ForeclosureS.com: Foreclosure Filings Take Double-Digit Drop in April

SACRAMENTO, Calif.--(BUSINESS WIRE)--Foreclosures filings dropped significantly across the country last month. Just under 100,000 pre-foreclosures and notices of pending foreclosure auctions were filed nationwide in April, down 14.3 percent from the almost 115,700 filings in the previous month, according to the latest numbers from ForeclosureS.com, a California-based real estate investment advisory firm and publisher of foreclosure and property information.

“Now they’re paying the ultimate price of overextended credit—foreclosure. The region likely won’t see a serious drop in foreclosures for many months.”

Another nearly 40,000 properties were taken back by lenders—known as REO or bank-owned real estate filings—in April, also down 14 percent from March numbers.

“Foreclosure filing numbers remain up for the year to date, but last month’s double-digit decline is positive news in an industry already reeling from the subprime lending debacle and a slowdown in home construction, sales, and price appreciation,” says Alexis McGee, president of ForeclosureS.com and author of the upcoming book, “The Foreclosures.com Guide to Investing: Making Huge Profits Investing in Pre-Foreclosures Without Selling Your Soul” (John Wiley, September 2007).

On a per capita basis, Nevada led the nation in pre-foreclosure filings for April with 3.1 for every 1,000 of its households. Arizona and Nevada tied for the dubious No. 1 auction-filings spot with 1.3 filings per 1,000 households, and Colorado led the nation in REO or bank-owned filings with its 1.9 per 1,000 households in the state. That’s based on numbers and analysis of the more than 2 million property listings available at ForeclosureS.com.

Looking at more numbers as of May 1, at all three stages of the foreclosure process the number of filings nationwide dropped in April from March:

    --  Pre-Foreclosures (initial notice that the property is now in
        foreclosure for an unpaid secured lien or loan): 59,241
        filings in April, down 16 percent from 70,315 in March.
    --  Auctions (notice that an auction sale date has been set
        because the unpaid secured lien or loan remains unpaid):
        40,107 in April, down 12 percent from 45,375 in March.
    --  REOs/Bank-owned real estate (notice that the foreclosure has
        gone to auction and the property has transferred to the
        winning bidder or reverted to the lender): 39,391 in April,
        down 14 percent from 45,553 in March.

“Only time will tell for sure, as April’s numbers most likely don’t signal a trend—at least not yet,” says McGee. “Remember that a big chunk of today’s foreclosures are a result of the subprime mortgage mess—too-easy credit, creative financing, and generally granting loans to people who couldn’t afford them. Until all those overextended homeowners work through their financial problems, foreclosure numbers overall will continue to rise.”

Also important to recognize is that foreclosures aside, the nation’s underlying economics remain strong, adds McGee. “Interest rates are low and dropping, the economy is holding on and housing demand is still strong—Census Bureau numbers show 111.1 million households currently with 114.8 million projected in 2010. Combine that with tightened lending standards in the wake of the subprime market shakeout, and there is light at the end of our housing slowdown tunnel,” adds McGee.

Even the National Association of Realtors predicts positive market movement ahead despite its dismal report last month that nationally existing home sales fell 8.4 percent in March, the largest one-month decline since January 1989 and accompanied by a yet another month of median home prices dropping, adds McGee.

Let’s look closer at the Year-to-date numbers from ForeclosureS.com:

