Another Top-10 List: States With the Highest Foreclosure Filings — But There is Good News in the Trends

November 2012 foreclosure filings (default notices) were off sequentially 3 percent from October and down a resounding 19 percent from November 2011 as reported by RealtryTrac, one of the premier providers for default and foreclosure data. During November 2012, one out of every 780 houses in the U.S. received a default notice.
















See Realty Trac to view these same statistics from RealtyTrac for the other 50 states and the District of Columbia.

The foreclosure process, which varies from state to state, essentially consists of a default notice, the start of foreclosure, actual foreclosure and then, in some states, a period of time when the previous homeowner can redeem the property. As the number of default notices has waned, likewise has foreclosure starts dipped. From October 2012 to November 2012, foreclosure starts dropped 13 percent, and when compared to November 2011, were off 28 percent. Foreclosure starts in November 2012 were at a 71-month low (one-month shy of six years).

To see how the states vary, RealtryTrac has an excellent summary of state-by-state foreclosure processes, variances and redemption periods which can be viewed here.

Bank repossessions, meaning that the property is now owned by the bank – Real Estate Owned (REO), rose 11 percent from October to November 2012, and were up 5 percent when compared to a year earlier. This is due to foreclosure starts instigated from three months to several years earlier depending on the respective state’s foreclosure laws and respective timing requirements.

REO numbers (where the bank takes ownership and possession of the property) rose year-over-year in 29 states and the District of Columbia. The largest increases included:

Indiana up 96 percent
Arkansas up 88 percent
Missouri up 87 percent
New Jersey up 84 percent
Connecticut up 60 percent

REO numbers dropped in 21 states year-over-year including:

Nevada down 64 percent
Oregon down 58 percent
Massachusetts down 49 percent
Utah down 47 percent
Tennessee down 22 percent

Unfortunately, pain remains for many already in the foreclosure process and those unable today, due to economic circumstances, to meet their mortgage obligations. But the good news is that the market is indeed improving. In the past 12 months, rising home prices have resulted in an additional $760 billion in homeowner equity, with an estimated gain of $1 trillion to take place in 2013.

For a complete copy of RealtyTrac’s November report (and there are a lot of data not covered in this blog) click here.

As always, each local market is distinct and typically immune from activities elsewhere. As I have stated in the past, supply and demand for housing, other than for recreational purposes, is all local in nature.


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