70% Increase in Foreclosures in 5 states...

18 Replies

according to RealtyTrac.

Top five states and increases:

NC  85%

OR  85%

NJ  66%

OK  58%

NY  57%

Next 5 states:

CT  51%

CO 48%

AL  24%

TX  18%

OH  17%

Some states that might be expected didn't make the list!  

David:  increase is for what period? Year to year?  Last 30 days?

What are the reasons for the jump? Is this just left overs from 07 coming to head or disconnected whole new wave? Thanks, Matt

Probably residual..there were a lot of foreclosures the banks held back..One house in my market sitting last 2 yrs..cut grass, etc...

its not only 07 props, just sold one that was foreclosed in 12 and previous bought in 10.

Very Interesting.  CA and AZ didn't make a list that has Ohio up 17%  Thanks for sharing.  

Now I've looked at the article.  3rd quarter foreclosures in Ohio are up 17% from a  year ago. 3rd quarter foreclosures in CA are up 25% from last quarter.  

Those are massive increases.  I wonder if these are judicial states just now getting foreclosures through the system after a number of years and/or the banks finally foreclosing on shadow market inventory now that prices have come back to a certain extent?  

Foreclosure rates in GA have supposedly been dropping at least according to the Atlanta Journal-Constitution.

@David Krulac  

With markets recovering in many of the states above, I suspect banks are beginning to be willing to clear non-performing inventory that they have opted to ignore since the crisis. Would be interesting also to understand how implementation of Basel III rules may be impacting banks' desire to improve the quality of their asset books. Regulators appear to care far more now about asset quality than may have previously been the case. 

@KMP

Can you share a link to the article please?  

Thanks

619‑993‑8144

Banks have legally Ben able to hold these properties now and not required to sell within a short time frame which used to be the law. They recognize they can make more money back this way. This may be the "wave" everyone was expecting to come 2011-2012 and never did.

I also feel we are seeing banks finally taking action on properties that have sat vacant. I have always suspected that the large banks created models to tell them when the right time to sell. With the sudden inflation of housing prices they probably hit their numbers and are finally cleaning house. I have personally watched houses that have sat vacant for at least 3 years suddenly show up on the MLS. It will be interesting how it affects the market this winter.

Originally posted by @Steven Zagaris :

Banks have legally Ben able to hold these properties now and not required to sell within a short time frame which used to be the law. They recognize they can make more money back this way. This may be the "wave" everyone was expecting to come 2011-2012 and never did.

That wasn't what I read in that article. This was an increase in foreclosure filings AKA notice of default in many locations. 

Although the article did mention that loans that had been delinquent for a while have now gotten moving into the foreclosure process, so being from prior years is implied.