Is the Foreclosure Crisis Over? According to ATTOM Data Solutions – YES
Daren Blomquist – senior vice president at ATTOM voices about the steady downslide of foreclosure activity in Florida in the last few years. The fact was also cemented by the U.S Foreclosure Market report for the month of September and Q3 2016 issued by ATTOM. The reported included statistics related to foreclosure activity like bank retrievals, auction agendas, and non-payment notices. September displayed foreclosures diminishing by 13% month to month and 24% year to year. Nationwide Q3 2016 shows a year over year decrease in foreclosure activity. According to Daren Blomquist – “The decrease in the average foreclosure timeline year-over-year nationwide is the final nail in the coffin of the foreclosure crisis.” This means September finally brings news of an end of the foreclosure crisis, offering a brighter perspective to real estate career. Not only there is a decrease in National foreclosures but there is also a decrease in average time taken to foreclose. Blomquist attributes this decline to the efficiency of banks in progressing foreclosure backlog, except for a few slacking ones which are fairly recent.
Increased Third Party Industrial Investor Activity in Foreclosed Property
The demise of foreclosure brings good news to investors. Increase in investor activity particularly industrial investor activity is witnessed with bank repossessions decreasing 32% year to year nationally. Percentage of property bought by 3rd party investors in foreclosure auctions increased from the pre-recession peak of 30% in Q2 2005 to 44% in Q3 2016, being the highest third party share in the attainment of foreclosure property since Q1 2000. The remaining 56% of the property gets transferred back to foreclosure lender. The institutional investor activity in foreclosure property was at a peak at 70% in Q2 2009, which is now standing at 38% in Q3 2016. But 38% in Q3 is up from 32 % in the last quarter and 26% over a year ago.
Average Time to Foreclose
For the first time in the history of records, a decrease has been seen in average time taken to foreclose. This decrease has been attained first time since Q1 2007. Foreclosure activity took an average of 630 days a year ago and 631 days in the last quarter which is now standing at 625 days. The top 5 states with long foreclosure timelines are:
- New Jersey (1,262 days)
- Hawaii (1,241 days)
- New York (1,070 days)
- Florida (1,038 days)
- Illinois (942 days).
What the report says about the State of Florida?
The state of Florida also benefits from the national-wide elation of foreclosure-gate doldrums, in getting itself up from the down strides of the foreclosure crisis. Florida progressed to the fifth position in top 5 states with highest foreclosure rates. The top 5 states having high foreclosure rates are:
- Delaware (one in every 680 housing units with a foreclosure filing)
- New Jersey (one in every 691)
- Nevada (one in every 897)
- Illinois (one in every 946)
- Florida(one in every 950).
Two Florida cities make up to top 5 in high foreclosure rates amongst large metro cities; Tampa-St. Petersburg (one in every 710 homes) ranks fourth and Jacksonville (one in every 722) ranks fifth.