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Foreclosures plummet in a year

By Judy Martel · Bankrate.com
Tuesday, July 9, 2013
Posted: 4 pm ET

U.S. foreclosure inventory declined 29 percent in May from a year earlier, while shadow inventory in April -- those homes in serious delinquency -- dropped 18 percent from a year ago and 34 percent from the 2010 peak, according to a new report.

rich-and-famous-in-foreclosure-7-End-lgApproximately 1 million homes were in some stage of foreclosure as of May, down from 1.4 million a year earlier, a decrease of 29 percent. The foreclosure inventory accounts for 2.6 percent of all homes with a mortgage, according to the report by CoreLogic.

In May, there were 52,000 completed foreclosures, up from 50,000 in April but down from 71,000 in May 2012. Between 2000 and 2006, completed foreclosures nationwide averaged 21,000 per month.

Florida led the states with the highest number of completed foreclosures for the 12 months ending in May, with 103,000 units. California was next with 76,000, followed by Michigan with 64,000, Texas with 51,000 and Georgia with 47,000. Those five states account for almost half of all completed foreclosures nationally.

The District of Columbia had the lowest number of completed foreclosures for the same time period, with 108. It was followed by Hawaii with 453, North Dakota with 467, West Virginia with 517 and Maine with 644.

"We continue to see a sharp drop in foreclosures around the country and with it, a decrease in the size of the shadow inventory," Anand Nallathambi, president and CEO of CoreLogic, said in a statement. "Affordability, despite the rise in home prices over the past year, and consumer confidence are big contributors to these positive trends."

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7 Comments
Philip Wade
July 16, 2013 at 12:49 am

Great issue discussed in this article with details. Good going keep it up.Best luck

Jeff
July 15, 2013 at 9:34 am

More like TARP is winding down, and they are running out of homes to foreclose on!

Also the Banks had to cleanup their acts, after that $7 billion fine they had to pay, for illegally foreclosing on millions of homes!

A Housing Counselor
July 14, 2013 at 5:28 pm

Less foreclosures are also due to the consumer being made aware that short sale or Deed in Lieu (Mortgage Release) are better options for the homeowner - instead of foreclosure. More banks are offering this option to the homeowner as well - and some banks are even paying up to $3k to help the homeowner with moving costs.

Moe Reale
July 14, 2013 at 10:36 am

So right Bob. I know someone who has a mortgage with PNC. They haven't paid it in four years..still in their house!

Scott
July 14, 2013 at 7:10 am

Bob I would have to agree with you on this. this is only an attempt to create a false improvement feeling...

bob
July 14, 2013 at 2:19 am

No, I disagree. A real estate broker friend informed me that this lower percentage of foreclosures reflects only that the banks are letting people stay in their homes longer without enforcing default and eviction and also by holding back much of the foreclosure inventory already processed. Doing this helps the overall average value of the home market increase in value. Less inventory on the market equates into higher demand - higher prices. He called this an artificially stimulated second mini-bubble that is sure to play out in the next 2 to 5 yrs. in sudden decline. Once again...

Sorry, but reality and sober pessimism are neck and neck these days.