Thursday, December 15, 2011

South Carolina cracks top 10 states in foreclosure filings

Foreclosure filings across the country dropped last month compared to October, but analysts say they expect a "new set of incoming foreclosure waves" to roll into the market early next year.

That's the latest from RealtyTrac, which tracks foreclosure, auctions and bank-owned homes.

There were 224,394 U.S. foreclosure filings last month, a three percent drop from November and a 14 percent decrease from the same time last year.

Nevada, California and Arizona continue to lead in foreclosures. South Carolina cracked the top 10 for the first time since RealtyTrac began issuing this report in 2005.

South Carolina saw more than 4,000 foreclosure filings in November, a 10 percent jump from October and 4 percent increase from the same time last year. One out of every 517 S.C. homes received a foreclosure filing in November, compared to one out of every 579 homes nationally, RealtyTrac says.

North Carolina, which ranks 34th in foreclosures, reported 2,700 foreclosure filings, a 8 percent drop from October and 34 percent decrease from 2010.

RealtyTrac described the U.S. filing slowdown in November as a seasonal change, and said scheduled foreclosure auctions reached a nine-month high last month. RealtyTrac said the increase in auctions corresponds to a surge in default notices seen in August.

Foreclosure activity slowed last year when banks paused to deal with paperwork problems. Lenders discovered that employees cut corners and signed false or incomplete legal documents.

As banks resume foreclosure proceedings, more distressed homes are expected to move through the foreclosure pipeline, eventually hitting the market.

"...November's numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs or short sales sometimes early next year," said James Saccacio, co-founder of RealtyTrac.

For more information and to view a map illustrating foreclosure activity, go to: