Metro foreclosure notices rise 22% in May due to longer time period

Foreclosure notices for metro Atlanta rose 22 percent in May from April, but the new figures released Tuesday require further explanation to get a better understanding of what’s going on.

First, the 9,530 notices in the 13-county metro area is a relatively small number during this housing crisis when there are five weeks in a month for lenders to prepare foreclosure ads for publication, said Barry Bramlett, president of Kennesaw-based Equity Depot, which compiled the data. May this year was such a month.

Over the past two years, the numbers generally have been running from a low of about 10,000 notices to a high of about 13,800 when there’s an extra week in a month for foreclosure notices to be prepared, Equity Depot data show.

Secondly, Bramlett said, the 22 percent monthly increase is coming off an April base of 7,784 notices — the lowest number in 27 months.

But what is not yet known, Bramlett said, is whether the situation is improving, or whether delays caused by the well-publicized document problems in the mortgage industry is affecting the figures. In other words, are there a lot more notices in the pipeline than the numbers reveal?

For the fourteenth month in a row, Gwinnett County had the most foreclosure notices — 1,971 — among the core metro counties. Fulton was second with 1,804 notices, followed by DeKalb (1,472), Cobb (1,152) and Clayton (791).

Foreclosure notices published this month are for auctions on the county courthouse steps set for next month. Sometimes, lenders and homeowners negotiate a reprieve that postpones an actual repossession. But, in many cases, that does not lead to a permanent solution.

“Interestingly, a record 65 percent of this month’s notices are historical repeats,” Bramlett said, meaning lenders are once again foreclosing on the same property. The average has been about 55 percent over the last two years, Bramlett said.

“The key factors that create foreclosures remain — high unemployment, a soft real estate market and underwater borrowers,”  Bramlett said.

Foreclosure notices are still very high. But year-to-date, there has been a small decline. A total of 49,055 notices have been published for the first five months of the year, compared with 50,148 for the same period of 2010.

For all of last year, a record 127,140 notices were published. That was up from 117,107 in 2009 and 79,484 in 2008.

In 2006, before the subprime mortgage crisis hit, there were just under 45,000 foreclosure notices in the metro area, according to Equity Depot data.

- Henry Unger, The Biz Beat

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101 comments Add your comment

Double D

May 17th, 2011
6:02 am

This is old news man. There are no jobs in the ATL, go figure? When you don’t have a job, you can’t pay the mortgage, this is not Rocket Science here. So glad I moved to another state 7 months ago where there are jobs. My advise is to move out of ATL as quick as you can, it is not getting better. ATL is a sinking ship, we came to this conclusion last year. Fast forward one year later, all of our friends there still have no jobs one year later.

Joe Biden

May 17th, 2011
6:03 am

Our stimulus plan is taking a little longer to work than we first anticipated.

Obama

May 17th, 2011
6:08 am

Don’t worry we have everything under control….besides, this is all George Bush’s fault.

Tuesday Morning Open Thread

May 17th, 2011
6:26 am

[...] story just makes me shake my head.  I was absolutely shocked by this, and even more by this.  Ok, I lied, I wasn’t shocked by either [...]

BlahBlahBlah

May 17th, 2011
6:32 am

65% are repeats. We should have let them fail 2 years ago. Instead we delayed the inevitable and have prolonged the recession. A wound can’t heal without air, and we have refused to rip off the band-aid. Why is anyone surprised by this?

Logic 88

May 17th, 2011
6:34 am

Thank the Democrats for making this worse.

The last three paragraphs tell it all

May 17th, 2011
6:35 am

Most of this article is concerned with explaining the month-to-month fluctuations in the foreclosure rate. However, the punchline comes with the broader context provided in the last three paragraphs.

The foreclosure crisis is still doing great damage to people. Our political leaders (Obama, the Dems and the Repubs) have truly failed us horribly. The high rate of foreclosures will continue due high unemployment and the fact that a majority of metro Atlantan’se owe more on their homes than they are worth (as such they can’t refi).

While congress and our state legislators battle over budget priorities, they neglect this very serious problem.

DeborahinAthens

May 17th, 2011
6:39 am

“Obama”, you are right (though facetious), it IS Bush’s fault. Go to the DOL statistics and look at the horrific rate of job loss during his presidency. Then the Repugs have the gall to keep saying cutting taxes create jobs. They tried that experiment from 2003 to the present, and it hasn’t worked yet, but you guys don’t seem to “get” it! Bush ushed in TWO recessions during his presidency. And you guys wouldn’t own either of them.

