Welcome!

News Feed Item

Foreclosure Sales Increase 21 Percent in Third Quarter According to RealtyTrac Foreclosure & Short Sales Report

Pre-Foreclosure Sales and Bank-Owned Sales Both Jump From Previous Quarter; Short Sales on Non-Foreclosures Also Up; Sell $82K Below Loan Amount on Average

IRVINE, CA -- (Marketwire) -- 12/06/12 -- RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Q3 2012 U.S. Foreclosure & Short Sales Report™, which shows a total of 193,059 U.S. properties in some stage of foreclosure or bank-owned (REO) were sold during the third quarter, an increase of 21 percent from the previous quarter, but still down 3 percent from the third quarter of 2011.

The report also shows that foreclosure-related sales accounted for 19 percent of all U.S. residential sales during the third quarter -- down from 20 percent in the previous quarter but the same level as in the third quarter of 2011.

Counter to the trend in recent years, sales of properties in some stage of foreclosure (pre-foreclosure sales) outnumbered sales of foreclosed, bank-owned properties in the third quarter. A total of 98,125 pre-foreclosure sales occurred during the quarter compared to a total of 94,934 REO sales.

Other high-level findings from the report:

  • Pre-foreclosure sales increased 22 percent from the previous quarter and were also up 22 percent from the third quarter of 2011, while the average sales price decreased 3 percent from the previous quarter and was down 5 percent from a year ago.

  • REO sales increased 19 percent from the previous quarter but were still down 20 percent from the third quarter of 2011. The average REO sales price decreased 7 percent from the previous quarter but was still up 7 percent from the third quarter of 2011.

  • Homes in foreclosure or bank-owned sold at an average price that was 32 percent below the average price of a home not in foreclosure, up from a 29 percent discount in the second quarter and a 31 percent discount in the third quarter of 2011.

  • Short sales of properties not in the foreclosure process increased 15 percent from the previous quarter and were up 17 percent from the third quarter of 2011. These non-foreclosure short sales accounted for an estimated 22 percent of all residential sales, bringing the total distressed sale share to an estimated 41 percent for the quarter.

  • Non-foreclosure short sale prices in the third quarter fell short of the total amount of loans outstanding by an average of $82,312 per short sale. For all short sales, including non-foreclosure and in-foreclosure properties, the sales price was short of combined loan amounts by average of $94,896 per short sale.

"The shift toward earlier disposition of distressed properties continued in the third quarter as both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure," said Daren Blomquist, vice president of RealtyTrac. "However, the scheduled expiration of the Mortgage Forgiveness Debt Relief Act at the end of this year could stifle this trend toward short sales. If that law expires as scheduled, homeowners who agree to a short sale could see their income tax jump significantly because the portion of the unpaid loan balance not covered by the short sale proceeds will be considered taxable income in many cases.

"The prospect of being taxed on potentially tens or hundreds of thousands of dollars in additional income may motivate more distressed homeowners to forgo a short sale and allow the home to be foreclosed," continued Blomquist. "Additionally, if the mortgage interest deduction is eliminated due to the fiscal cliff quagmire, it would give many underwater and otherwise distressed homeowners one less reason to hang on to their homes."

Pre-foreclosure sales increase from previous quarter and a year ago
Third parties purchased a total of 98,125 pre-foreclosure residential properties -- in default or scheduled for auction -- during the third quarter, an increase of 22 percent from the previous quarter and also an increase of 22 percent from the third quarter of 2011. Pre-foreclosure sales accounted for 10 percent of all sales during the quarter, the same as the previous quarter but up from 8 percent of all sales in the third quarter of 2011.

Pre-foreclosure properties sold for an average price of $191,025 in the third quarter, down 3 percent from the second quarter and down 5 percent from the third quarter of 2011. The average sales price of a pre-foreclosure residential property in the third quarter was 27 percent below the average sales price of a non-foreclosure residential property, up from a 25 percent discount in the previous quarter and a 19 percent discount in the third quarter of 2011.

Pre-foreclosure homes that sold in the third quarter took an average of 359 days to sell after starting the foreclosure process, up from an average of 319 days in the previous quarter and up from an average of 318 days in the third quarter of 2011.

