August Foreclosure Activity Remains Near Record High

According to RealtyTrac, August saw 358,471 foreclosures, a 1% decrease from July but an 18% increase from the prior year: one in every 357 housing units received a foreclosure filing in August.

“The August report demonstrates that there is still an ample supply of properties filling the foreclosure pipeline even while the outflow of bank-owned REO properties onto the resale market is being more carefully regulated,” said James J. Saccacio, chief executive officer of RealtyTrac. “After hitting a high for the year in July, REOs dropped 13 percent in August, but we also saw a record high number of properties either entering default or being scheduled for a public foreclosure auction for the first time.

The regional commentary indicates that the pain in the big 3 continues unabated, even as the Fed is set to repeat every single one of Greenspan's mistakes:

With one in every 62 housing units receiving a foreclosure filing in August, Nevada continued to document the nation’s highest state foreclosure rate despite an 8 percent decrease in foreclosure activity from the previous month. A total of 17,902 Nevada properties received a foreclosure filing during the month, still an increase of 53 percent from August 2008.

Florida documented the nation’s second highest state foreclosure rate, with one in every 140 housing units receiving a foreclosure filing, and California documented the nation’s third highest state foreclosure rate, with one in every 144 housing units receiving a foreclosure filing.

A 10 percent month-to-month decrease in foreclosure activity helped lower Arizona’s foreclosure rate from the nation’s third highest in July to fourth highest in August. One in every 150 Arizona housing units received a foreclosure filing in August — still more than twice the national average.

Other states with foreclosure rates ranking among the nation’s 10 highest were Michigan, Idaho, Utah, Colorado, Georgia and Illinois.

That foreclosure moratorium sure is doing miracles for pent up demand. If and when it ends, and all those loans marked at par, and moving directly to REO and not pass go, is just the day of glory and crowning achievement to all the efforts Sheila Bair and all those other fine gentlemen in power have put in to make sure the economic reality translates dollar for dollar into bank balance sheet identity (not to mention cash flow statement).