Foreclosure Starts Down 13% From Last Year

Foreclosure starts increased in 18 states in August, as 99,405 properties began the foreclosure process last month, according to information released this week by RealtyTrac. That's a 1% increase from July, but a 13% decrease from last August, when foreclosure starts hit a 17-month high.

In total, RealtyTrac reported foreclosure filings -- default notices, scheduled auctions, and bank repossessions -- on 193,508 U.S. properties in August, down 15% from August 2011. Illinois posted the nation's highest foreclosure rate, according to RealtyTrac.

Interestingly, RealtyTrac noted a split between so-called judicial states, where the courts need to approve foreclosures, and the nonjudicial states. Judicial states including Florida and New York saw increases, while nonjudicial states including Arizona and California saw a downward trend.

Investors in companies like Caterpillar, Lowe's, Home Depot, and Lumber Liquidators will want to keep an eye on trends in both residential and commercial real estate, as shares in these businesses are considered plays on a large-scale housing recovery.

Longer-term investors in these four stocks are probably looking for more of the same returns they've enjoyed in the past year. Despite sluggish macroeconomic growth, shares in these four companies rose nearly 90% as a group in the past 12 months.

Jeff Fischer and team have demystified options. And they can rack up income like $1,030... $2,626... and $3,228 on a schedule you can set your watch by!
That's why we're glad to announce every single one of their closely guarded strategies is available to YOU during May and June – 100% FREE, no strings attached! Just enter your email address in the box below...

Fool contributor John Divine owns none of the stocks mentioned in the story above. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.

The Motley Fool owns shares of Lumber Liquidators Holdings. Motley Fool newsletter services have recommended buying shares of The Home Depot and Lumber Liquidators Holdings. Motley Fool newsletter services have recommended writing covered calls on Lowe's Companies. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment icon found on every comment.