IRVINE, CA—RealtyTrac has released its Q3 and September 2015 U.S. Foreclosure Market Report, which shows a total of 327,258 US properties with foreclosure filings—default notices, scheduled auctions and bank repossessions—in the third quarter of 2015, down 5% from the previous quarter but up 3% from the third quarter of 2014.

The annual increase in the third quarter marked the second consecutive quarter where US foreclosure activity increased on a year-over-year basis following 19 consecutive quarters of year-over-year decreases.

A total of 133,811 U.S. properties started the foreclosure process in the third quarter, down 12% from the previous quarter and down 14% from a year ago to the lowest level since the third quarter of 2005.

There were a total of 123,040 US properties repossessed by the lender (REOs) in the third quarter, down less than 1% from the previous quarter but up 66% from a year ago, the largest year-over-year increase in bank repossessions since RealtyTrac began tracking quarterly foreclosure activity in the first quarter of 2008.

“The widespread rise in foreclosure activity in the third quarter compared to a year ago is the result of two starkly different trends taking place,” said Daren Blomquist, vice president at RealtyTrac. “In states such as New Jersey, Massachusetts, and New York, a flood of deferred distress from the last housing crisis is finally spilling over the legislative and legal dams that have held back some foreclosure activity for years. That deferred distress often represents properties with deferred maintenance that will sell at more deeply discounted prices, creating a drag on overall home values. On the other hand, in states such as Texas, Michigan and Washington, the third quarter increases are a sign that the foreclosure market has settled into a normalized pattern close to or even below pre-crisis levels, and in those states the overall housing market should easily absorb the additional foreclosure activity with little impact on home values.”

New Jersey foreclosure activity increased 27% from a year ago, boosting the state's foreclosure rate to the nation's highest foreclosure rate: one in every 171 housing units with a foreclosure filing during the quarter — more than twice the national average of one in every 404 U.S. housing units with a foreclosure filing during the quarter. New Jersey foreclosure starts were down 28% from a year ago, but scheduled foreclosure auctions increased 61%, and bank repossessions jumped 351%.

Florida foreclosure activity in the third quarter of 2015 decreased 17% from a year ago, but the state still posted the nation's second highest foreclosure rate: one in every 186 housing units with a foreclosure filing. Florida foreclosure starts decreased 28 percent from a year ago, and scheduled foreclosure auctions were down 46% year-over-year, but bank repossessions in Florida increased 34% from a year ago in the third quarter.

Nevada foreclosure activity in the third quarter of 2015 increased 13% from a year ago, with the third highest foreclosure rate in the nation — one in every 194 housing units with a foreclosure filing. Nevada foreclosure starts decreased 14% from a year ago, and scheduled auctions were down 14%, but bank repossessions in Nevada increased 255% from a year ago in the third quarter.

Maryland's foreclosure rate ranked No. 4 highest among the states despite nearly a 7% year-over-year decrease in foreclosure activity in the third quarter, and the Illinois foreclosure rate ranked fifth highest, despite a nearly 5% year-over-year decrease in foreclosure activity in the third quarter.

Other states with foreclosure rates ranking among the top 10 highest in the third quarter were South Carolina (one in 311 housing units with a foreclosure filing), New Mexico (one in every 322), Ohio (one in every 334), Georgia (one in every 337) and Indiana (one in every 353).

The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the quarter — broken out by type of filing. Some foreclosure filings entered into the database during the quarter may have been recorded in previous quarters. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90% of the U.S. population. RealtyTrac's report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee's Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located.