REO sales spike from previous quarter, still down from a year ago
Third parties purchased a total of 94,934 bank-owned (REO) residential properties in the third quarter, an increase of 19 percent from the previous quarter but down 20 percent from the third quarter of 2011. REO sales accounted for 10 percent of all residential sales during the quarter, the same as in the second quarter but down from 11 percent of sales in the third quarter of 2011.

REOs sold for an average price of $161,954 in the third quarter, down 7 percent from the second quarter but up 7 percent from the third quarter of 2011. The average sales price of a bank-owned home in the third quarter was 38 percent below the average price of a non-foreclosure home, up from a 33 percent discount in the second quarter but down from a 39 percent discount in the third quarter of 2011.

REOs that sold in the third quarter took an average of 186 days to sell after being foreclosed, down from 195 days in the second quarter and 193 days in the third quarter of 2011.

Non-foreclosure short sales increase from previous quarter and a year ago
Short sales (where the sales price was below the estimated total of all outstanding loans on a given property) of properties not in foreclosure increased 15 percent from the previous quarter and were up 17 percent from the third quarter of 2011.

These non-foreclosure short sales accounted for an estimated 22 percent of all residential sales during the third quarter. When combined with the foreclosure sales share of 19 percent, that brought the total distressed sales share for the quarter to an estimated 41 percent of all residential sales.

On average, these non-foreclosure short sales had a final sales price that was $82,312 below the combined amount of outstanding loans for the property being sold. For all short sales, including both non-foreclosure and in-foreclosure, the final sales price was on average $94,896 short of the loan amount.

Georgia, California, Arizona post highest percentage of foreclosure sales
Foreclosure sales accounted for 38 percent of all residential sales in Georgia, the highest percentage of any state during the third quarter but down from 41 percent of all sales in the second quarter. Pre-foreclosure sales in Georgia increased 40 percent on a year-over-year basis and REO sales increased 4 percent. Non-foreclosure short sales in Georgia increased 32 percent on a year-over-year basis and accounted for an estimated 18 percent of all residential sales in the third quarter.

California foreclosure-related sales decreased 12 percent on a year-over-year basis, but those sales still accounted for 36 percent of all residential sales, the second highest percentage of any state. California pre-foreclosure sales increased 17 percent on a year-over-year basis while REO sales were down 37 percent. Non-foreclosure short sales in California increased 20 percent on a year-over-year basis and accounted for an estimated 14 percent of all residential sales in the third quarter.

Foreclosure-related sales accounted for 34 percent of all residential sales in Arizona, the third highest percentage of any state despite a 28 percent year-over-year decrease. Pre-foreclosure sales were still up 6 percent on a year-over-year basis in Arizona, but REO sales decreased 49 percent from a year ago. Non-foreclosure short sales in Arizona increased 12 percent on a year-over-year basis and accounted for an estimated 16 percent of all residential sales during the third quarter.

Other states where foreclosure-related sales accounted for at least 20 percent of all sales were Nevada (31 percent), Florida (26 percent), Illinois (24 percent), Michigan (24 percent), and Colorado (20 percent).

Metro Trends
Foreclosure-related sales accounted for 54 percent of all residential sales in Modesto, Calif., the highest percentage of any of the nation's 100 largest metropolitan statistical areas in terms of population.

Six other California metro areas were in the top 10 in terms of percentage of foreclosure-related sales: Stockton (53 percent); Riverside-San Bernardino-Ontario (47 percent), Sacramento (40 percent), Bakersfield (39 percent), Oxnard-Thousand Oaks-Ventura (36 percent), and Los Angeles-Long Beach-Santa Ana (34 percent).

Metro areas outside of California with percentage of foreclosure-related sales ranking among the top 10 were Atlanta (41 percent), Tucson, Ariz., (40 percent), and Phoenix (34 percent).

Glossary of Terms
Foreclosure (FC) sale: a sale of a property that occurs while the property is actively in some stage of foreclosure (NOD, LIS, NTS, NFS or REO). This includes only sales to third-party buyers or investors. It does not include property transfers from the owner in default to the foreclosing bank or lender.

REO sale: a sale of a property that occurs while the property is actively bank owned (REO).

Pre-foreclosure sale: a sale of a property that occurs while the property is actively in default (NOD, LIS) or scheduled for foreclosure auction (NTS, NFS).

Pct. of all sales: total number of Foreclosure Sales (or Pre-Foreclosure Sales or REO Sales) as a percentage of all residential sales during the quarter or year.

