Tri-Cities foreclosure filings up 43%; repossessions ease, trending higher


Tri-Cities foreclosure starts increased 43% from September. Nationwide they increased 12% – the largest monthly increase since August 2011 according to RealtyTrac’s October Foreclosure Market Report.

reo

REO filings

Locally, the big story is the increase in bank repossessions (REOs). Last month there were 61 of them across the Tri-Cities. That’s down from the September spike, but up 281% from where they were the October last year.  Nationwide they were up 31% from October last year – the eight consecutive month on the year-over-year metric.

Looking at the REO issue from a trends perspective, October’s filings flattened out and are at, or just below, the 12-month rolling average in the region’s counties. The exception is Greene County where the trend line has been steadily increasing since April. October REOs in Greene were thee higher than the 12-month rolling average and nine filings higher than what they were October last year.

nts

NTS filings

The recent REO filings haven’t began showing up on the local market yet. When they do, it will likely be a gradual influx that likely won’t disrupt market conditions. Typically foreclosures tend to depress the selling price of other properties but that probably won’t be an issue in most local markets this time. It’s less of an issue because the for sale inventory  is lower than past years so unless repossessions increase even more than they have in the past six months the market will likely absorb them without out significant effect on other properties.

“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, vice president at RealtyTrac. “However, the 12% increase this October is more than double the average 5% monthly increase in the past five Octobers, and the even more dramatic monthly increases in some states are certainly a concern. The upward trend in foreclosure starts in those states in some cases could be an indication of fissures in economic fundamentals driving more distress and in other cases is more likely an indication of long-term delinquencies finally entering the foreclosure pipeline.”

Until mid-summer NTS filings dominated attention in Tri-Cities.  They outnumbered repossessions in October but are beginning to trend lower. Compared to October last year they were up 7.7%.  Notice of Trustee sale filings were down three local markets last month. The same markets saw last month’s filings dip below the 12-month rolling average.

The RealtyTrac U.S. Foreclosure Market Report is a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee’s Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned or REO properties  (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located.

 

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