Lower Foreclosure Numbers Merely the Calm Before the Storm
RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, released its Midyear 2011 Foreclosure Market Report, which shows there was a 25 percent decrease in filings the first six months of 2011 from the previous six months and a 29 percent decrease from the first half of 2010.
“It would be nice to report that foreclosure activity is dropping as a result of improvements in the economy or the housing market,” said James J. Saccacio, chief executive officer of RealtyTrac. “Unfortunately, with unemployment rates inching back up, consumer confidence weak and home sales and prices continuing to languish, this doesn’t appear to be the case. ”
“Processing and procedural delays are pushing foreclosures further and further out,” he explains. “We estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later. This casts an ominous shadow over the housing market, where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number.”
Nevada, Arizona, California post top state foreclosure rates
Nearly 5 percent of all Nevada housing units (one in 21) received at least one foreclosure filing in the first half of 2011, giving Nevada the nation’s highest foreclosure rate during the six-month period despite continued decreases in foreclosure activity.
Arizona registered the nation’s second highest state foreclosure rate in the first half of 2010, with 2.82 percent of its housing units (one in 36) receiving a foreclosure filing, and California registered the nation’s third highest state foreclosure rate, with 1.96 percent of its housing units (one in 51) receiving a foreclosure filing during the six months.
Other states with foreclosure rates ranking among the nation’s 10 highest were Utah (1.65 percent), Georgia (1.50 percent), Idaho (1.49 percent), Michigan (1.34 percent), Florida (1.28 percent), Colorado (1.19 percent), and Illinois (1.15 percent).
Foreclosure Process Timelines and Days to Sell
U.S. properties foreclosed in the second quarter were in the foreclosure process an average of 318 days from the initial foreclosure notice to the completed foreclosure, up from a revised 298 days in the first quarter and up from 277 days in the second quarter of 2010.
The foreclosure process took the longest in New York, at 966 days on average for properties foreclosed in the second quarter, followed by New Jersey at 944 days and Florida at 676 days. Texas posted the shortest foreclosure timeline, at 92 days for properties foreclosed in the second quarter, followed by Virginia at 106 days.
U.S. REO properties that sold in the second quarter took an average of 178 days to sell from the time they were foreclosed, up slightly from 176 days in the first quarter and up from 164 days in the second quarter of 2010. REO properties took the longest to sell in New York, at 309 days, followed by New Jersey at 285 days and Minnesota at 268 days.
U.S. properties in the foreclosure process that sold in second quarter (typically short sales) took an average of 213 days to sell from the time they entered the foreclosure process, down from 228 days in the first quarter but up from 195 days in the second quarter of 2010.
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