DEC 9, 2013 1:17pm ET

Completed Foreclosures Fall by 30% on Yearly Basis


Fewer homes were actually lost to foreclosure during October compared to the previous month and a year earlier, according to CoreLogic.

The Irvine, Calif.-based analytic provider’s monthly National Foreclosure Report revealed there were 48,000 completed foreclosures nationwide in October. This figure is down 30% from October 2012 when 68,000 foreclosures were initiated, and is approximately a 26% decrease on a monthly basis.

As of October 2013, the foreclosure inventory which stands at nearly 879,000 homes, represents 2.2% of all homes with a mortgage, down almost a full percentage point from a year ago.

Prior to the decline in the housing market, completed foreclosures averaged 21,000 per month between 2000 and 2006, CoreLogic says.

“This is good news for the housing and mortgage finance markets, but the foreclosure inventory rate remains elevated relative to the pre-crisis level of about 0.6%,” says Mark Fleming, chief economist for CoreLogic. “There are almost 900,000 properties still in foreclosure, but a normal level would only be a quarter of the current stock.”

Foreclosure inventory as a percentage of all mortgaged homes is greatest in Florida (7.1%), New Jersey (6.7%), New York (4.9%), Maine (3.8%) and Connecticut (3.7%).

Meanwhile, the five states with the highest number of finalized foreclosures in October that accounted for basically half of all completed foreclosures nationally were Florida (115,000), Michigan (50,000), California (46,000), Texas (43,000) and Georgia (39,000).

“The scourge of an elevated foreclosure inventory is easing. In October, every state posted a year-over-year decline in completed foreclosures, which is positive news,” says CoreLogic CEO Anand Nallathambi.

“Additionally, the rate of serious delinquencies, which fell more than 25% year-over-year, is at the lowest level in nearly five years, which is great news as we head into a new year.”

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments:

Already a subscriber? Log in here
Please note you must now log in with your email address and password.