Policy Analysis | July 2009

How has the national mortgage meltdown affected the SLC states?

Background:

RealtyTrac®, the leading online marketplace for foreclosure properties, recently released its May 2009 U.S. Foreclosure Market ReportTM, which shows foreclosure filings – default notices, scheduled auctions and bank repossessions – were reported on 321,480 U.S. properties during the month, a decrease of 6 percent from the previous month but an increase of nearly 18 percent from May 2008.

"May foreclosure activity was the third highest month on record, and marked the third straight month where the total number of properties with foreclosure filings exceeded 300,000 – a first in the history of our report," said James J. Saccacio, chief executive officer of RealtyTrac. "While defaults and scheduled foreclosure auctions were both down from the previous month, bank repossessions, or REOs, were up 2 percent thanks largely to substantial increases in several states. We expect REO activity to spike in the coming months as foreclosure delays and moratoria implemented by various state laws come to an end."

Florida posted the third highest state foreclosure rate in May, with one in every 148 housing units receiving a foreclosure filing during the month, behind Nevada (one in every 64) and California (one in every 144). Default notices, scheduled auctions and bank repossessions in the state were all down from the previous month, but it still posted the nation's second highest number of properties with foreclosure filings: 58,931, up 50 percent from May 2008.

Georgia, Texas and Virginia were also on the list of the top 10 highest total foreclosure states. These top 10 states accounted for nearly 77 percent of total properties with foreclosure filings nationwide.

 /></p> <h2 align=Foreclosures in SLC States: May 2005 - May 2009

State May 2005 May 2006 % Change May 2007 % Change May 2008 % Change May 2009 % Change % Change: May 2005 - May 2009
Alabama 360 366 1.67 666 81.97 * 501 -24.77 1,967 292.61 ** 446.39
Arkansas 1,496 784 -47.59 1,380 76.02 1,327 -3.84 1,671 25.92 11.70
Florida 10,477 8,898 -15.07 21,704 143.92 39,183 80.53 58,931 50.40 462.48
Georgia 4,288 5,769 34.54 8,294 43.77 10,651 28.42 10,516 -1.27 145.24
Kentucky 626 518 -17.25 729 40.73 750 2.88 1,078 43.73 ** 72.20
Louisiana 295 158 -46.44 509 222.15 * 701 37.72 941 34.24 218.98
Maryland 236 260 10.17 1,766 579.23 2,345 32.79 3,539 50.92 1399.58
Mississippi 304 56 -81.58 219 291.07 * 185 -15.53 434 134.59 42.76
Missouri 1,223 1,423 16.35 2,751 93.32 4,989 81.35 2,796 -43.96 128.62
North Carolina 1,257 1,672 33.02 3,065 83.31 3,979 29.82 2,587 -34.98 105.81
Oklahoma 974 1,413 45.07 928 -34.32 1,235 33.08 877 -28.99 -9.96
South Carolina 644 539 -16.30 367 -31.91 1,398 280.93 ** 3,092 121.17 ** 380.12
Tennessee 3,225 2,442 -24.28 3,823 56.55 4,645 21.50 3,569 -23.16 10.67
Texas 7,557 14,506 91.95 9,653 -33.46 10,401 7.75 9,813 -5.65 29.85
Virginia 110 346 214.55 1,770 411.56 5,266 197.51 5,385 2.26 4795.45
West Virginia 63 71 12.70 154 116.90 42 -72.73 101 140.48 60.32
SLC States 33,135 39,221 18.37 57,778 47.31 87,598 51.61 107,297 22.49 223.82
United States 73,701 92,746 25.84 176,137 89.91 273,001 54.99 321,480 17.76 336.19
Notes:
* Actual increase may not be as high due to expanded data coverage
** Actual increase may not be as high due to data collection changes or improvements

Source:
RealtyTrac®