Foreclosure rate declining but still high
Completed foreclosures were down 17% in October from a year ago, but still nearly triple the rate of the early 2000s. Of all homes with mortgages, 3.2% are in foreclosure.
The number of homes on which foreclosure was completed declined 17% from October 2011 to October 2012, but the rate of foreclosure still is nearly triple the average before the real-estate bust.
The latest report from CoreLogic found that 58,000 foreclosures were completed in October, compared with 70,000 last October. That compares with an average of 21,000 a month between 2000 and 2006.
The percentage of homes with mortgages in the foreclosure process fell slightly, from 3.6% last October to 3.2% in October 2012. That’s a total of 1.3 million homes. While the number remains high, it appears to be declining.
"As a result of completed foreclosures and alternative disposition methods, the foreclosure inventory [in some stage of the foreclosure process] has declined by 9% year-to-date," Mark Fleming, chief economist for CoreLogic, said in a news release. "This is good news for housing markets as we look forward to 2013."
The percentage of homes at some stage in the foreclosure process (among homes with mortgages) ranged from 0.5% in Wyoming to 11% in Florida at the end of October.
Nearly half the foreclosures completed in the past year were in five states: California (105,000), Florida (95,000), Michigan (68,000), Texas (59,000) and Georgia (54,000).
But only one of those states, Florida, ranks in the top five for percentage of mortgaged homes in foreclosure. The states with the highest percentage of mortgages in the foreclosure process were Florida (11.1%), New Jersey (7.7%), New York (5.3%), Illinois (5%) and Nevada (4.8%). Four of those states are judicial foreclosure states, which means homes stay in the foreclosure pipeline longer. Nevada is the exception.
California has only 1.8% of mortgages in foreclosure. Texas has 1.3%, Michigan has 1.5% and Georgia has 2.1%.
Another way to look at the statistics is to compare the number of completed foreclosures with the number of home mortgages. Using that measure, these are the states with the highest rate of foreclosure. The number is the number of mortgages for each foreclosure:
- Michigan: 20
- Arizona: 23
- Nevada: 26
- Georgia: 27
- Florida: 31
- Tennessee: 31
- Oklahoma: 40
- Missouri: 42
- North Carolina: 47
- Arkansas: 47
- Indiana: 48
The number in California is 51 mortgages for every completed foreclosure.
You can read the whole report but you must first register with CoreLogic.
Different companies use different ways of measuring foreclosure activity, but three major companies agree that the rate is declining. RealtyTrac reported that foreclosure activity decreased 19% from October 2011 to October 2012. Lender Processing Services reported that delinquency declined 7.19% during the same period.
The foreclosure rate is still high because the market is still reeling from the incompetence, arrogance, and corruption of Barney Frank, his boyfreind, and Chris Dodd.
What makes it worse, is the banks have been holding most of the foreclosures back from the market for the last several months under the pressure of the Federal government to create the artificial rise in prices that we've seen (making the economy look better than it really is) in order to help Obama get re-elected. Of course, eventually, the enormous inventory of foreclosures would eventually have to be dumped into the market. As I predicted before the election, that would happen after the election. Well, we are starting to see that happen. I expect that any gain in housing prices will be negated as the market feels the effect of the current expanding inventory of foreclosures being offered.
I'm an investor and 3 months ago it was very difficult if not impossible to find a foreclosed property. If you could find one, it had multiple offers in the first day and would sell for more than the list price. Now they're everywhere and are going for below the asking price..