Double D

May 17th, 2011
6:41 am

“The high rate of foreclosures will continue due high unemployment and the fact that a majority of metro Atlantan’se owe more on their homes than they are worth”
This part is so true. Our house in ATL 3 years ago appraised at 145K, it was recently appraised at 65K, this was only last month. Things are really getting better huh?

BlahBlah is wrongwrong

May 17th, 2011
6:43 am

Once you have a foreclosure on your credit report, it will you atleast a year and a half of on-time paymanets to restore your credit rating to a level that a lender will deem acceptable or a mortgage loan. One 30-day late mortgage payment can damage your FICO credit score to the tune of 50 to 100 points. In other words, for most people it takes years to restore their credit.

BlahBlah’s figure of 65% repeat offenders is fanciful and absurd.

jeff

May 17th, 2011
7:19 am

Bush had a plan to destroy Atlanta, It;s documented and true. Do your research. Now you can take a guess as to why. The boy hates his self therefore he hates others. Bad parenting, So sad. Looser is a hater. When you ask yourself what legacy you left on Earth it will be hate for Bush. Clown.

ryanwilson47

May 17th, 2011
7:25 am

The first step in determining the worth of a conventional mortgage refinance is to estimate the property value and the borrowers’ equity in the home, use the “123 Mortgage Refinancing” to qualify for refinance

A.S.Mathew

May 17th, 2011
7:31 am

Foreclosures and bankruptcies are increasing at an alarming rate every
day. Every natural calamity is adding more speed to the already
fast running foreclosure and bankruptcy marathon.

bob

May 17th, 2011
7:34 am

would we think that a break down by zip code would give some real infarmation?

Double D

May 17th, 2011
7:36 am

Bob, my zip code was 30011 if that helps.

Loss my JOB!

May 17th, 2011
7:42 am

I lost my job in 2002 under the “Bush” residency. I still have friends in the ATL who have not gotten better jobs. This problem started before President Obama took office. I lived it and saw it!!

khc

May 17th, 2011
7:55 am

thanks W and all the crooks on wall st, bankers, real estate related semi professionals, and dumb arse folks who signed their names knowing full well they were not qualified, and of course the entitlement addled congress

tina

May 17th, 2011
7:56 am

Has anyone figured out everytime the gas goes sky high….so does the foreclosure rate……just a thought….

The Gecko

May 17th, 2011
7:56 am

The average US home ownership rate was around 64% for the thirty years prior to 2007 when it peaked at 69%. It is now around 67% but will reset to the thiry year average. That means around 2 million more vacated homes before we bottom out. Atlanta metro is a significant statistical indicator. Don’t forget to challenge your new tax bill. We will continue to see values drop thru 2012.

CanThinkForMyself

May 17th, 2011
7:58 am

@jeff: You better watch out, I think the Aliens are coming for you. Go hide under your bed until reality sinks in.

fazeila

May 17th, 2011
8:00 am

Hey Double D, what state did you move to? I’ve been considering options to move myself. Recently visited Dallas. There were so many companies out there. You’d have to be dead not to have a job.

Laurie

May 17th, 2011
8:04 am

Foreclosures in Georgia have not really been affected by the document snafu, because lenders don’t have to take people to court to foreclose. Why are our legislators not dealing with this issue?

Double D

May 17th, 2011
8:05 am

We moved to Tallahassee Florida, we got jobs the first day here. I have had 3 other friends from ATL who came to visit and got jobs the very first day.

Own it

May 17th, 2011
8:06 am

People are so quick to blame someone/something else (politicians, race, etc.) rather than owning any of it. People lose jobs in good and bad economies and it can’t all be due to external factors but it is more comfortable to blame those than take an inward look. Declining house values are terrible but I think we would all agree here most people took a risky path to purchase meaning little or no money down and little or no personal savings to safeguard during duress. Last time I checked there wasn’t a gun to your head while you were signing your closing paperwork. We as Americans have taken a toddler’s attitude towards purchasing – it’s shiny, new, big and attractive and I want it NOW and someone comes along that says “Sure, take it home today and pay me 30% (CCards)” and it happens everyday. Grow up, own some of your fate and maybe this country can change from the ground up.

commoncents

May 17th, 2011
8:07 am

Some posters on here are crazy…
Bush caused you to “loose” your job?
Your friends haven’t “gotten” better jobs? Do they even deserve better jobs? Getting older isn’t exactly a resume booster.
Perhaps there are other factors as to why you “loss” your job?

