There are some additional real estate recovery statistics that indicate more good news. In June of 2013 total foreclosure filings dropped to 127,790. This number is a 35 percent decrease as compared to 2012. It is also the lowest monthly total since December 2006!! CNN Money analysts have analyzed these numbers and CNN declared that “the long national foreclosure nightmare is nearing its end.
RealtyTrac vice president Daren Blomquist is also echoing this positive position. Mr. Blomquist stated that “the housing market could be back to pre-mortgage meltdown levels before the end of the year”. Blomquist further observed that, “it is becoming increasingly evident that foreclosures are no longer a problem nationally,” although he admitted that they might still be a small issue in “several state and local markets.”
Actual repossessions are down in 34 of 50 states last month as well. Arkansas, Oklahoma, and Maryland saw “significant increases” in these actions. If banks continue at their current rate, 2013 will see about 500,000 repossessions. This compares favorably to the 671,000 repossessions in 2012. Blomquist predicted that once the foreclosure timelines start to decline, the recovery will truly be fully underway.
Presently, it takes an average of 526 days nationally for properties to go through the entire foreclosure process. “Once that number turns the corner and starts going down, that will be a strong indication that the lenders and courts have worked through the [foreclosure] backlog and now…are dealing with the fresher vintage of foreclosures,” he said. However, I nned to point out that the “average” of 526 days for foreclosure is misleading if viewed by itself. Two out of three foreclosures end in default and those cases take less than 45 days to adjudicate. Accordingly, the ones that are contested can easily take 4 years or longer. There are valid reasons for this as distressed home owners DO have options, such as Deed in Lieu, forbearance, loan modification, short sale, quiet title and wrongful foreclosure actions.
Paddy Deighan J.D. Ph.D