01/13/2012

Foreclosures down 34percent from 2010

National foreclosure filings fell in 2011 to their lowest level since 2007, according to a report released today by RealtyTrac. However, there is a link  between the data and the aftermath of the robo-signing controversy, as the average U.S. foreclosure now takes 348 days to process, according to the report, and 1,019 days in New York.

About 1.9 million U.S. properties received foreclosure filings for the year, down 34 percent from 2010. One out of 69 housing units, or 1.45 percent had at least one foreclosure filing for the year, down from 2.23 percent in 2010. Each figure marks the lowest recorded since 2007. 

RealtyTrac showed Florida had the nation’s seventh highest foreclosure rate in 2011 at one in every 49 properties, or 2.06 percent of homes. The high foreclosure rate is actually a 62.5 percent decline from 2010.

P4P Comment

The “robo-signing” mentioned above refers to the scandal of loans being signed off by lenders in too short a time for sure diligence. This caused a slowing in foreclosures during 2011, but the Banks are now pressing hard to process more properties in 2012.

It could be that 2012 will be the last really good year to buy foreclosures as supply is likely to blip higher. Overall, however, it needs to be borne in mind that the wider process of clearing out all those unable to pay their mortgages is well advanced. After 2012 we see the foreclosure market going into closer balance with demand – leading to higher prices.