Daren Blomquist, RealtyTrac vicernpresident said, “While the number of vacated zombie foreclosures is down from arnyear ago, they represent an increasing share of all foreclosures because theyrntend to be the problem cases still stuck in the pipeline. Additionally, thernstates where overall foreclosure activity has been increasing over the pastrnyear – counter to the national trend – tend to be states with a longerrnforeclosure process more susceptible to the zombie problem.”</p

Blomquist said that in those statesrnwith what he called a bloated foreclosure process the increase in zombiernforeclosures is positive, signaling that banks and courts are finally movingrnforward to clear the backlog of properties that may have been in legal limbornfor years   “In many markets there is plenty of demandrnfrom buyers and investors to snatch up these distressed properties as soon asrnthey become available to purchase,” he added.</p

The percentage of vacant homes in thernforeclosure inventory soared in two states which have among the longestrnforeclosure timelines, stretching at times to near five years.  Compared to a year earlier zombiernforeclosures increased 109 percent in New Jersey to 17,983 and 54 percent torn16,777 in New York, the second and third largest totals in the country.  The numbers represented 23 percent and 19rnpercent respectively of the states’ foreclosures. </p

However, despite decreasing 35 percentrnsince the first quarter of 2013, Florida still topped the list of states in itsrnnumber of zombies, 35,903, down from 54,908 a year earlier.  This was twice the number of second place NewrnJersey and 26 percent of all foreclosures in the state.</p

</p

Illinois had 9,358 zombie foreclosuresrnat the end of January, down 40 percent from a year ago but still the fourthrnhighest state total, while California had 7,370 zombie foreclosures at the endrnof January, up 24 percent from a year ago and the fifth highest staterntotal.  </p

</p

Among metro areas the greatest numberrnwere in the greater New York area with 19,177, 17 percent of properties in thernforeclosure inventory and a 73 percent increase from a year earlier.  The number of zombies decreased from a yearrnago in the next three cities on the list, Miami, Chicago, and Tampa.  Miami was down 34 percent, Chicago 35rnpercent, and Tampa 25 percent, but the three metros still posted the second,rnthird and fourth highest number of zombie foreclosures among metro areasrnnationwide: Philadelphia, in fifth place, had a 53 percent increase in zombiesrnfrom a year earlier and they now represent 27 percent of all foreclosures inrnthat city.</p

Among large metro areas with significantrnnumbers of zombie foreclosures in the first quarter the highest share were in St.rnLouis (51 percent), Portland (40 percent) and Las Vegas (36 percent).  Metros with the largest increases in the pastrnyear were Atlantic City, New Jersey (+133 percent), Trenton-Ewing, New Jerseyrn(+110 percent), and New York (+73 percent).

All Content Copyright © 2003 – 2009 Brown House Media, Inc. All Rights Reserved.nReproduction in any form without permission of MortgageNewsDaily.com is prohibited.