Two-Thirds of the Largest Metros See Decline in Foreclosure Activity

Foreclosure activity in a majority the nation's largest metros slowed down in the third quarter, according to a ""foreclosure report"":http://www.realtytrac.com/content/foreclosure-market-report/q3-2012-metro-foreclosure-rates-and-rankings-7448 from ""RealtyTrac"":http://www.realtytrac.com.

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From the second quarter to the third quarter of this year, 62 percent of metropolitan areas with a population of 200,000 or more saw a decrease in foreclosure activity, or 134 out of 212 metro areas.

Year-over-year, foreclosure activity was down in 131 out of 212 metro areas, representing 62 percent of the metros tracked.

RealtyTrac VP Daren Blomquist explained the decrease indicates ""most of the nation's housing markets are past the worst of the foreclosure problem.""

""In fact foreclosure activity in September 2012 was below September 2007 levels in 58 percent of the metro markets we track,"" said Blomquist.

Among the 20 largest metros, 12 saw a year-over-year decline in foreclosure activity. The biggest declines were in San Francisco (36 percent), Detroit (31 percent), Los Angeles (29 percent), Phoenix (27 percent), and San Diego (26 percent).

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At the same time, foreclosure activity shot up 69 percent in New York. Tampa (43 percent), Philadelphia (34 percent), and Chicago (34 percent) also saw significant increases in activity.

""Still, rebounding foreclosure activity in some markets remains a threat to home price stability and growth in those markets,"" Blomquist added. ""The rebounding foreclosure activity tends to be in markets where the foreclosure process slowed down most dramatically in the last two years, resulting in a buildup of foreclosures in limbo that lenders are finally working through this year.""

Seven out of 10 metros with the highest foreclosure rate were in California, despite significant decreases in foreclosure activity.

For example, Stockton ranked number one for its foreclosure rate, where one in every 67 housing units received a foreclosure filing. But, foreclosure activity in the metro fell 21 percent from a year ago.

The six other California metros in the top seven were Riverside-San Bernardino-Ontario, Vallejo-Fairfield, Modesto, Merced, Bakersfield, and Sacramento-Arden-Arcade-Roseville. All of the metros posted yearly declines in foreclosure activity by at least 20 percent. Yet, their foreclosure rates were well above the national average. For example, on average, one out of every 248 housing units receives a foreclosure filing. In those California metros, the rate of foreclosure was 2.5 to 3 times higher than the national average.

Rockford, Illinois; Chicago-Naperville-Joliet; and Miami-Fort Lauderdale-Pompano Beach took the next three spots in the top 10 for having the highest foreclosure rates. Unlike the California metros, foreclosure activity increased year-over-year in those metros, with Rockford seeing a 53 percent increase.