Though residential foreclosures are nowhere near the amount seen in the recession several years back, there are still a good number of states that are seeing higher numbers. A report by ATTOM Data Solutions, the largest property database in the country, announced its Midyear 2017 U.S. Foreclosure Market Report, stating that 428,400 properties in the United States in the process of foreclosure.
Good news for the economy is that the report shows that 2017’s first quarter showed the lowest amount of foreclosures in 11 years. This also comprises bank repossessions, auctions, and default notices. The numbers for total foreclosures in June 2017 came in at 73,828, which is a 20 percent drop from last year.
Such numbers indicate that more homeowners are keeping up with their mortgages, which is good news for the economy. For real estate investors who are always on the prowl for a good foreclosure, it may take a bit more effort to find them in such a market, but believe me: they’re out there.
Senior vice president of ATTOM Data Solutions, Daren Blomquist, stated, “More than 38 percent of properties sold at a foreclosure auction in the first half of this year went to third-party buyers rather than back to the bank — the highest share we’ve ever seen going back as far as 2000, the earliest this data is available.”
Loans in delinquency status
Loans in delinquency (loans 30 days or more over due) status jumped slightly month-over-month in July, up 2.82 percent from June. That’s almost 2 million properties that are at least 30 days overdue, but not yet in foreclosure. There are around 555,000 properties at least 90 days overdue, as of July.
Top 10 states with highest foreclosure rate
According to the ATTOM Data Solution report, here are the top ten states that have the highest foreclosure rates as of June 2017.
1. New Jersey: Foreclosure Rate: 0.99 percent of housing units
2. Delaware: Foreclosure Rate: 0.73 percent of housing units
3. Maryland: Foreclosure Rate: 0.62 percent of housing units
4. Illinois: Foreclosure Rate: 0.55 percent of housing units
5. Connecticut: Foreclosure Rate: 0.50 percent of housing units
6. Nevada: Foreclosure Rate: 0.47 percent of housing units
7. Florida: Foreclosure Rate: 0.46 percent of housing units
8. South Carolina: Foreclosure Rate: 0.45 percent of housing units
9. Ohio: Foreclosure Rate: 0.44 percent of housing units
10. New Mexico: Foreclosure Rate: 0.37 percent of housing units
There are several metro areas where foreclosure pre-recession averages in the second quarter are still high, including Washington, D.C., New York, Boston, Philadelphia, Portland, Oregon, Richmond, Virginia, Providence, Rhode Island, and New Orleans.
Home Price Appreciation
According to chief economist for CoreLogic, Frank Nothaft, home-price appreciation and further job growth for the coming year will increase by around 5 percent. Essentially, this may help decrease mortgage delinquency rates in many areas of the nation.
If you’d like to learn more, check out the Midyear 2017 U.S. Foreclosure Market Report.