Foreclosure levels decrease 10% from year ago

Lenders completed the foreclosure process on 53,654 U.S. properties in July, a 1 percent decrease from the previous month and a 21 percent decrease from July 2011 — the 21^st consecutive month with a year-over-year decline in bank repossessions (REOs).

REO activity decreased annually in 38 states and the District of Columbia. Some of the biggest REO decreases were in Nevada (71 percent), Virginia (65 percent), California (44 percent), Georgia (39 percent), and Washington (35 percent) — all non-judicial foreclosure states.

California, Arizona, Florida post highest state foreclosure rates

California posted the nation’s highest state foreclosure rate in July despite an 11 percent decrease in foreclosure activity from the previous month and a 25 percent decrease in foreclosure activity from July 2011. One in every 325 California housing units had a foreclosure filing during the month, more than twice the national average.

Arizona foreclosure activity was also down on a monthly and annual basis, but the state still posted the nation’s second highest state foreclosure rate: one in every 346 housing units with a foreclosure filing during the month.

Florida’s foreclosure rate ranked third highest among the states in July, up from sixth highest in June thanks in part to a 14 percent month-over-month increase in foreclosure activity. A total of 25,534 Florida properties had a foreclosure filing in July, a rate of one in every 352 housing units and an increase of 14 percent from July 2011.

Along with Florida, the four other judicial foreclosure states with foreclosure rates in the top 10 all posted year-over-year increases in foreclosure activity in July: Illinois at No. 5 (one in every 385 housing units with a foreclosure filing); Ohio at No. 8 (one in every 528 housing units); South Carolina at No. 9 (one in every 536 housing units); and Indiana at No. 10 (one in every 665 housing units).

Along with California and Arizona, the other non-judicial foreclosure states with foreclosure rates in the top 10 all posted year-over-year decreases in foreclosure activity in July: Georgia at No. 4 (one in every 376 housing units with a foreclosure filing); Nevada at No. 6 (one in every 415 housing units); and Michigan at No. 7 (one in every 518 housing units).

Florida, Illinois, and Ohio cities register biggest increases among top 20 metros

California cities accounted for nine of the 20 highest foreclosure rates among metropolitan areas with a population of 200,000 or higher in July despite year-over-year decreases in foreclosure activity in all nine metro areas.

Despite a 17 percent year-over-year decrease in foreclosure activity, the Stockton, Calif., metro area posted the nation’s highest metro foreclosure rate in July. One in every 153 Stockton housing units had a foreclosure filing during the month, more than four times the national average.

Immediately following Stockton in the rankings were the California metro areas of Vallejo-Fairfield at No. 2 (one in every 185 housing units with a foreclosure filing); Riverside-San Bernardino-Ontario at No. 3 (one in every 187 housing units); and Modesto at No. 4 (one in every 195 housing units).

The Palm Bay-Melbourne-Titusville metro area in Florida ranked No. 5, with a foreclosure rate of one in every 214 housing units with a foreclosure filing during the month of July. A total of 1,261 properties in the metro area had a foreclosure filing in July, an increase of 287 percent from the previous month and an increase of 203 percent from July 2011.

Four out of the other five Florida metro areas with foreclosure rates in the top 20 posted increasing foreclosure activity both on a month-to-month and year-over-year basis. The only exception was Ocala, which ranked No. 19 (one in every 302 housing units with a foreclosure filing).

Foreclosure activity in Akron, Ohio, increased 66 percent from July 2011, boosting that city’s foreclosure rate to 13^th highest nationwide, while a 49 percent year-over-year increase in foreclosure activity helped the foreclosure rate in Rockford, Ill., to rank 12^th highest nationwide.