Avg. FC sales price: the average sales price of Foreclosure Sales (including both Pre-Foreclosure Sales and REO Sales) during the quarter or year, excluding sales with no sales price.

Avg. FC discount: the percentage difference between the average sales price of foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.

Avg. REO discount: the percentage difference between the average sales price of REO sales and the average sales price of non-foreclosure sales during the quarter or year.

Avg. pre-foreclosure discount: the percentage difference between the average sales price of pre-foreclosure sales and the average sales price of non-foreclosure sales during the quarter or year.

Non-foreclosure short sale: the property was sold for less than what was owed on the mortgage but was not in foreclosure at the time of the sale.

Click here to learn about RealtyTrac's methodology and view graphics depicting the latest foreclosure sales trends.

Report License
The RealtyTrac U.S. Foreclosure Sales Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.

Order Customized Reports
Detailed and historical foreclosure data used to create the above report may be purchased through the RealtyTrac Data Licensing Department at 949.502.8300 Ext. 158. Aggregate data is available at the state, metro, county and zip code levels dating back to 2005, and address-level foreclosure records are also available historically.

About RealtyTrac Inc.
RealtyTrac (www.realtytrac.com) is the leading supplier of U.S. real estate data, with more than 1.5 million active default, foreclosure auction and bank-owned properties, and more than 1 million active for-sale listings on its website, which also provides essential housing information for more than 100 million homes nationwide. This information includes property characteristics, tax assessor records, bankruptcy status and sales history, along with 20 categories of key housing-related facts provided by RealtyTrac's wholly-owned subsidiary, Homefacts®. RealtyTrac's foreclosure reports and other housing data are relied on by the Federal Reserve, U.S. Treasury Department, HUD, numerous state housing and banking departments, investment funds as well as millions of real estate professionals and consumers, to help evaluate housing trends and make informed decisions about real estate.

Media Contacts:
Jennifer von Pohlmann
949.502.8300, ext. 139
[email protected]

Ginny Walker
949.502.8300, ext. 268
[email protected]

Order Custom Data:
Data Sales Department
800.913.0439
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Qosmos has announced new milestones in the detection of encrypted traffic and in protocol signature coverage. Qosmos latest software can accurately classify traffic encrypted with SSL/TLS (e.g., Google, Facebook, WhatsApp), P2P traffic (e.g., BitTorrent, MuTorrent, Vuze), and Skype, while preserving the privacy of communication content. These new classification techniques mean that traffic optimization, policy enforcement, and user experience are largely unaffected by encryption. In respect wit...
Deploying applications in hybrid cloud environments is hard work. Your team spends most of the time maintaining your infrastructure, configuring dev/test and production environments, and deploying applications across environments – which can be both time consuming and error prone. But what if you could automate provisioning and deployment to deliver error free environments faster? What could you do with your free time?
SYS-CON Events announced today that Hitrons Solutions will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Hitrons Solutions Inc. is distributor in the North American market for unique products and services of small and medium-size businesses, including cloud services and solutions, SEO marketing platforms, and mobile applications.
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
SYS-CON Events announced today that eCube Systems, a leading provider of middleware modernization, integration, and management solutions, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. eCube Systems offers a family of middleware evolution products and services that maximize return on technology investment by leveraging existing technical equity to meet evolving business needs. ...
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Pulzze Systems was happy to participate in such a premier event and thankful to be receiving the winning investment and global network support from G-Startup Worldwide. It is an exciting time for Pulzze to showcase the effectiveness of innovative technologies and enable them to make the world smarter and better. The reputable contest is held to identify promising startups around the globe that are assured to change the world through their innovative products and disruptive technologies. There w...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
SYS-CON Events announced today that StarNet Communications will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. StarNet Communications’ FastX is the industry first cloud-based remote X Windows emulator. Using standard Web browsers (FireFox, Chrome, Safari, etc.) users from around the world gain highly secure access to applications and data hosted on Linux-based servers in a central data center. ...
Traditional on-premises data centers have long been the domain of modern data platforms like Apache Hadoop, meaning companies who build their business on public cloud were challenged to run Big Data processing and analytics at scale. But recent advancements in Hadoop performance, security, and most importantly cloud-native integrations, are giving organizations the ability to truly gain value from all their data. In his session at 19th Cloud Expo, David Tishgart, Director of Product Marketing ...
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...