    --  California led the nation in pre-foreclosures with 65,208
        filings or 5.7 per 1,000 homeowners, and also in auction
        filings with 33,045 or 2.9 out of every 1,000 households.
    --  Texas led the nation in REO filings with 19,399 or 2.6 for
        every 1,000 households. That's up 22 percent from the same
        time period last year. On a per capita basis among states with
        the most REO filings, Colorado led with 8.1 REO filings for
        every 1,000 of its households.
    --  The Top Counties in terms of numbers of pre-foreclosure
        filings:
        --  Los Angeles, California: 12,533 or 4 per 1,000 households,
            up 97 percent from 6,367 for the same period a year ago.
        --  Cook, Illinois: 9,005 filings or 4.6 per 1,000 households,
            up 53 percent from a year earlier.
        --  Miami-Dade, Florida: 8,684 filings or 11.2
            pre-foreclosures for every 1,000 households in the state.
            That's up 103 percent from 2006 numbers.
        --  Clark, Nevada: 8,601 filings or 16.8 per 1,000 households,
            up 136 percent from a year ago.
        --  Riverside, California: 8,106 filings or 16 per 1,000
            households in the state for April, up 176 percent from a
            year ago numbers.
    --  Looking at the Top 20 counties for pre-foreclosures, eight
        counties are in California, seven in Florida, two in Colorado,
        and one each in Illinois, Texas, and Nevada.
    --  Counties leading the nation in auction filings are:
        --  Maricopa, Arizona 6,501 filings or 5.7 per 1,000
            households year-to-date, up 119 percent over the same time
            in 2006.
        --  Dallas, Texas: 6,279 filings or 7.8 per 1,000 households
            in the state, up just 8 percent from the same time last
            year.
        --  Los Angeles, California: 6,242 filings or 2 per 1,000
            households, up a whopping 217 percent from the same time
            last year.
        --  Cook, Illinois: 4,485 filings in April or 2.3 per capita,
            up 33 percent from 2006.
        --  Tarrant, Texas: 4,483 filings or 8.4 per capita, up 14
            percent from year-to-date 2006
    --  Counties leading in numbers of REOs include:
        --  Harris, Texas: 5,092 filings or 4.2 per capita
            year-to-date, up 106 percent from the same time last year.
        --  Wayne, Michigan: 3,709 filings or 4.8 per capita, down 12
            percent from a year ago.
        --  Cook, Illinois: 3,523 filings or 1.8 per 1,000 households,
            up 20 percent from 2006.
        --  Cuyahoga, Ohio: 3,267 filings or 5.7 per capita, up 80
            percent over the same time a year earlier.
        --  Dallas, Texas: 2,971 filings or 3.7 per 1,000, also down
            12 percent from a year ago.
    --  Among counties with the most REO filings, a number had
        triple-digit increases in filings:
        --  Los Angeles, California: up 304 percent
        --  Clark, Nevada: up 207 percent
        --  Oakland, Michigan: up 121 percent
        --  Riverside, California: up 311 percent
        --  Maricopa, Arizona: up 575 percent.
        --  San Diego, California: up 534 percent.

(For Media Access Only: To gain access to the details of what’s happening with foreclosures and housing markets in your area, please visit http://www.ForeclosureS.com/www/pages/pressinquiry.asp and check out its new and expanded foreclosure filing statistics. You can customize your search and analysis with just a mouse click.)

MORE FORECLOSURE FILINGS BY REGION:

Southwest Region

(Includes Arizona, California, Colorado, Nevada, New Mexico, Oklahoma, Oregon, Texas, Washington)

The nation’s Southwest faces a long road to foreclosure recovery as the region yet again far surpassed the rest of the nation across the board in numbers of foreclosure filings in April.

Pre-foreclosure and auction filings totaled 42,462 last month, accounting for more than four out of 10 of all filings nationwide. Another 16,354 properties were lost to foreclosure and ended up as REO or lender-owned real estate, according to new numbers and analysis from ForeclosureS.com’s expanded database that includes more than 2 million property listings.

On a brighter note, however, and somewhat mirroring the national picture, the total numbers of filings for the region were down from March—pre-foreclosures off 19%; auctions down 22 percent, and REOs off 11 percent.

“Because the Southwest is home to some of the nation’s highest average housing costs, many people in the past have relied heavily on creative adjustable-rate mortgages and financing to afford the American Dream of homeownership,” says Alexis McGee. “Now they’re paying the ultimate price of overextended credit—foreclosure. The region likely won’t see a serious drop in foreclosures for many months.”

California, a perennial leader in the foreclosure numbers game, topped the nation with 16,192 pre-foreclosures in April, but that’s down 16 percent from March’s 19,237 filings. The state also led in auction filings with 8,022, off almost 25 percent from March

Colorado, another national and regional standout in terms of high filings over the past months, also saw pre-foreclosure filings drop significantly—31 percent.

