The number of properties in foreclosure nationwide rose in the third quarter as the logjam in some judicial states has loosened, according to RealtyTrac.
The total number of U.S. properties with foreclosure filings attached to them quarter rose 3% in the third quarter to 327,258, compared to a year ago, RealtyTrac said. Total foreclosure filings include default notices, scheduled notices and bank repossessions.
A total of 133,811 properties began the foreclosure process in the third quarter, a decrease of 14% on a yearly basis. That's the lowest level of new foreclosures since the third quarter of 2005.
The number of properties repossessed by the lender and placed into REO status rose 66% to 123,040.
New Jersey had the nation's highest foreclosure rate, as foreclosure activity in the Garden State rose 27%, with one in every 171 housings having a foreclosure filing attached. Florida had the second-highest foreclosure rate, followed by Nevada, Maryland and Illinois.
“In states such as New Jersey, Massachusetts and New York, a flood of deferred distress from the last housing crisis is finally spilling over the legislative and legal dams that have held back some foreclosure activity for years,” Daren Blomquist, a RealtyTrac vice president, said in a
“That deferred distress often represents properties with deferred maintenance that will sell at more deeply discounted prices, creating a drag on overall home values,” Blomquist said.
