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Foreclosures Ticked up in September, Downward Trend Holds

by devteam October 30th, 2014 | Share

Completed foreclosures rose slightly inrnSeptember CoreLogic said today, but the long-term trend continues to be arnrelatively precipitous drop from the record high numbers of the last sixrnyears.  The company’s September NationalrnForeclosure Report notes a 4.7 percent increase in the number of homes lost to foreclosurernduring the month relative to the August number, 46,000 units compared torn44,000.  The September total however representsrna year-over-year drop of 32.6 percent from 68,000 foreclosures the previous Septemberrn2013 and is 61 percent below the number at the peak of activity in 2010.</p

Allrn50 states posted a double-digit decline in completed foreclosures; Washington,rnDC had a 7.1 percent increase although it still remained among the areas withrnthe smallest absolute number of completed foreclosures. Five states alone accountedrnfor almost half of the foreclosures for the 12 months ending in September with 120,000rncompleted in Florida, 36,000 in Texas, and 31,000 in California.  Michigan and Georgia had 29,000 and 27,000rnrespectively. </p

Despite the large percentage declinesrncompleted foreclosures are still almost double the average in more “normal”rntimes, approximately 21,000 per month in the years 2000 to 2006. .  Since homeownership rates peaked in thernsecond quarter of 2004 7 million homes have been foreclosed, 5.2 million ofrnthem since the beginning of the financial crisis in September 2008.   </p

CoreLogic said that the foreclosurerninventory, a measure of  homes in thernprocess of foreclosure, numbered 607,000 in September, 2.8 percent lower thanrnin August and down from 924,000 one year earlier, a decrease of 34.3rnpercent.  The September inventoryrnrepresented 1.6 percent of all homes with a mortgage compared to 2.3 percent inrnSeptember 2013, the 35th consecutive month of year-over-year decreasesrnand the 20th consecutive month those reductions have been at leastrn20 percent.  Twenty-nine states showed year-over-yearrndrop in their foreclosure inventory of greater than 30 percent, with Arizonarn(-47.6 percent) and Utah (-47.1 percent) experiencing the largest declines.</p

“The level of seriousrndelinquencies has rapidly declined over the last few years, but the pace ofrnimprovement is beginning to recede,” said Sam Khater, deputy chiefrneconomist at CoreLogic.” As of June, serious delinquencies were 26 percentrnlower than the prior year, but as of September serious delinquencies were 21rnpercent lower.” </p

“The number of completedrnforeclosures ticked up a bit in September from the prior month and is stillrnrunning above historic norms,” said Anand Nallathambi, president and CEOrnof CoreLogic. “Although the foreclosure inventory and rates of seriouslyrndelinquent loans remain elevated in many states, progress is being made andrnthis bodes well for a better housing market in 2015 and beyond.”

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About the Author

devteam

Steven A Feinberg (@CPAsteve) of Appletree Business Services LLC, is a PASBA member accountant located in Londonderry, New Hampshire.

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