Consider a few more western region numbers from ForeclosureS.com’s expanded database covering 1,336 major counties in the United States:

    --  San Joaquin County, California led the nation with a 1,056
        percent increase in number of REO filings year-to-date 2007
        vs. 2006 (659 filings).
    --  In more year-to-date numbers, 172,852 property owners in the
        region have faced foreclosure so far this year. Add to that
        another 60,517 homeowners--as in REO filings--in the region
        who actually lost their homes to foreclosure.
    --  Among the western region's counties hit hardest by
        foreclosures year-to-date include:
        --  Texas--Dallas (6,279 auction filings), Tarrant (4,483
            auction filings), and Harris (5,092 REO filings).
        --  California--Riverside (8,106 pre-foreclosure filings,
            4,302 auction filings, and 2,265 REOs), San Diego (1,799
            REOs, up 534 percent; 3,044 auction filings, up 315
            percent, and 5,316 pre-foreclosures, up 135 percent), San
            Bernardino (6,093 pre-foreclosures), Los Angeles (12,533
            pre-foreclosure filings, up 97 percent, and 2,830 REO
            filings, up 304 percent), Sacramento (pre-foreclosures up
            197 percent; auctions up 383 percent, and REOs up a
            whopping 989 percent).
        --  Nevada--Clark (8,601 pre-foreclosure filings, up 136
            percent; 3,554 auctions, up 232 percent).
        --  Arizona--Maricopa (6,501 auction filings 5.7 out of every
            1,000 households in the state), Mohave (1,298 REOs, up 947
            percent).
        --  Colorado--Arapahoe (2,501 pre-foreclosure filings or 13.1
            per 1,000 households, and 2,244 REOs or 11.8 per capita),
            Adams (2,022 REOs or 15.8 per capita), Denver (2,034
            REOs).

Midwest Region

(Includes Illinois, Indiana, Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North Dakota, Ohio, South Dakota, Wisconsin)

The foreclosure numbers news from the Midwest last month was a mixed bag. Pre-foreclosure filings for the region, which includes foreclosure-plagued Cook County, Illinois (Chicago), fell 6 percent to 8,182 in April from March. Total auction filings--the second step in the foreclosure process--climbed 17 percent. But REOs—a reflection of the numbers of foreclosure that have been completed—dropped 19 percent for the month to 11,177.

Year-to-date the picture was more dismal as compared with the same time a year ago. Region-wide, pre-foreclosure filings (28,789) were up 87 percent; auction filings (18,976) climbed 275 percent, and REOs (47,196) were up 23 percent for the year

“The region’s manufacturing and farming economy just can’t seem to shake the foreclosure grip,” says Alexis McGee, president and co-founder of ForeclosureS.com, a California-based real estate investment advisory firm and publisher of foreclosure and property information. “Layoffs and economic woes have left too many of the Midwest’s homeowners overextended and without many options to losing their homes. Metropolitan areas like Chicago; Toledo and Cleveland in Ohio; Detroit, Michigan, and St. Louis, Missouri, especially feel the pinch.”

On a national basis, only California and Florida surpass Illinois in numbers of pre-foreclosures year-to-date (16,768 filings). On the better-news side, however, REO filings (6,102 year-to-date) in the state were up just 8 percent, dropping the state to ninth place from sixth place in the numbers nationally.

Consider a few more Midwest region numbers from ForeclosureS.com’s expanded database covering 1,336 major counties in the United States:

    --  Lucas County, Ohio, which includes Toledo and its surrounding
        area, is among the Top 20 counties nationwide with the biggest
        percentage increase in REO filings year-to-date 2007 vs.
        2006--277 percent (1,688 filings vs. 448 the same time last
        year). It is, however, the only county in the region that made
        that list.
    --  The Top Five counties in the Midwest region with the most
        pre-foreclosure filings year-to-date include:
        --  Cook, Illinois: 9,005 filings, up 53 percent for the same
            time last year.
        --  Milwaukee, Wisconsin: 1,410 filings, up 5 percent from a
            year ago.
        --  Will, Illinois: 1,287 filings, up 37 percent from a year
            ago.
        --  Lake, Illinois: 979 filings, up 38 percent from a year
            earlier.
        --  Kane, Illinois: 946 filings, up 79 percent.
    --  The above counties, except for Milwaukee, Wisconsin, also top
        in terms of the most auction filings in the Midwest
        year-to-date 2007 vs. 2006:
        --  Cook, Illinois: 4,485 filings, up 33 percent.
        --  Will, Illinois: 696 filings, up 62 percent.
        --  Lake, Illinois: 560 filings, up 80 percent.
        --  Kane, Illinois: 504 filings, up 54 percent.
        --  DuPage, Illinois: 497 filings, up 52 percent.
    --  When it comes to REO filings, only Cook County makes the list
        of counties with the most filings in the region year-to-date
        2007 vs. 2006:
        --  Wayne, Michigan: 3,709 filings, down 12 percent from the
            same time last year.
        --  Cook, Illinois: 3,523, up 20 percent.
        --  Cuyahoga, Ohio: 3,267 filings, up 80 percent over
            year-to-date 2006.
        --  Oakland, Michigan: 2,428 filings, up 121 percent.
        --  Marion, Indiana: 1,980 filings, down 1 percent from 2006
            at the same time.

