The good news for delinquent homeowners: Foreclosures are still down from a year ago.
The bad news: They’re heading up again—sharply and relentlessly. According to RealtyTrac and DSNews, Foreclosures nationwide have risen for three straight months, posting a seven percent increase from September to October. The higher numbers included new default notices, scheduled auctions, and bank repossessions—in other words, all phases of the foreclosure process.
The most dramatic figures emerge when one considers specific states. Here are the top five foreclosure states for October, in order:
- Nevada retained its position as foreclosure ground-zero, even with a decrease in filings of 34 percent, due to a new state law requiring more documentation by foreclosing parties.
- California default notices rose 17 percent since September—the highest level in a year.
- Florida saw 15,234 new default notices in October, a rise of 28 percent.
- Arizona saw total foreclosure activity rise almost 18 percent from September to October.
- Michigan default notices increased 13 percent over the previous month.
As we’ve pointed out, this ominous rise in activity can be good for the economy in the long run. It will definitely be good for short sales, as homeowners are forced to consider their options. The American housing market is sick; it won’t heal without some bitter medicine—and painful changes. Those of us who are in the business of helping homeowners complete short sales can feel proud to be part of the solution.