Local Foreclosure Pace Slowing Down

AREA STILL LEADING THE STATE IN TOTAL FILINGS

By Kim Souza

Posted: November 12, 2009 at 4:11 a.m.

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SPRINGDALE — Benton County reported 485 foreclosure filings in October, which is down 1.22 percent from a year ago. This marked the first year-over-year decline since late 2007, according to Realtytrac, an independent source for tracking foreclosures across the nation.

Washington County reported 394 foreclosure filings last month, up 41.73 percent from the prior year. While this county has yet to reverse its upward trend, the number of fillings continue to decline monthly from triple digit increases reported earlier this year.

Through the first 10 months of 2009 Benton and Washington counties have reported 3,103 foreclosure filings, compared with 2,228 in the prior year.

The combined counties continue to lead the state in foreclosure activity. Arkansas’ foreclosure filings totaled 1,892, down 0.16 percent from a year ago. Nationwide the 332,292 filings reported in October were 19 percent higher than last year.

The recent improvement in Benton County was no more than a baby step in the right direction, according to Jeff Collins, economist with Streetsmart Data Services in Johnson.

His words echoed those of Realtytrac chief operating officer, James Saccacio, who said it’s still too early to celebrate any real significant improvements as the fundamental forces driving the foreclosure market — high risk loans, negative equity and unemployment — continue to loom over any nascent recovery.

Collins said declining home values in Northwest Arkansas are flattening out as supply and demand become more aligned.

“The residential market has bottomed. Modest, gradual improvements are expected to continue over a fairly long recovery period,” Collins said. “Unemployment here continues to be less severe than most other areas.”

He expects foreclosure activity will also flatten but remain higher than normal throughout the next year.

One in every 175 Benton County households face possible foreclosure. The county reported 38 notices of default, 232 notices of trustee sale and 215 properties already taken back by the primary mortgage lender, according to Realtytrac.

Collins said Benton County was hit harder by foreclosures than other areas across the state primarily because of its population explosion in the late 1990s that prompted the residential building boom that went bust three years ago.

In Washington County, one in every 208 households were 60 days or more delinquent on their mortgage last month. Realtytrac reported 22 default notices, 226 notices of trustee sale and 146 properties already recovered by the lender.

By The Numbers

Foreclosure Filings

October 2009, compared to same month last year

Northwest Arkansas Counties

Benton 485 filings, down 1.22 percent

Washington 394 filings, up 41.7 percent

Carroll 0 filings, down 100 percent

Southwest Missouri

McDonald 4 filings, up 200 percent

Source: Realtytrac

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