Foreclosures drop in every stateby Marcie Geffner
That prediction is based on new data recently released by CoreLogic, a property information, analytics and services company in Irvine, Calif.
According to CoreLogic, only 48,000 foreclosures were completed in the U.S. in October 2013, a sizeable drop from both year-over-year and previous-month levels which were 68,000 and 64,000 respectively.
Between 2000 and 2006, completed foreclosures averaged just 21,000 per month nationwide. But since September 2008, approximately 4.6 million foreclosures have been completed across the country.
The recent drop suggests the “scourge” of widespread foreclosures in the U.S. is easing, said CoreLogic CEO Anand Nallathambi.
Different rates in different states
The five states that had the most completed foreclosures during the 12-month period that ended Oct. 31, 2013, were:
- Florida: 115,000
- Michigan 50,000
- California: 46,000
- Texas: 43,000
- Georgia: 39,000
Together, those states accounted for almost half of all completed U.S. foreclosures.
The five states that had the fewest completed foreclosures during that 12-month period were:
- Washington, D.C.: 57
- North Dakota: 411
- Hawaii: 491
- West Virginia: 514
- Wyoming: 694
“In October, every state posted a year-over-year decline in completed foreclosures, which is positive news,” Nallathambi said. “Additionally, the rate of serious delinquencies, which fell more than 25 percent year-over-year, is at the lowest level in nearly five years, which is great news as we head into a new year.”
Foreclosure inventory shrinks
The number of homes in the foreclosure process also declined. As of October 2013, approximately 879,000 U.S. homes were in foreclosure, a 31 percent decrease compared with 1.3 million homes in October 2012.
The foreclosure inventory dropped almost a full percentage point to 2.2 percent of all homes with a mortgage from October 2012 to October 2013, according to CoreLogic Chief Economist Mark Fleming.
“This is good news for the housing and mortgage finance markets, but the rate remains elevated relative to the pre-crisis level of about 0.6 percent,” Fleming said. “A normal level would be only a quarter of the current stock.”
A home is in foreclosure when the mortgage is deemed seriously delinquent and the servicer begins the process of taking back the home. Not all foreclosures that are started are later completed since some homeowners sell their home or find a way to make the payments they’ve missed.
Approximately one-third of U.S. homes are owned outright without a mortgage.