Foreclosures fell 10 per cent year-over-year in July and 3 per cent from last month, according to RealtyTrac. A good sign for a housing recovery.
But foreclosure starts – default notices or scheduled foreclosure auctions – increased 6 per cent on a year-over-year basis. This represents the third consecutive month of increases after 27 straight months of declines.
And foreclosure starts increased on an annual basis in 27 states, jumping 201 per cent in Connecticut; 164 per cent in New Jersey; and 139 per cent in Pennsylvania.
The real estate market had started to stabilise on signs that foreclosure inventory was decreasing. But a rise in foreclosure starts suggests that a tidal wave of foreclosures is building, especially in states with a judicial foreclosure process.
Here’s a chart from RealtyTrac that shows the 10 states where foreclosure starts climbed the most in July: