Tampa-area banks foreclosing less often
By Yvette C. Hammett | Tribune Staff
Tampa Tribune
Published: Oct 16, 2014

BRANDON - While Florida continues to have the highest foreclosure rate in the country, the state's numbers are down in the third quarter of the year and down in the Tampa Bay metro area, as well.

Housing foreclosures nationally are up slightly over the second quarter - 0.42 percent - the first upswing since the third quarter of 2011, according to RealtyTrac, which researches housing data nationally. RealtyTrac released its U.S. Foreclosure Market Report today. U.S. properties in the third quarter were down 16 percent from a year ago.

Foreclosures are down in the Tampa Bay metro area by 5.4 percent compared to last quarter and down by 18.67 percent compared to the third quarter of 2013. One in every 148 houses in the Tampa-St. Petersburgh-Clearwater metropolitan statistical area was in some form of foreclosure in the third quarter, compared to one in every 153 houses statewide, according to the report.

"The Tampa foreclosure situation appears to be finally turning a corner this year after a resurgence in foreclosure activity in 2012 and early 2013,” said economist Daren Blomquist, vice president for RealtyTrac. "The third quarter numbers marked the sixth consecutive quarter where Tampa (area) foreclosure activity has decreased on a year-over-year basis following five consecutive quarters in 2012 and 2013 where the numbers were increasing. Despite this recent decline in foreclosure activity, the Tampa market still has the nation's eighth highest foreclosure rate, which demonstrates just how severe the foreclosure problem has been there.”

In this region, Hernando County showed the greatest drop in foreclosures - down 10 percent over the second quarter of the year and down 30 percent year over year, according to the RealtyTrac report. Pinellas County dropped just 4 percent from last quarter but is down 31 percent compared with the third quarter of 2013.

In Hillsborough County, the foreclosure rate dropped 7 percent in the third quarter and 30 percent year over year, while Pasco County's foreclosure rate dropped just 2 percent in the third quarter and only 6 percent compared with the third quarter of last year.

Statewide, foreclosures are down 3.74 percent compared to the second quarter of the year and down 17.37 percent compared to the third quarter of 2013.

Blomquist said the state and regional figures showing decline may be somewhat exaggerated due to a new "foreclosure fast track” law that took effect in this state in July 2013.

"That law changed the rules of how to foreclose and it could be that this recent decline is at least partially the result of banks adjusting to those new rules and having to slow down the pace of foreclosures while they adjust,” Blomquist said.

According to the Realtytrac report, the slight quarterly increase nationwide was driven by a 2 percent increase in default notices and a 7 percent quarterly increase in scheduled foreclosure auctions.

By contrast, bank repossessions decreased 12 percent over the previous quarter.

"September foreclosure activity was back to pre-housing bubble levels nationwide, in large part thanks to a continued slide in bank repossessions,” Blomquist said. "However, a recent rise in scheduled foreclosure auctions in many markets across the country shows lenders are continuing to clean house of lingering delinquent loans. This rise in scheduled auctions foreshadows a corresponding rise in bank repossessions and auction sales to third party buyers in the coming months.” yhammett@tampatrib.com
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