"Foreclosure activity continued to bounce back in some markets where it may have appeared the foreclosure problem had been knocked out by an aggressive combination of foreclosure prevention efforts over the past two years," said Daren Blomquist, vice president at RealtyTrac. "Places like Nevada, where foreclosure starts increased to a 20-month high, and Maryland, where overall foreclosure activity increased to a 33-month high. Still, the emerging housing recovery has strengthened most local markets enough to quickly shake off a few more blows from these nagging foreclosures."
Local broker quotes from the RealtyTrac Network
•"While foreclosure activity is less than one-third the level it was at the height of the foreclosure crisis in Reno, the 20-month high in foreclosure starts in May could provide some limited relief to the shortage of inventory as those foreclosure starts translate into short sales, sales at the public foreclosure auction or possibly bank-owned sales over the next year," said Craig King, COO at Chase International brokerage, which covers the Reno and Lake Tahoe markets. "Given the shortage of inventory and rising home prices, banks have little motivation to hold back on any foreclosures, so homeowners who have not been making payments for several months or even years without a foreclosure notice should expect to see that notice coming and would be well-advised to list their home as a short sale if they have no other alternative to avoid foreclosure."
•"Southern California is seeing the lowest levels of distress since 2005," said Rich Cosner, CEO of Prudential California Realty, covering Orange, Riverside and San Bernardino counties. "Given that 2005 was one of the best real estate markets in history, what we may be seeing is that the foreclosure levels and NOD levels are bottoming out at their historical lows. Those few foreclosures selling at the courthouse steps are being bought at almost market-level prices and are being paid for in cash by investors."
Florida, Nevada, Ohio post top state foreclosure rates
A 20 percent monthly increase in foreclosure activity pushed Florida's foreclosure rate to highest among the states in May, up from the No. 2 ranking in April. One in every 302 Florida housing units had a foreclosure filing during the month, nearly three times the national average. Florida foreclosure starts jumped 39 percent from a two-year low in April, but were still down 17 percent from a year ago. Scheduled foreclosure auctions in Florida increased 6 percent from the previous month and were up 79 percent from a year ago, while Florida bank repossessions increased 14 percent from the previous month and were up 20 percent from a year ago.
Nevada foreclosure activity increased annually in May after 27 consecutive months of annual decreases, but the state's foreclosure rate still slipped to second highest among the states after ranking No. 1 in April. One in every 305 Nevada housing units had a foreclosure filing during the month. The increase in overall foreclosure activity in Nevada was driven primarily by an 81 percent year-over-year increase in foreclosure starts, which reached a 20-month high in May. Meanwhile scheduled foreclosure auctions in Nevada increased 21 percent from the previous month but were still down 14 percent from a year ago, and bank repossessions increased 4 percent from the previous month but were still down 64 percent from a year ago.
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