Completed foreclosures drop 23 percent, signal strength in recovering economy

(1/15/2013) - As the housing recovery-led economy improves, so do chances that homeowners can hang onto their homes.

CoreLogic's latest foreclosure report reveals 55,000 completed foreclosures in the nation in November 2012, down from 72,000 in November 2011, a year-over-year decrease of 23 percent.

Foreclosures also fell 6 percent from October to November last year, with the two statistics representing a definitive positive trend in reduced foreclosures, according to CoreLogic.

"We still have a long way to go to return to historic norms, but this trend is firmly in the right direction," said Anand Nallathambi, president and CEO of CoreLogic.

CoreLogic's foreclosure study includes only completed foreclosures. Before the housing market went bust in 2007, completed foreclosures averaged 21,000 per month between 2000 and 2006.

CoreLogic, RealtyTrac studies similar

CoreLogic's report is in line with the latest information from RealtyTrac where it measures all foreclosure filings - default notices, scheduled auctions and bank repossessions.

RealtyTrac's November numbers show 181,000 foreclosure filings in November, down 19 percent from a year ago and down 3 percent from October, a month earlier.

November's decline in foreclosure filings was the 26th consecutive month for year-over-year declines in foreclosure activity, according to RealtyTrac.

Properties making their way through the foreclosure pipeline are also down.

CoreLogic said Some 1.2 million homes, or 3.0 percent of all homes with a mortgage, were in the national completed foreclosure inventory as of November 2012, compared to 1.5 million, or 3.5 percent, in November 2011.

The October-to-November decline in the national completed foreclosure inventory was also down 3.5 percent, indicating the foreclosure inventory shrinkage is speeding up.

Year-over-year, the inventory of foreclosures in any stage of the foreclosure process was down 18 percent, CoreLogic said.

Mark Fleming, chief economist for CoreLogic also said short sale gains were helping to reduce the foreclosure count.

As part of the federal fiscal cliff bill, the recent extension of the Mortgage Debt Forgiveness Tax Relief Act through Dec. 31, 2013 should bring even more short sales to the table.

The provision excludes from taxation debt a lender forgives in the process of a short sale, mortgage modification with a principal reduction or other mortgage workouts.

Slow-but-steady employment gains, some wage increases, an extension of unemployment benefits, demand in the recovering housing market, and other economic gains are also helping reduce the number of foreclosures.

"The inventory of foreclosed properties continues to decline while the housing market demonstrates an ongoing ability to absorb the distressed sales that result from completed foreclosures," Fleming said.

Foreclosure activity by state

Foreclosure activity, like real estate is local, and varies from state to state.

The highest number of completed foreclosures for 12 months ending in November was: California (102,000), Florida (94,000), Michigan (75,000), Texas (58,000) and Georgia (52,000). The top five foreclosure states accounted for half of all completed foreclosures.

Five states with the lowest number of completed foreclosures for the same period were: South Dakota (10), District of Columbia (62), Hawaii (415), North Dakota (491) and Maine (597).

When it comes to inventory, the five states with the highest foreclosure inventory, as a percentage of all mortgaged homes were: Florida (10.4 percent), New Jersey (7.3 percent), New York (5.1 percent), Nevada (4.7 percent) and Illinois (4.7 percent).

The lowest foreclosure inventory percentages were recorded in Wyoming (0.4 percent), Alaska (0.7 percent), North Dakota (0.7 percent), Nebraska (0.8 percent) and South Dakota (1.0 percent).





Other related articles:

Foreclosures down, but not out in many cities

Fiscal cliff clouds otherwise rosy outlook for mortgage delinquencies, foreclosures

Housing recovery not robust enough to reduce mortgage delinquencies

First-time home buyers not always enjoying full benefits of housing recovery

'Hell No!" say one in four renters, they won't go for home ownership

Smaller mortgages, fewer foreclosures sustain housing recovery

Foreclosures: The unnatural disaster

Homeownership elusive more than 10 years after foreclosure

Fannie Mae & Jumbo Mortgage Rates

Just One Click! = Current Rate Chart

Pennsylvania Mortgage Rates Current Mortgage Rates - Hawaii Current Mortgage Rates - Alaska West Virginia Mortgage Rates Virginia Mortgage Rates District of Columbia Mortgage Rates Maryland Mortgage Rates Delaware Mortgage Rates New Jersey Mortgage Rates Connecticut Mortgage Rates Rhode Island Mortgage Rates Massachusetts Mortgage Rates New Hampshire Mortgage Rates Vermont Mortgage Rates New Hampshire Mortgage Rates Maine Current Mortgage Rates Vermont Mortgage Rates Current Mortgage Rates - New York Current Mortgage Rates - Michigan Current Interest Rates - Wisconsin Current Mortgage Rates - MINNESOTA Ohio Mortgage Rates Current Mortgage Rates - Kentucky Current Mortgage Rates - Indiana Illinois - Current Mortgage Rates Current Mortgage Rates - Iowa Missouri Mortgage Rates Current Mortgage Rates - North Carolina South Carolina Mortgage Rates Current Mortgage Rates - Florida Current Mortgage Rates - Georgia Current Mortgage Rates - Tennessee Current Mortgage Rates - Alabama Current Mortgage Rates - Mississippi Current Mortgage Rates - Louisiana Current Mortgage Rates - Arkansas Current Mortgage Rates - Oklahoma Current Mortgage Rates - TEXAS Current Mortgage Rates - New Mexico Current Mortgage Rates - Arizona Current Mortgage Rates - Kansas Current Mortgage Rates - Nebraska Current Mortgage Rates - Colorado Current Mortgage Rates - Wyoming South Dakota Mortgage Rates Current Mortgage Rates - North Dakota Current Rates - Montana Idaho Current Rates Washington Mortgage Rates Current Mortgage Rates - Oregon Current Mortgage Rates - Utah Current Mortgage Rates - Nevada Current Mortgage Rates - California

Start by selecting your state

Get the Updated and Improved Mortgage Rates App from

ERATE App - Current Mortgage Rates and Credit Cards
FREE Mortgage Rate Widgets
Your State's Rates or National Rates
Get this Widget for any State you want