Double D

May 17th, 2011
8:08 am

Fazeila, when we were looking in Tallahassee, we were also looking in the Dallas, TX area, both have plenty of jobs. My hubbo, after being unemployed for 14 months in the ATL got two job offers here within one week, one with all relocation expenses paid. Needless to say we were gone.

commoncents

May 17th, 2011
8:08 am

@tina-

correlation is not always causation

Straight Talk

May 17th, 2011
8:10 am

Roosevelt: “A chicken in every pot” provided by the government
Obama: “A home for everybody” guaranteed by the government whether or not they can afford to buy one.
It’s common knowledge that our economy is in the toilet because of the government’s failed policies [aided by Rep. Barney Frank and Sen. Chris Dodd] that led to widespread ’sub prime’ mortgages [meaning mortgages provided to people who wouldn't normally qualify for one because they can't pay the mortgage]. Incredibly, the Federal government is now pushing banks again to issue sub prime mortgages. Those who don’t learn from history are doomed to repeat it. Hold onto your seat belt. It’s going to get worse.

commoncents

May 17th, 2011
8:15 am

Straight Talk-
Funny how these types of comments are typically made while campaigning. I wonder which voters they are trying to attract…

native atlantan

May 17th, 2011
8:15 am

I’ve worked for the same Atl based company for over 30 years, and even though they keep trying to assure us and themselfs that the business is getting better, those of us on the streets see very little evidence that that is true. Many businesses continue to cut their labor force, and many businesses have found ways to do without the many products that had come to use in their facilty in the past. Now with gas, food and other commodities causing significant price increases and inflation, I see no reason to be optimistic at this point, and my income that comes entirely from commission continues to be greatly effected by this long, slow to recover recession.

brad

May 17th, 2011
8:19 am

@Straight Talk

Are we doomed to repeat revisionist history?

Charles

May 17th, 2011
8:20 am

Plenty of job in Atlanta, lol, that’s why so many continue to migrate from up north to down here. But you must be a professional etc. to take advantage of the real jobs that can sustain mortgages. Headhunter plead with me and many other IT professionals with jobs 90K plus everyday. All in Atlanta metro. Get your act together and get paid. For Real!

Dave28

May 17th, 2011
8:20 am

People are so quick to blame politicians for their mortgage woes and job losses but not accept responsibilities for their own actions. That’s probably why you still don’t have a job. Job losses are sometimes something you have no control over, nor do politicians but rather the people that run the organization you work for. And since when did Obama or Bush put a gun to your head and force you to buy a home? Anyone with half a brain should’ve realized that there was a ceiling on home values before everything came crashing down. How realistic is it for a home that you paid $175k for to appreciate 50-70% in 5 years??? How could anyone afford to buy that home down the road if the values just kept skyrocketing when salaries are not? NO ONE COULD!

k483

May 17th, 2011
8:23 am

This is a conspiracy. You start by reducing the controls on lending (yeah, I know, Glass-Steagall revision was Clinton’s baby, but Phil Gramm was the ringleader), then you add to that banks and mortgage companies lending to anyone with a pulse (and sometimes no pulse), add to that the local elected officials whose greed in their own eyes saw lots of property tax revenue opportunities, so now the whole area is flooded with excess inventory, and we have a depressed market where those suckers who bought in can’t ever pay their upside-down loan. The taxpayers have to bail out the banks for their avarice as well as the defaultee’s who often don’t have any equity to lose, anyway. Man, what a country!

brad

May 17th, 2011
8:24 am

Well put, Dave.

The Gecko

May 17th, 2011
8:29 am

I work with Relocation Companies that assist there clients (Corporations) with moving their employees.

70% are moving to Texas.

Truthpaste

May 17th, 2011
8:31 am

Loss My JOB! whines … “I lost my job in 2002 under the “Bush” residency. I still have friends in the ATL who have not gotten better jobs. This problem started before President Obama took office. I lived it and saw it!!”

