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November 23, 2014

Foreclosures Reverse Downward Trend

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Foreclosures Reverse Downward Trend

Completed foreclosures ticked up 11.8 percent in January compared to December 2013, but remained 19 percent below year-ago levels, CoreLogic reports in its latest National Foreclosure Report.

Completed foreclosures in January stood at 43,000. That remain elevated by historical standards: Completed foreclosures, which reflects the total number of homes that are lost to foreclosure, averaged 21,000 per month nationwide between 2000 and 2006.

Since September 2008 — when the financial crisis began — about 4.9 million completed foreclosures have occurred across the country, according to CoreLogic.

In January, about 794,000 homes in the U.S. were in some state of foreclosure, down from 1.2 million a year ago. January marked the 27th consecutive month for year-over-year declines, CoreLogic notes.

“We are recovering, but we’re not there yet,” says Mark Fleming, chief economist for CoreLogic. “For every completed foreclosure, there are 954 mortgaged homes in non-judicial foreclosure states and 896 mortgaged homes in judicial foreclosure states. Although this is a big improvement relative to the height of the foreclosure crisis, a healthier ratio would be one for every 2,000.”

Judicial foreclosure states, where foreclosures must be approved by the court, continue to lag the rest of the country in working through backlogs of foreclosed properties, says Anand Nallathambi, president and CEO of CoreLogic.

The five states with the highest foreclosure inventories — all homes in some stage of foreclosure — as a percentage of all mortgaged homes are: Florida (6.4%), New Jersey (6.3%), New York (4.8%), Connecticut (3.4%), and Maine (3.4%).

CoreLogic reports that five states alone account for nearly half of all completed foreclosures nationally. The following five states have the highest number of completed foreclosures for the 12 months ending in January 2014:

  • Florida
  • Michigan
  • Texas
  • California
  • Georgia

On the other hand, the following had the lowest number of completed foreclosures for the 12 months ending in January 2014:

  • District of Columbia
  • North Dakota
  • Hawaii
  • West Virginia
  • Wyoming

Source: CoreLogic

Read more:

National Foreclosure Timelines Reach 943 Days