Southeast Region

(Includes Alabama, Arkansas, Florida, Georgia, Kentucky, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, West Virginia)

The Southeast is known for its sunshine, but the tens of thousands of foreclosures every month threaten to cloud the region’s skies for months to come.

Last month alone 24,013 homeowners in the region faced foreclosure. Another 9,128 lost their homes after lenders foreclosed and the properties became bank or lender-owned real estate. So far this year, a total of more than 89,100 homeowners have had to deal with foreclosure, and another 47,197 properties reverted back to lenders, according to ForeclosureS.com’s new and expanded database with more than 2 million property listings nationwide.

Florida easily leads the region with its mega foreclosure problems. A total 12,049 pre-foreclosure filings were recorded in April, another 3,364 auction filings, and 2,370 REOs or bank-owned real estate filings. On the positive side, however, those numbers were down across the board—pre-foreclosures off 27 percent, auctions down 29 percent, and REOs down 9 percent.

But don’t expect an early end to Florida’s foreclosure woes, says Alexis McGee, president of ForeclosureS.com and author of the upcoming book, “The Foreclosures.com Guide to Investing: Making Huge Profits Investing in Pre-Foreclosures Without Selling Your Soul” (John Wiley, September 2007). “Homeowners in the state have a tough road ahead. Consider that while existing home sales dropped 8.4 percent nationally in March according to National Association of Realtors number, they plummeted 28 percent in Florida during the same time period as reported by the Florida Association of Realtors,” adds McGee. “That’s a lot of catching up for Florida’s real estate markets.”

Beyond the Sunshine State, Georgia, North Carolina, Tennessee, and even Virginia had their share of foreclosure issues, too. “Resort and other coastal areas in the Southeast have been hit hard by foreclosures, but so have big manufacturing centers in states like North Carolina, Tennessee, and Georgia,” says McGee. “Even Arkansas, though its actual numbers of filings are low, has some counties with relatively high numbers on a per capita basis,” says McGee.

Pulaski County, Arkansas, for example, which includes the state’s capital of Little Rock, recorded only 701 auction filings so far this year, but that’s 4.7 filings per 1,000 households in the county, according to numbers from ForeclosureS.com.

Looking closer at few more southeast region numbers from ForeclosureS.com:

    --  Despite lower month-to-month numbers, year-to-date, the
        Southeast recorded a 149 percent increase in pre-foreclosure
        filings, a 200 percent increase in auction filings, and a 28
        percent increase in REO filings.
    --  Brevard County, Florida, with a 645 percent increase in number
        of auction filings year to date 2007 vs. 2006 led the nation
        in percent increase (477 vs. just 64 filings).
    --  Lee County, Florida led the nation with a 1,899 percent
        increase in number of pre-foreclosures filed year-to-date 2007
        vs. 2006 (3,279 vs. 164 filings).
    --  North Carolina's 1,853 pre-foreclosure filings last month were
        off 27 percent from March., in REOs in April

Northeast Region

(Includes Connecticut, Delaware, District of Columbia, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, Vermont)

The nation’s Northeast is the bright spot across a country littered with foreclosures. As a region, it had the fewest foreclosures nationally last month—10,356 pre-foreclosure filings, 4,331 auction filings, and 2,339 REO filings.