Something tells me you “loss” your job because your an idiot, not because of Bush. And if you “loss” your job in 2002, then you need to own that problem.

The only folks in ATL that haven’t gotten jobs need to face facts and own up that you are not a good employee. And for those of you posters that have “moved to other cities” and are yet returning to blog about your now “great jobs” – do you really think we believe that bunk? Bets are your still miserable and jobless in ATL!

Mountain Man

May 17th, 2011
8:31 am

To paraphrase Lewis Grizzard, “If I ever think about investing in real estate again, I’ll find a bank I don’t like and give them a house.”

truth

May 17th, 2011
8:32 am

Live in apartment

anyways this is due to lenders accepting anyone with a downpayment to get a house in the early to mid 2000s.

Some ppl dont take into account car payments, bills, insurance, etc when they buy a home

truth

May 17th, 2011
8:34 am

i bet some ppl filing foreclosure are the same ppl that took advantage of the 8k tax credit last year.

Knoxville Bound

May 17th, 2011
8:36 am

I agree with the very first poster. ATL is looking like the Titanic and when there are NO jobs, there is no economy! We moved to ATL in 1995 – Gwinnett. We had Technology Park in Norcross and the county was home to big employers – Motorola, Panasonic, NCR, Schlumberger, telecomunnication firms, engineering, etc. Fast forward 15 years and this is the crap we have – no jobs, no technology, no growth. All those wonderful employers bailed as the county became a cesspool. We left for greener pastures in Knoxville four years ago and it was the best decision we ever made. The economy here is AWESOME as in WHAT recession?!! Plenty of technology, high paying jobs, stable housing market, no state income tax and we get to buy beer on Sunday! It’s easy to say that the heavens are shining down upon East Tennessee! Get out of Georgia before you all drown on a ship without a life raft!

jd

May 17th, 2011
8:38 am

So, we created a bunch of jobs in construction, financed by hair-brained derivative schemes, it all fell apart, and we expect more of the same jobs how? Don’t worry, Georgia is one of the lowest corp tax states – -all them jobs are just streaming in…

Suwanee

May 17th, 2011
8:39 am

Re: Foreclosure high rate in Gwinnett. Go look at the Gwinnett Post and take a gander at the just who is getting foreclosed on, look in the archives as well. There is a direct correlation between the immigrant population boom in Gwinnett and the foreclosure rate. Yes, the Democrats wanted everybody to own a home, but they especially wanted all the immigrants (illegal as well) they enticed to come here to own the American dream.

The Gecko

May 17th, 2011
8:44 am

Norcross HS median sales price last 4 qtrs 215k, 165k, 128k, 77k current.

Double D

May 17th, 2011
8:45 am

Truthpaste- you are dead wrong about this poster. I don’t lie period and I certainly would not lie about something this important. We are talking about families and one’s Livelihood,that is pretty darn important in my book.

truth

May 17th, 2011
8:49 am

the best thing about this.

Is someone like me that bought a 289k home for 204k (short sale) in a great neighborhood, where homes are still “valued” at 275k+

What to do?

May 17th, 2011
8:52 am

I left atl 8 months ago for a better oppurtunity. I still have a home in Atl with a tenant who barely makes payment to cover the mortgage. I am at my ends and no longer want to hold on to this house its just not worth it anymore. Tried refianancing no one wants to refianance a home with zzero equity. So fustrated! What to do? Continue to hold on to home with a renter and make up the difference, or move back to ATl, or just let the home go? If I let it go what will happen to me. People foreclose but you never here what happens to you. Are they going to come after me or what?

Obozonomics

May 17th, 2011
8:52 am

Don’t worry, the recession is over and we have secured the border, everything will be fine, do you need a healthcare waiver? We have a sale this week only….

real john

May 17th, 2011
8:55 am

Knoxville Bound….Knoxvegas huh? I actually moved from Knoxville to Atlanta a few years ago. I like both places. It just depends on what you are looking for.

I will say though you are right about Knoxville. None of my friends have had a hard time finding or keeping jobs up there. Also, the real estate market barely dropped at all up there. Most areas are still appreciating.

Andy in Blairsville

May 17th, 2011
8:57 am

Welcome to the new normal as this foreclosure crisis is far from over.

With 44 million on food stamps and millions of homes 90 days or more late in need of immediate foreclosure, you can be assured there is at least another 25% drop in home values coming.