After Big Jump in August…Foreclosure Starts in Washington and Oregon Fall Again

New foreclosure actions in the Northwest returned to levels in line with prior months during September, according to ForeclosureRadar. The leveling off in September follows a strong surge in foreclosure starts during the month of August in Washington and Oregon and puts new foreclosure tallies far below the numbers seen at the peak of their foreclosure activity.

ForeclosureRadar reports that Washington has experienced the greatest decline of all Western states, with 71.5% fewer notice of trustee sale filings today than at our peak in June of 2009. Foreclosure sales were mixed last month with Oregon and Washington showing increases and that the percentage of foreclosure sales that went to third parties, typically investors, was at or near peak levels. Sales to third parties in Washington were up 15.6%, a record for this year. Oregon was the only Western state to show a decrease, down from 15.5% in July to 6.0% last month.

“While foreclosure activity returned to its normal course in September, we fully expect to see more volatility like we saw in August as banks continue to work in fits and starts through robo-signing and other issues,” said Sean O’Toole, founder and CEO of ForeclosureRadar. “It’s almost unfathomable that four years into this crisis there would still be so much uncertainty on how to best deal with the trillions in bad mortgage debt that was created during the credit bubble,” O’Toole added.
Here is the breakdown of activity during the month of September for Washington and Oregon:
Washington’s Foreclosure Market:
Foreclosure Starts: 1,383 (-40.9%)
Foreclosure Sales: 1,618 (+12.3%)
Foreclosure Timeframe: 103 days (-0.9%)
Oregon’s Foreclosure Market:
Foreclosure Starts: 1,249 (-5.7%)
Foreclosure Sales: 858 (+5.4%)
Foreclosure Timeframe: 298 days (+0.4%)