That’s good news for a region already well on the way to rebounding from the foreclosure crisis, says Alexis McGee, author of the upcoming book, “The Foreclosures.com Guide to Investing: Making Huge Profits Investing in Pre-Foreclosures Without Selling Your Soul” (John Wiley, September 2007). “Though much of the region is heavy on population and manufacturing, it never quite sunk as deep into the foreclosure morass. Home prices didn’t have as fast and as out-of-control a run-up and its lenders were a bit more conservative in granting credit. That means the Northeast can recover quicker,” McGee adds.

That doesn’t mean, however, that more homeowners in the region won’t escape foreclosure now and in the future. In fact New Jersey led the region in pre-foreclosures with 3,324 filings in April, up 32 percent from March. New York took second place with 2,625 pre-foreclosure filings, up only 5 percent from a month earlier.

In April auction filings, Massachusetts led with 1,813, up 76 percent. Pennsylvania was second with 1,476 filings, down 12 percent. The state had the most REOs in the region with 1,043 filings, down 13 percent from March. New York was a distant second with just 595 filings, but up 169 percent over March numbers.

Year-to-date for the region, Massachusetts (10,277 filings) had the highest pre-foreclosure filings per capita—4.2 per 1,000 of its households. By the numbers, New Jersey had the most pre-foreclosure filings, 11,145.

Pennsylvania led the region with 5,678 auction filings year-to-date, up 100 percent from the same time period last year. Massachusetts trailed with 4,245 filings, up 169 percent, followed by New Jersey with 1,717 filings, up 3,477 percent over a year ago.

Looking at a few more northeast region numbers, from ForeclosureS.com’s database of more than 2 million properties:

    --  Year-to-date, 6,888 properties in the region ended up REO, up
        14 percent from the same time a year earlier.
    --  Pennsylvania led in REO filings year-to-date with a total
        3,074, followed by New York with 1,293 filings, and New Jersey
        with 1,066 filings.
    --  Monroe County, New York, which includes the city of Rochester
        with its international businesses and manufacturers, is among
        the counties nationwide with the biggest percentage increase
        in REO filings year-to-date 2007 vs. 2006 --273 percent (757
        filings vs. 203 the same time last year).
    --  On a percent change basis, Passaic County, New Jersey, part of
        the New York metropolitan area and including Paterson, takes
        the No. 2 spot nationally with a 361 percent increase in
        pre-foreclosure filings year-to-date 2007 vs. 2006. Its
        numbers still remain low, however--just 595 filings.
    --  Counties in the region hardest hit by pre-foreclosures
        include:
        --  Suffolk, New York, 1,795 filings to date 2007--3.8 per
            every 1,000 households in the county--up 32 percent from
            year-do-date 2006.
        --  Middlesex, Massachusetts: 1,610 filings, up 119 percent
            from 2006.
        --  Worcester, Massachusetts: 1,578 filings, up 125 percent
            from 2006 numbers, and representing 5.6 out of every 1,000
            households.
        --  Kings (Brooklyn), New York: 1,559 filings, up 45 percent
            over the same time last year.
        --  Nassau, New York: 1,435 filings, up 46 percent over a year
            earlier.
    --  Those counties that top the region in terms of number of REO
        filings include:
        --  Monroe, New York; 757 filings year-to-date 2007, up 273
            percent from the same period in 2006.
        --  Delaware, Pennsylvania: 655 filings, up 48 percent from
            the same time last year.
        --  Philadelphia, Pennsylvania: 441 filings, down 51 percent
            from a year earlier.
        --  Baltimore City, Maryland: 393 filings, up 22 percent from
            the same time in 2006.
        --  Westmoreland, Pennsylvania: 322 filings, up 36 percent
            over January to April 2006 numbers.

About ForeclosureS.com: Finally there’s a solid information source that provides an accurate picture of exactly what’s happening in the nation’s housing and foreclosure markets, and not just lump-sum all the foreclosure numbers that can sensationalize the data. Sacramento-based ForeclosureS.com, publisher of foreclosure property information for more than two decades, has more than 2 million listings of current foreclosure filings covering more than 1,340 major U.S. counties. Statistics, per capita data, and analysis is available by region, state and county and by foreclosure notice type (pre-foreclosures, auctions, and REOs) exclusively for the media. Get the details for your market area by visiting http://www.foreclosures.com/www/pages/pressinquiry.asp. For additional assistance please contact Kristy Boyd at [e-mail].