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N.C. home foreclosure rates decline 13% in November

Posted December 11, 2008

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— Home foreclosures in November across North Carolina fell 13 percent from October and were down nearly 30 percent from a year ago, foreclosure tracking firm RealtyTrac reported Thursday.

Nationally, the number of U.S. homes involved in some stage of the foreclosure process fell in October to the lowest level since June, partly due to new state laws that have lengthened the legal process for repossession and sale, RealtyTrac noted.

North Carolina’s legislation to help homeowners has received much praise nationally, and the number of properties in the state being foreclosed decreased to 2,793 last month, down from more than 3,000 in October.

That’s one per every 1,443 homes, according to RealtyTrac statistics. North Carolina, the 10th-ranked state in terms of population, ranked 31st in the foreclosure rankings.

Creditors took over 1,527 properties. Another 537 owners were notified that their properties were involved in repossession, and a further 729 received notices of default. The number of default notices declined by more than 400 from October.

However, the decline from a year ago in North Carolina and the drop nationally is likely to be a brief respite at best, RealtyTrac warned.

"We're going to have a pretty significant spike in January," said Rick Sharga, RealtyTrac's vice president for marketing. Plus, as job losses mount, "Increases in foreclosure activity follow that pretty directly."

Nationwide, more than 259,000 homes received at least one foreclosure-related notice in November, down 7 percent from October, but 28 percent higher than a year ago, RealtyTrac said.

The report comes as Democrats, including President-elect Barack Obama, insist that the government must use some of the bailout funds to halt rising foreclosures.

Last week, the Mortgage Bankers Association reported that a record one in 10 American homeowners with a mortgage was either at least one month behind on payments or in foreclosure at the end of September.

RealtyTrac monitors default notices, auction sale notices and bank repossessions. Lenders repossessed more than 78,000 properties last month, said the Irvine, Calif.-based company.

The worst recession in decades, falling home values and stricter lending standards have ensnared millions of U.S. households. The Federal Reserve predicts that new foreclosures this year will reach about 2.25 million, more than double pre-crisis levels.

In RealtyTrac's report, Nevada, Florida and Arizona had the nation's highest foreclosure rates. In Nevada, one in every 76 homes received a foreclosure filing last month. Florida saw one in every 173 properties receive a foreclosure filing, and in Arizona, it was one in every 198 homes. Rounding out the top 10 were California, Michigan, Georgia, Ohio, Colorado, Utah and Idaho.

Among metro areas, the Cape Coral-Fort Myers area in Florida was first, with one in every 59 housing units receiving a foreclosure filing. It was followed by Las Vegas, and the California cities of Merced, Modesto and Stockton.

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  • Sumo Vita Dec 11, 2008

    I'm not seeing any evidence of a fire sale. Houses in my Cary neighborhood have been selling at flat or slightly higher prices through October. That's not to say couldn't change, and I wouldn't be surprised that some of those overpriced palaces on 1/4 acre lots are selling cheap, but I don't think that's a trend.

  • foetine Dec 11, 2008

    There's a real estate firesale going on in the Triangle. A buddy of mind just bought a house that was listed for $725K for barely $500K. This was in a very nice neighborhood. The place was on the market for close to a year. The insurance guy was shocked to see the selling price as he had to figure out the replacement value of the house.

    This two horse town is overpriced and reality is smacking it back.

  • HowManyOunces Dec 11, 2008

    I feel for the people losing their homes, but I also feel that should hold some of the responsibility for the situation. They were given the same disclosures that we all get at settlement. I'm not upset with the banks for foreclosing on these homes. They violated the terms of the contracts and the bank is within it's rights to force sell the home to get the money back. It seems obvious to me that if you only make $30,000 a year, you can't afford a $300,000 home. Just simple math.

  • OrdinaryCitizen Dec 11, 2008

    "Um, if the worst three states are not experiencing 1 in every 10 homes in foreclosure, how can the country's average be 1 in every 10 homes?"

    I was asking the same question but most of the foreclosures were rental homes by owners living in different states.

  • Bob3425 Dec 11, 2008

    Hoohray, now their talking about raising insurance rate up in some area by 20%, Merry Chirstmas from the NC state. I agree with most the other wait till Jan or Feb. I would not start dancing in the street over this.

  • srjbdl Dec 11, 2008

    The CNN report on the same thing mentions the fact that foreclosures are down because Fannie Mae and Freddie Mac aren't initiating in new foreclosures until after Christmas.

  • areyououtofyourmind Dec 11, 2008

    "Mortgage Bankers Association reported that a record one in 10 American homeowners with a mortgage was either at least one month behind on payments or in foreclosure"

    "Nevada, Florida and Arizona had the nation's highest foreclosure rates. In Nevada, one in every 76 homes...Florida saw one in every 173 properties...and in Arizona, it was one in every 198 homes."

    Um, if the worst three states are not experiencing 1 in every 10 homes in foreclosure, how can the country's average be 1 in every 10 homes?

  • csmac99 Dec 11, 2008

    Read past the headline before you comment.

  • bs101fly Dec 11, 2008

    oh good, the worst is over then.
    it's ok to go shopping and buy some stuff now NC.
    NC never suffers during hard times. Must be all the handouts developers give the community!

  • PaulRevere Dec 11, 2008

    Shocking. I thought it was all over for homeowners!

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