ultimately "pick up the tab"!

I see numerous "bargains" in housing on the horizon at some point! I've been in these cycles before (unfortunately trying to relocate after a "burst bubble"). It ain't pretty but someone always wins by picking up the pieces! Unfortunately, it was never me.........

[DeaconRed]

George Bush did it.

[ark_girl]

All these people who borrowed to the gills a couple of years ago and then took out ARM loans or those interest only loans so they could buy more house than they could actually afford are having to start paying the piper.

The loans were predatory, but George Bush didn't tell people to take out loans like that. No reputable financial person out there that I saw encouraged people to take out loans like that...but folks sure enough did.

I feel for those folks, but you could see it coming a mile away. When I was getting my house, I knew people my age taking out those arm loans because they were assuming they'd only live in their house 5 years. They didn't take into account that the low interest rates would drive the housing prices up and sooner or later the interest rates would go, making it harder to upgrade if you were just able to squeeze into your house in the first place.

[caseinpoint]

Actually I am kind of hoping this might help me get rid of a truly annoying neighbor. They have been a thorn in the side of all their neighbors. They bought five years ago at $190K and have since refinanced four times, the last a few months ago to $425K. As both are on "disability", I don't think they can afford to ride the coming wave. Technically the house is worth it but they have really trashed the place and with the marketing softening in this area, they might be out of luck for their next refi. I feel kind of guilty for this kind of schadenfreude but it would be nice to see them leave.

[B4Ranch]

How can this be? The economy is doing just fabulous and the unemployment numbers are lower than ever before?





Yes, this is sarcasm but I just need to bitch slap the Bots one more time.

[Onelifetogive]

Although their foreclosure rates ranked below the nation’s 10 highest, California, Illinois, New York and Michigan were among the 10 states reporting the most new foreclosures in 2005.

Amazing! Even though their foreclosure rates are not the highest, the MOST POPULUS STATES had the most new foreclosures... Stunning!

</sarcasm*>

[L98Fiero]

"Yes, this is sarcasm but I just need to bitch slap the Bots one more time."

Slap them with what? Did you geniuses ever think that with record home-ownership will come record foreclosures? With record car sales come record repos. With I'm supposed to be surprized by that, or even worse, like you, think it reflects negatively on the President? Sorry, not gonna. Thankfully, God put alittle more brains in my head than that.

What is glaringly missing from this report, and your arguement, is whether or not RATES of foreclosure are higher or lower.

[ex-Texan]

Ameriquest just settled a predatory lending class action case for about $ 350 million. Just a drop in the bucket. This year foreclosures will probably go up every quarter again. Foreclosed properties impact local property value, increasing downward pressure on the housing market. Good buying opportunities are coming to your neighborhood very soon.

Just resist the temptation to refinance every two years and roll your credit cards and a new SUV into the deal. Yada, yada. It's not Bush's fault. Greenspan did it.

[Toddsterpatriot]

TAXPAYERS to ultimately "pick up the tab"!

Please explain how the taxpayer picks up the tab.

[doc30]

Despite a 29 percent decrease in new foreclosures from the first quarter to the fourth quarter, Florida documented the nation’s highest foreclosure rate and accounted for more than 14 percent of the nation’s new foreclosures in 2005. The state reported 121,843 properties entering some stage of foreclosure — 1.67 percent of the state’s households.

With the exponential rise in property insurance in FL, these numbers make sense. I know several people at work whoa re going to sell their homes because they cannot afford the thrid consecutive doubling of insurance rates. I bought three years ago and insurance was $500. It was just re-adjusted to $2000 per year and my agent told me it will double again before the summer. People making on 11-14 bucks an hour can no longer afford a home where they've lived most of their life. Interest only variable APR loans won't kick people in FL the way the insurance rates will. I'm glad I bought small just in case this happened.

[B4Ranch]

You can research the history further back if you wish to do so.

