US Sees Drop in Foreclosures

The latest report from CoreLogic indicates U.S. foreclosure rates are finally falling, with more than 60 major markets reporting a decrease in foreclosure rates in February compared to …

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The latest report from CoreLogic indicates U.S. foreclosure rates are finally falling, with more than 60 major markets reporting a decrease in foreclosure rates in February compared to last year. The National Foreclosure Report shows that the number of homes with mortgages in the foreclosure inventory has dropped from 3.6% to 3.4%, or 1.4 million properties. Measured another way, the number of buyers in foreclosure has dropped 7.6% between February 2012 and last February. States with the highest foreclosure rates include Florida (12%), New Jersey (6.6%) and Illinois (5.4%), and those with the lowest are Wyoming (0.7%), North Dakota and Alaska (both at 0.8%). For more on this continue reading the following article from Property Wire.

The number of properties in the United States ending up in foreclosure has decreased slightly and is expected to continue doing so as the Spring buying season gets underway.

There were approximately 65,000 completed foreclosures in February 2012, compared to 66,000 in February 2011, and 71,000 in January 2012, according to the latest figures from CoreLogic, a leading provider of information and analysis in the real estate sector.
 
From the start of the financial crisis in September 2008, there have been approximately 3.4 million completed foreclosures and the number of completed foreclosures for the 12 months ending in February was 862,000, the firm’s National Foreclosure Report shows.

Approximately 1.4 million homes, or 3.4% of all homes with a mortgage, were in the foreclosure inventory as of February 2012 compared to 1.5 million, or 3.6%, in February 2011 and 1.4 million, or 3.4%, in January 2012.
 
Nationally, the number of borrowers in the foreclosure inventory decreased by 115,000, a decline of 7.6% in February 2012 compared to February 2011.

‘The pace of completed foreclosures is down slightly compared to January, running at an annualized pace of 670,000, but compares favorably to the pace of completed foreclosures in February a year ago. Even though the pace of completed foreclosures has slowed, the overall foreclosure inventory is decreasing because Real Estate Owned sales were up in February,’ said Mark Fleming, chief economist for CoreLogic.

‘With the spring buying season upon us, the inventory may decline further as the pace of distressed-asset sales rises along with the rest of the housing market,’ he added.

In February, more than 60 major markets saw a decrease in their foreclosure rates compared to a year ago. ‘This combined with faster REO clearing rates, better employment news, and continued historically low interest rates are all positive signs of improvement in the housing economy,’ explained Anand Nallathambi, president and chief executive officer of CoreLogic.

The share of borrowers nationally that were 90 or more days late on their mortgage payment fell to 7.3% in February 2012 from 7.% in February 2012 than the pace of REO sales, as measured by the distressed clearing ratio.
 
The distressed clearing ratio is calculated by dividing the number of REO sales by the number of completed foreclosures; the higher the ratio, the faster the pace of REO sales relative to the pace of completed foreclosures. The distressed clearing ratio for February 2012 was 0.73, up from 0.66 in January 2012.
 
The five states with the largest number of completed foreclosures during the 12 months ending in February 2012 were California at 154,000, Florida at 87,000, Michigan at 64,000, Arizona at 63,000, and Texas at 58,000. These five states accounted for 49.4% of all completed foreclosures nationally.

The five states with the highest foreclosure rates were Florida at 12%, New Jersey with 6.6%, Illinois with 5.4%, Nevada with 5% and New York with 4.9%.

The five states with the lowest foreclosure rates were Wyoming with 0.7%, Alaska and North Dakota both with 0.8%, Nebraska with 1% and Montana with 1.4%.

This article was republished with permission from Property Wire.

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