Posted by Apex Home Loans ● April 15, 2011

Foreclosures Drop 35 Percent Year-Over-Year

Foreclosure concentration by stateForeclosure activity is much slower this year than last. According to foreclosure-tracking firm RealtyTrac, the number of national foreclosure filings plunged 35 percent in March 2011 as compared to March 2010, a statistic that reflects a more healthy housing market and more robust outlook for 2011. A "Foreclosure filing" is defined as any of the following : a default notice, a scheduled auction, or a bank repossessions. Foreclosures filings were down in all but 8 states last month. Activity remains concentrated, too. More than half of all bank repossessions can be tied to just a handful of states. In March, 6 states accounted for 51% of activity.

  1. California : 15% of all repossessions
  2. Florida : 9% of all repossessions
  3. Arizona : 7% of all repossessions
  4. Michigan : 7% of all repossessions
  5. Texas : 6% of all repossessions
  6. Nevada : 5% of all repossessions

At the other end of the spectrum is Vermont. With just 5 repossessions for all of March, Vermont accounted for 0.008% of repossessions nationwide. Distressed homes remain in high demand among today's home buyers, accounting for almost 40% of all home resales. It's no wonder, either. Distresses home typically sell at a steep, 15 percent discount as compared to non-distressed properties. Buying foreclosures can be a great "deal". However, make sure you've done your homework. Buying homes from banks is different from buying a homes from "people". Contracts and negotiations are different, and homes are often sold with defects. If you plan to buy a Washington, DC foreclosure, therefore, make you you speak with a licensed real estate professional before submitting a bid. You can research a home online and learn a lot of the process, but when it's time to purchase, put an experienced agent on your side.

Topics: RealtyTrac, Foreclosures, Bank REO

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