Below are foreclosure market statistics nationwide and by state:

State Name	Q1	Q2	Q3	Q4	TOTAL	% change from 2004
US 2005	188,122	201,358	223,224	234,278	846,982	24.54
Alabama	799	1,845	958	360	3,962	-54.94
Alaska	268	420	381	333	1,402	24.25
Arizona	5,896	7,577	7,000	6,366	26,839	7.97
Arkansas	1,806	2,998	4,303	2,143	11,250	18.66
California	15,887	13,504	13,768	18,404	61,563	15.84
Colorado	6,779	7,862	8,470	6,519	29,630	-3.83
Connecticut	1,456	2,601	1,470	4,202	9,729	188.60
Delaware	119	113	61	30	323	-74.79
District of Columbia	10	58	47	40	155	300.00
Florida	34,651	30,812	31,829	24,551	121,843	-29.15
Georgia	8,388	7,841	11,203	10,881	38,313	29.72
Hawaii	200	211	2,634	161	3,206	-19.50
Idaho	936	684	569	556	2,745	-40.60
Illinois	12,094	11,894	12,366	10,369	46,723	-14.26
Indiana	7,254	7,209	7,728	8,304	30,495	14.48
Iowa	466	451	452	735	2,104	57.73
Kansas	440	520	414	531	1,905	20.68
Kentucky	1,349	1,758	1,043	819	4,969	-39.29
Louisiana	1,155	1,364	831	496	3,846	-57.06
Maine	50	29	34	26	139	-48.00
Maryland	667	881	1,692	1,448	4,688	117.09
Massachusetts	616	1,165	735	1,843	4,359	199.19
Michigan	4,411	7,222	9,953	11,937	33,523	170.62
Minnesota	486	571	509	676	2,242	39.10
Mississippi	339	850	440	280	1,909	-17.40
Missouri	2,039	2,425	2,807	3,038	10,309	49.00
Montana	179	179	261	285	904	59.22
Nebraska	367	303	670	730	2070	98.91
Nevada	1,950	1,798	1,644	2,331	7,723	19.54
New Hampshire	33	29	49	33	144	0.00
New Jersey	6,482	9,165	5,991	13,487	35,125	108.07
New Mexico	1,254	2,061	1,721	2,247	7,283	79.19
New York	5,299	9,937	9,084	12,748	37,068	140.57
North Carolina	4,170	4,194	3,466	4,086	15,916	-2.01
North Dakota	68	53	19	24	164	-64.71
Ohio	8,547	9,901	14,961	16,435	49,844	92.29
Oklahoma	3,131	3,543	3,476	3,348	13,498	6.93
Oregon	2,099	1,771	1,554	1,431	6,855	-31.83
Pennsylvania	5,083	7,827	7,089	8,651	28,650	70.20
Rhode Island	9	18	9	3	39	-66.67
South Carolina	2,229	2,079	1,332	1,966	7,606	-11.80
South Dakota	55	49	52	41	197	-25.46
Tennessee	4,739	5,594	8,114	6,095	24,542	28.61
Texas	24,127	21,176	33,289	37,051	115,643	53.57
Utah	3,484	2,749	2,775	2,528	11,536	-27.44
Vermont	15	16	11	18	60	20.00
Virginia	380	388	868	956	2,592	151.58
Washington	4,214	4,375	3,287	2,989	14,865	-29.07
West Virginia	165	202	425	227	1,019	37.58
Wisconsin	1,434	1,036	1,247	1,404	5,121	-2.09
Wyoming	48	50	70	47	215	-2.08

[finnman69]

Just read about another old lady getting the shock of her life as her FL home insurance is up to $2000.

Insurance companies will adjust upwards.

[RockinRight]

Been going on in blue states for years!

Blue States: Spend $400,000 for a single-wide trailer in San Francisco, get shot on your front porch.

Red States: For $175,000 you get a sprawling 4 bedroom ranch, 4 acres, clean air and a great view.

[stuartcr]

Didn't those cheap loans, in part, account for the booming economy?