Foreclosure Activity Drops to Lowest Level Since 2005

Before you go, we thought you'd like these...
Before you go close icon

By Alex Veiga
LOS ANGELES -- While foreclosures remain a concern in select states, the number of U.S. homes entering the path to foreclosure or winding up repossessed by lenders has fallen to levels not seen in more than six years. The trend is the latest sign foreclosures are becoming less of a national factor on the housing recovery and more of a state and metropolitan-area concern.

states with most foreclosures
Lenders initiated foreclosure action against 52,826 U.S. homes in November, down 10 percent from the previous month and a drop of 32 percent from November last year, according to new data from foreclosure listing firm RealtyTrac Inc. The last time the tally of monthly foreclosure starts was lower was in December 2005, the firm said.

Foreclosure starts increased last month on an annual basis in 15 states, including Pennsylvania, Delaware, Maryland and Oregon. While fewer homes entered the foreclosure pipeline in November, the number of homes completing the foreclosure process also declined.

All told, lenders took back 30,461 homes last month, down 19 percent from October and a decline of 48 percent from November last year, RealtyTrac said. Overall, completed foreclosures sank to the lowest level since July 2007, the firm said.

The number of homes repossessed by banks increased on an annual basis in only five states: Delaware, Maryland, Connecticut, Maine and Iowa -- all states where the courts must sign off on foreclosures, a factor that typically draws out the process longer than in other states. Some of the decline in foreclosure activity last month was due to a seasonal slowdown as the end of the year draws near. That could mean a bump in homes sold at auction or repossessed by banks early next year, said Daren Blomquist, a vice president at RealtyTrac.

"Regionally and locally, there are going to be some jumps in foreclosure numbers in 2014, but nothing we anticipate will threaten the housing recovery," Blomquist said. "It's very safe to say that the foreclosure crisis is over and behind us."

The decline in foreclosures has come about as more homeowners are keeping up with their mortgage payments. At the same time, the U.S. housing market has emerged from a deep slump, aided by rising home prices, steady job growth and fewer troubled loans dating back to the housing-bubble days. At the end of November, 734,205 U.S. homes were in some stage of the foreclosure process, down 24 percent from a year earlier. Another 503,577 homes were bank-owned, but not yet sold. That's down from 18 percent from November last year, the firm said.

Some 70 percent of all homes in some stage of foreclosure are tied to mortgages that were taken out between 2004 and 2008. At their monthly pace through the first 11 months of the year, completed foreclosures are on track to total 470,000 this year, down 30 percent from last year, Blomquist said.
Foreclosures peaked in 2010 at 1.05 million and have been declining ever since.

At the state level, Florida had the highest foreclosure rate in the nation last month, with 1 in every 392 households in some stage of foreclosure. Even so, the number of homes in the state that entered the foreclosure process fell 46 percent from a year ago, while homes taken back by lenders declined 16 percent. Rounding out the top 10 states by foreclosure rate were Delaware, Maryland, South Carolina, Illinois, Ohio, Connecticut, Nevada, Iowa and Utah.

10 States With the Most Foreclosures
See Gallery
Foreclosure Activity Drops to Lowest Level Since 2005

Price: $7.9 million

Address: 10 Edgewater Drive, Coral Gables, Fla. 33133

The listing for this penthouse brags of "spectacular unobstructed views of Biscayne Bay, Atlantic Ocean, and the city."

See more photos of this home for sale in Coral Gables.

Price: $1,999,900

Address: 8390 W. Windmill Lane, Las Vegas, Nev. 89113

This six-bedroom, 11-bathroom hacienda-style home is part of a 4-acre equestrian estate that includes a covered riding arena, hay barn and stables.

See more photos of this home for sale in Las Vegas.

Price: $3,890,000

Address: 703 Abell Ridge Circle, Towson, Md. 21204

Described in its listing as a "historic and architecturally significant Beaux Arts manor home, meticulously restored to its original grandeur," it not only has six bedrooms and eight bathrooms, but 10 fireplaces.

See more photos of this  home for sale in Towson.

Price: $624,900

Address: 1253 N. Bosworth Street Chicago, Ill., 60642

This duplex penthouse "in the heart of West Town" is touted by its listing as a Fannie Mae HomePath property that can be purchased with a 3 percent down payment.

See more photos of this home for sale in Chicago.

Price: $545,000

Address: 2600 Bexley Park Road, Columbus, Ohio 43209

This 4,573-square-foot home in Ohio's capital has five bedrooms and four baths, and is set on about a quarter acre.

See more photos of this home for sale in Columbus.

Price: $1.7 Million

Address: 279 Old Stamford Road New Canaan, Conn. 06840

This four-bedroom, five-bathroom Colonial-style home was built in 2000 and is set at the end of a private road. Its 4,688 square feet of open-plan living space includes a large walk-in closet and the master bedroom features a fireplace.

See more photos of this home for sale in New Canaan.

Price: $624,900

Address: 205 Summit Road, Mount Laurel, N.J. 08054

Set on about a half-acre, this 4,756-square-foot home was built in 1990. Along with a balcony that overlooks its "great room," the five-bedroom, five-bathroom showplace has a double staircase and a circular driveway.

See more photos of this home for sale in Mount Laurel.

Price: $439,900

Address: 22597 Huff Road Milton, Del. 19968

Set on a 2.47-acre lot, this three-bedroom, four-bathroom house was built in 2006, and its listing promises "upgrades galore."

See more photos of this home for sale in Milton.

Price: $404,900

Address: 1761 Golden Field Drive, Greenwood, Ind. 46143

This four-bedroom, four-bathroom ranch-style house near Bloomington is touted in its listing as having a full basement and easy access to main roads.

See more photos of this home for sale in Greenwood.

Price: $449,900

Address: 1003 Englewood Court, Summerville, S.C. 29483

Built in 2006, this five-bedroom, four-bathroom home is set on a little less than an acre.

See more photos of this home for sale in Summerville.


More recent news about foreclosures:
What the Chase Settlement Could Mean for Consumers
Fewer Homes Being Repossessed, Thanks to Investors
Fewer Foreclosures Now, but They're Selling for Less

More on AOL Real Estate:
Find out how to calculate mortgage payments.
homes for sale in your area.
foreclosures in your area.

Find homes for rent in your area.

Follow us on Twitter at @AOLRealEstate or connect with AOL Real Estate on Facebook.
Read Full Story

Find a New Home

Powered by Zillow

From Our Partners