IRVINE, Calif. (11/17/15)--The number of U.S. properties starting the foreclosure process jumped 12% in October, according to Irvine, Calif.-based RealtyTrac. This marks the largest monthly increase since August 2011 when starts surged 24% (Housingwire.com Nov 12).
Foreclosure filings overall, which include default notices, scheduled auctions and bank repossessions, climbed 6% during the month, but remain 6% below their levels a year ago, RealtyTrac’s foreclosure market report found.
Foreclosure starts also sit far lower than year-ago levels.
“We’ve seen a seasonal increase in foreclosure starts in October for the past five consecutive years, so it’s not too surprising to see the monthly increase this October,” said Daren Blomquist, RealtyTrac vice president. “However, the 12% increase this October is more than double the average 5% monthly increase over the past five Octobers, and even more dramatic monthly increases in some states is certainly a concern.”
Foreclosure starts rose in 34 states, including California (21%), Florida (13%), New Jersey (15%), Illinois (20%), Maryland (30%), Washington (34%) and Michigan (37%).
Maryland, New Jersey, Florida, Nevada and Illinois posted the highest state foreclosure rates overall during the month.
“The upward trend in foreclosure starts in these states in some cases could be an indication of fissures in economic fundamentals driving more distress, and in other cases more likely an indication of long-term delinquencies finally entering the foreclosure pipeline,” Blomquist said.