Foreclosures climbed in January

@CNNMoney February 16, 2012: 5:32 AM ET
One in every 624 U.S. homes, nearly 211,000 in total, got hit with some sort of foreclosure filing last month.

One in every 624 U.S. homes, nearly 211,000 in total, got hit with some sort of foreclosure filing last month.

NEW YORK (CNNMoney) -- Foreclosures picked up in January, yet another sign that the nation's huge glut of delinquent homes may soon start making their way onto the market.

The number of homes hit with a notice of default, auction sale, bank repossession or some other foreclosure filing in January rose 3% since December, but it was still significantly lower than it was a year ago, according to RealtyTrac.

One in every 624 U.S. households, nearly 211,000 in total, got hit with some sort of foreclosure filing last month. That was down 19% since January 2011, the 16th month of consecutive declines.

While the declines seem like good news for the housing market, where the large number of foreclosed homes have depressed home prices, much of it was due to processing delays caused by fall-out from the robo-signing scandal that broke in late 2010.

Last year, banks spent more time making sure paperwork was legal and proper, creating a backlog in the foreclosure pipeline.

Mortgage deal: What the critics say

But now there are signs that "the frozen-up foreclosure process is beginning to thaw," especially in some parts of the country, said Brandon Moore, CEO of RealtyTrac.

"Foreclosure activity increased on a year-over-year basis for the first time in more than 12 months in Florida, Illinois, Indiana and Pennsylvania, following a pattern we saw in late 2011 in states such as California, Arizona and Massachusetts."

The $26 billion foreclosure settlement that the state attorneys general signed with the nation's five largest banks should help move foreclosures more quickly through the pipeline.

Under the terms of the settlement, banks agreed to process foreclosures more openly and uniformly. While it may mean an initial surge of foreclosures, the new rules should eventually cause the numbers to shrink since many borrowers draw multiple filings as they stay in the pipeline for months or even years.

In fact, there are already signs that lenders are getting past the robo-signing mess, said Daren Blomquist, RealtyTrac's director of marketing communications. Florida saw a 14% increase in foreclosure filings compared with a year earlier, for example.

"That was the first month-over-month increase in Florida filings after 14 months of declines," he said.

The robo-signing scandal, in which bank employees improperly signed hundreds of legal documents a day, often without even reading them, was a particularly strong issue in the Sunshine State.

Florida judges came down hard on the lenders, forcing them to clean up their act. The banks reacted by slowing down foreclosure processing, which kept some cases out of the foreclosure pipeline for months.

Foreclosures: Hardest hit zip codes

Nevada led all other states in the rate of foreclosure filings for the 61st consecutive month. One in every 198 homes drew a foreclosure notice in January.

More California households, nearly 52,000, received a notice of default or foreclosure than any other state. With one out of every 265 homes with a filing, it had the second highest foreclosure rate in the nation. Arizona (one in 325) and Georgia (one in 328) finished third and fourth in the nation.

California cities occupied nine of the top 10 hardest hit metro areas. Las Vegas, which took fifth place, was the only exception. The worst hit place was Stockton, where one out of every 140 households received a foreclosure notice. To top of page

Overnight Avg Rate Latest Change Last Week
30 yr fixed3.80%3.88%
15 yr fixed3.20%3.23%
5/1 ARM3.84%3.88%
30 yr refi3.82%3.93%
15 yr refi3.20%3.23%
Rate data provided
View rates in your area
Find personalized rates:
Find Homes for sale
  • Property Type
  • Find a home in:
    New York | Atlanta | Chicago | Los Angeles
    Washington D.C | Houston | Philadelphia | More options

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.