REOs Increase 21% in 3Q, Foreclosure Filings Rise 5%

REOs jumped 21% from the second quarter to the third quarter in 2009, according to the latest data from RealtyTrac, which says foreclosure filings were reported on 937,840 properties in the 3Q, up 5% from the 2Q and an increase of nearly 23% from 3Q 2008. REO activity increased in all but two states, including Ohio and Rhode Island as well as the District of Columbia. "This indicates that lenders may be working through some of the pent-up foreclosure inventory caused by legislative delays, loan modification efforts and high volumes of distressed properties," said CEO James J. Saccacio. Nevada, Arizona, and California continued to post the top state foreclosure rates in the 3Q. Nevada documented the highest rate with one in 23 housing units receiving a filing. The state reported a total of 47,925 filings, and REO activity here increased 29% from the 2Q but defaults decreased 8%. With 250,054 properties receiving foreclosure filings during the quarter, California accounted for nearly 27% of the nation's 3Q total. Default notices here decreased 6% while scheduled auctions increased 5% from and real estate-owned assets increased 16%. The state's foreclosure activity decreased nearly 2% from the previous quarter thanks to a 10% drop in default notices, but scheduled auctions increased 4% and REOs increased 12% from the 2Q.