Inventories of bank-owned "REO" homes in five western states now tracked by ForeclosureRadar were up 18.1 percent in August compared to a year ago, but the number of properties in the foreclosure process showed more modest 2.9 percent growth over the same period.
ForeclosureRadar’s monthly reports, previously confined to California, now cover Arizona, Nevada, Oregon and Washington. The reports break down foreclosure filings and inventories by state, county, city and ZIP code.
In its August report, ForeclosureRadar was tracking 436,698 homes that were in the foreclosure process in five states, each having been scheduled for sale at auction or hit with a notice of default. Another 171,099 homes were in lenders’ REO inventories, having failed to attract acceptable bids at auction.
Lenders in ForeclosureRadar’s coverage area repossessed 24,071 homes in August, 31.3 percent fewer than during the same month a year ago, while sales to third parties were up 18.9 percent from a year ago, to 5,475.
Loan servicers canceled 26,305 foreclosures — a 72 percent increase from a year ago — in most cases after negotiating a loan modification or a short sale.
States with the biggest REO inventories were California (108,000 homes, up 8.3 percent from a year ago) and Arizona (32,771 homes, up 60.5 percent from a year ago). REO inventories were essentially flat from a year ago in Nevada, totaling 15,856 homes, but up 67.9 percent in Washington (to 9,973 homes), and 64.6 percent in Oregon (to 4,499 homes).
California also had the most homes in the foreclosure process — 278,000, down 6.7 percent from a year ago — followed by Nevada (73,634), Arizona (57,066), Washington (15,861) and Oregon (12,137).
At the state level, notice of default filings were up 16.6 percent from July to August in California, to 31,120. It was the fourth consecutive monthly increase in notice of default filings, although the number of filings remained 16 percent below levels seen at the time last year.
Foreclosure cancellations in California were down 11.2 percent from July, to 16,828, but up 68.5 percent from a year ago. Lenders took back 14,369 California homes in August — a 20.3 percent increase from July, but about the same number as a year ago. Sales to third parties grew 5.8 percent from a year ago, to 3,472.
In Arizona, where notice of trustee sales start the foreclosure process and sets an auction date, auction notices were down 12.2 percent from July and 20.3 percent from a year ago, to 10,128.
The 57,066 homes scheduled for sale represented a 6.6 percent increase from a year ago, and inventories of bank-owned homes continued their steady climb, rising 4.8 percent from July to August.
Notices of default filed by loan servicers in Nevada fell 7.5 percent from July to August, to 6,682, representing a 41.8 percent decrease from the year before. Notices of foreclosure sales were also down 3.3 percent from July, to 5,651, down nearly 30 percent from the same month in 2009.
But the total number of homes that had entered the foreclosure process but not yet been scheduled for sale climbed 23.8 percent from July to August, to 61,041, a 79.4 percent increase from a year ago. The number of homes scheduled for sale in Nevada was up 2 percent from July, to 12,593, but down 21.2 percent from a year ago.
Foreclosure cancellations totaled 2,934 — up 8.1 percent from July and 109.7 percent from a year ago, outnumbering bank repossessions (2,061, down 13.9 percent from a year ago) and sales to third parties (599, up 33.1 percent from a year ago).
Loan servicers in Oregon filed 2,158 notices of default in August, up 10.7 percent from July and 12.5 percent from a year ago. Notices of trustee sale were up 9.26 percent from July to August, to 1,959, a 45 percent increase from a year ago. Lenders took back 759 homes, a 78.6 percent increase from a year ago, while sales to third parties fell nearly 27 percent, totaling only 46 homes.
In Washington state, ForeclosureRadar found notices of trustee sale were down 15.8 percent from July to August, to 3,598, an increase of nearly 82 percent from a year ago. Lenders took back 1,529 homes, 10.3 percent less than in July but a 107.5 percent increase from a year ago.
Sales to third parties were down 15.6 percent from July to August, to 157 homes, compared with 113 sales during the same month a year ago.