The number of new foreclosure filings in August hit its lowest
level in nearly eight years, according to Realty Trac, an online marketer of
foreclosed properties.
Soaring home prices and a big decline in underwater
borrowers -- those who owe more
on their mortgage loans than their homes are worth -- have helped drive the
trend.
August's initial foreclosure filings fell 44% to 55,575, just
below the 56,063 that were recorded in October 2005. The foreclosure crunch
began in summer 2006, at about the same time that housing prices hit their
peak.
"This is a strong indicator that the crisis is over,"
said Daren Blomquist, vice president at RealtyTrac. "The foreclosure flood-waters have receded in most parts of the country, although lenders and
communities continue to clean up the damage left behind," he added.
The mopping-up process continues, however. In August, for
example, the number of homes repossessed by lenders rose 6%, compared with
July, to 39,277. But that still represents a drop of 25% year-over-year, and is
more than 60% below the peak of repossessions in September, 2010.
The state with the highest rate of foreclosure filings was
Nevada, with one for every 359 homes. According to Blomquist, many of those
filings had been delayed by recent state legislation there that required
lenders to redo their paperwork.
In Florida, one of every 383 homes had some kind of filing, the
second highest rate among states. Ohio, Delaware and Maryland filled out the
top five.
Florida cities accounted for six of the 10 hardest hit metro
areas. Port St. Lucie topped the list, with a filing for one out of every 201
homes. Jacksonville, Miami and Ocala were also hard hit. Las Vegas reported the
third highest rate and three Ohio cities -- Toledo, Cleveland and Akron -- also
made the top 10 list.