In September, the United States total foreclosure filings dropped to a five-year low. On a nationwide level, the total foreclosure filings fell seven percent from August and sixteen percent from September 2011. Also, during that month, about 180,427 foreclosure filings were reported and according to experts, this is the fewest since the midst of the initial housing market bust. RealtyTrac.Com, estimated that the national average for foreclosure of properties in 2012, is one in every 681.
Foreclosure starts to max out in April 2009 at around 203,000. Presently, it is still well above the 34,000 mark recorded in May 2005, prior to the disintegration of the housing market. The biggest drops were recorded in the following states: California, Arizona, Michigan, Georgia and Texas. These are the non-judicial states, in which court approval is not necessarily required for foreclosures. The reason behind the decline of foreclosure activity in non-judicial states is the widespread claims that lenders had been processing foreclosures with no proof that the documents have been verified.
Experts believe that the low foreclosure rate is expected to continue unevenly because of the different approaches of handling foreclosures in the different states. The foreclosure process can be quick or lengthy depending on the state. To avoid foreclosures, there are companies offering refinancing, short sale, alternate financing and temporary arrangements with the lender. Filling for bankruptcy, which can negatively affect the person’s credit rating may present homeowners with ways on how to avoid the house to be foreclosed.
Foreclosure rates, which are still high in many regions, reflect the health of real estate in the metro areas. Those with the largest annual increases in Foreclosures were New Jersey, Pennsylvania, New York, Washington state and Florida. Florida which is considered as the 4th most populous and the 8th most densely populated of the 50 United States have highest foreclosure rate in the country last month. On the other hand, according to the report of fox4now.com, Core Logic, a leading provider of financial, property and consumer information, release a report that Southwest Florida foreclosures
Statistics reveals that the foreclosure rates in July 2011 were moving toward 11 percent, which is low from last year’s figure of12.75 percent. Still, it is higher than the national foreclosure rate of 3.4 percent. Arizona, California, Illinois and Georgia are also on top of the list of states with the highest foreclosure rates in September.