Wednesday
September 3, 2014

Foreclosure Crisis Near Its End?

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Foreclosure Crisis Near Its End?

Foreclosure inventories nationwide fell 32 percent in July compared to a year ago, another sign that the foreclosure crisis may finally be over, according to CoreLogic's latest foreclosure report released Thursday. 

In July, 949,000 homes were in some stage of foreclosure, down from 1.4 million a year ago. That represents a decrease in foreclosure inventory from 3.4 percent of all homes with a mortgage in July 2012 to 2.4 percent in July 2013.

Completed foreclosures — which is a measure of all homes actually lost to foreclosure — were also down. In July, there were 49,000 completed foreclosures, down from 65,000 a year ago. That's a drop of 25 percent year-over-year. Prior to the housing crisis, completed foreclosures were averaging 21,000 a month. That means the number of foreclosures up for sale nationwide is gradually shrinking. 

“Completed foreclosures and delinquency rates continue their rapid descent in July,” says Anand Nallathambi, president and CEO of CoreLogic. “Every state posted a year-over-year decline in foreclosures, and serious delinquencies fell to the lowest level since December 2008. Not surprisingly, non-judicial states have come the farthest the fastest in reducing the shadow inventory and lowering delinquency rates.”

The following five states had the highest foreclosure inventory (as a percentage of all homes with a mortgage), according to CoreLogic: 

  • Florida
  • New Jersey
  • New York
  • Connecticut
  • Maine

Meanwhile, the following five states had the lowest foreclosure inventory: 

  • Wyoming
  • Alaska
  • North Dakota
  • Nebraska
  • Colorado

Source: CoreLogic

Read more:

In the Trenches: Walking the Foreclosure Beat
6 Questions Foreclosure Buyers Should Ask