As Foreclosures Hit a 19-Month High, the End is Certainly Near
Foreclosure activity in the US has never been higher than in the 19-month stretch that ended in May of 2015. This time, however, it is not a sign of another housing market downturn. This recent foreclosure flurry represents the banks’ efforts to dwindle the backlog of homes currently in the foreclosure process. While this increase may hurt in the short term because it causes a drag in home values, we can certainly see the light at the end of the tunnel.
One in every 409 housing units in Florida is involved in foreclosure. It’s the highest ratio in the country for the third month in a row. Compared to the previous month of April, Florida saw a 4 percent uptick in their number of foreclosures. Other states competing for honors in this highest foreclosure competition include New Jersey, Maryland, Nevada, and Ohio.
Newly-distressed homeowners not the issue
The number of newly-distressed homeowners, meaning those who are in the beginning stages of foreclosure, are not the primary reason for this high number of foreclosures. The market is dealing with lingering properties that are almost out of the foreclosure process, in other words, homes that are finally being taken over by the banks.
Compared to the opening quarter of 2014, the foreclosure process nationwide clocked in at 48 days longer, totaling 620 days on average for Q1 of 2015. This means that more homes are in the latter stages of the foreclosure process than in the beginning. Most importantly, however, is the fact that foreclosure levels still do not rival the amount that proceeded the housing bubble burst in 2006.
The silver lining amidst this rise is that there is not a huge wave of newly-distressed homeowners, making the end of the tunnel in sight.
If you find yourself in a potential foreclosure situation, we invite you to contact the experienced West Palm Beach real estate lawyers at Kelley Kaplan & Eller today to find out how we can help you navigate through the complicated foreclosure process.