Bank Failure & Foreclosure Stats

After four bank failures Friday, eighty banks have failed in 2011. At the current pace 100 will be closed this year, better than the 160 banks the FDIC closed due to insolvency in 2010 or the 139 that failed in 2009. According to Trepp, a CMBS and commercial mortgage data services provider, loans tied to real estate were virtually the sole source of the failures: commercial real estate loans accounted for 82% of the nonperforming loans at the failed banks.

RealtyTrac has released its U.S. Foreclosure Market Report for the third quarter of 2011, which shows foreclosure filings-default notices, scheduled auctions and real estate-owned (REO) properties-were reported on 610,337 properties in the third quarter, an increase of less than 1% from the previous quarter and a decrease of 34% from the third quarter of 2010. The report shows one in every 213 U.S. housing units with a foreclosure filing during the quarter.

Before you break out the party hats, “U.S. foreclosure activity has been mired down since October of last year, when the robo-signing controversy sparked a flurry of investigations into lender foreclosure procedures and paperwork,” said James Saccacio, CEO of RealtyTrac. “While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up.”

Folks wonder why servicing values are higher in one state than another. U.S. properties foreclosed in the third quarter took an average of 336 days to complete the foreclosure process, up from 318 days in the second quarter and the highest number of days going back to the first quarter of 2007.

New York properties foreclosed in the third quarter took an average of 986 days to complete the foreclosure process.

The second longest average foreclosure process was in New Jersey, at 974 days, and the third longest average foreclosure process was in Florida, at 749 days.

The Great State of Texas, who has not threatened to secede yet this week, had the shortest average foreclosure process of any state, at 86 days.