Top Five Foreclosure States – Market Report October 2013
RealtyTrac, the nation’s leading source for comprehensive housing data recently released its October 2013 U.S. Residential and Foreclosure Sales Report including the nation’s top five states with highest foreclosure numbers.
Despite the nationwide increase of 2% from the previous month, foreclosure numbers continued to skyrocket for these particular five states:
1) Florida – 1 in every 332
In October 2013 the number of foreclosures in the state of Florida dropped by 6% from previous year. The volume of home sales dropped by 12% from previous month. For the homebuyer outlook, the average sales price of foreclosed properties was $96,000, which is 35% lower than non-distressed homes on the market.
Additional Statistics and Compensating Factors:
- Total Population: 18,511,620
- Median Household Income: $47,661
- Unemployment Rate: 7.40%
- % of Vacant Properties: 19.30%
- # of Underwater Mortgages: 31.5% of 4,125,000 properties
Florida’s foreclosure filing was 22% higher than the previous month and 6% lower than the same time last year with 93,528 foreclosed homes currently up for sale. Flagler County, FL consist of the top three cities with foreclosure numbers as frequent as 1 in every 159 properties to file for foreclosure. The top three cities are as listed below:
1. Palm Coast – (1 in every 159 properties) Currently 1,909 properties in some stage of foreclosure with 1,680 properties up for sale. (foreclosure filing was 23% higher than previous month and 63% higher than the same time last year.)
2. Bunnell – (1 in every 266 properties) Currently 149 properties are in some stage of foreclosure with 156 properties up for sale. (foreclosure filing was 18% higher than the previous month and 86% higher than the same time last year.)
3. Flagler Beach – (1 in every 346 properties) Currently 160 properties are in some stage of foreclosure with 201 properties up for sale. (foreclosure filing was 25% higher than the previous month and 200% higher than the same time last year.)
2) Nevada – 1 in every 407
In October 2013 the number of foreclosures in the state of Nevada dropped by 15% from previous year. The volume of home sales rose by 14% from previous month. For the homebuyer outlook, the average sales price of foreclosed properties was $140,000, which is 16% lower than non-distressed homes on the market.
Additional Statistics and Compensating Factors:
- Total Population: 2,633,331
- Median Household Income: $55,726
- Unemployment Rate: 9.90%
- % of Vacant Properties: 14.11%
- # of Underwater Mortgages: 36.4% of 542,000 properties
3) Maryland – 1 in every 516
In October 2013 the number of foreclosures in the state of Maryland rose by 201% from previous year. The volume of home sales dropped by 15% from previous month. For the homebuyer outlook, the average sales price of foreclosed properties was $160,000, which is 38% lower than non-distressed homes on the market.
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Additional Statistics and Compensating Factors:
- Total Population: 5,696,423
- Median Household Income: $170,647
- Unemployment Rate: 7.50%
- % of Vacant Properties: 9.93%
- # of Underwater Mortgages: 17.3% of 1,361,000 properties
4) Ohio – 1 in every 525
In October 2013 the number of foreclosures in the state of Ohio dropped by 34% from previous year. The volume of home sales dropped by 17% from previous month. For the homebuyer outlook, the average sales price of foreclosed properties was $50,000, which is 59% lower than non-distressed homes on the market.
Additional Statistics and Compensating Factors:
- Total Population: 11,512,431
- Median Household Income: $47,358
- Unemployment Rate: 7.50%
- % of Vacant Properties: 10.87%
- # of Underwater Mortgages: 18.8% of 2,139,000 properties
5) Illinois – 1 in every 552
In October 2013 the number of foreclosures in the state of Illinois dropped by 36% from previous year. The volume of home sales dropped by 17% from previous month. For the homebuyer outlook, the average sales price of foreclosed properties was $102,250, which is 45% lower than non-distressed homes on the market.
Additional Statistics and Compensating Factors:
- Total Population: 12,745,359
- Median Household Income: $55,735
- Unemployment Rate: 9.8%
- % of Vacant Properties: 9.45%
- # of Underwater Mortgages: 20% of 2,214,000 properties
Mortgage Options For Preventing Foreclosure
The Federal Home Affordable Refinance Program (HARP) may be an alternative for many homeowners who are current on their monthly payment but are struggling to keep up, would like to remain in their home, but owe more than 80% of their home’s estimated value.
The HARP Refinance program is a great solution for homeowners who are currently struggling on making their monthly mortgage payments and wish to lower that payment to a lower mortgage rate or switch to a better and shorter loan term by refinancing.
Click Here to see if you are eligible for a HARP Refinance
The Vice President of RealtyTrac, Daren Blomquist says, “The combination of rapidly rising home prices — along with strong demand from institutional investors and other cash buyers able to buy at the public foreclosure auction or an as-is REO home — means short sales are becoming less favorable for lenders.”
Foreclosures and short sales is definitely a difficult and stressful process. A foreclosure is a legal process in which the mortgage company will retain ownership of your home, in other words, “repossess your property”. A foreclosure usually occurs when a homeowner has failed to make their monthly mortgage payments and in some way violated the mortgage loan agreement or defaulted.
To avoid a foreclosure many homeowners in the past were relying on a short sale to help alleviate their financial stress. Despite the little benefits of a short sale, there are certain things that should be taken into consideration that may have a huge impact on a person afterwards, such as:
- Damage to a person’s credit
- Having to wait to purchase another mortgage in the future
- You may still be stuck with paying off this mortgage debt if the short sale did not already help eliminate the remaining mortgage balance you owed
For these reasons, the Federal Housing Administration (FHA) made an announcement on August 2013 in regards to The Buy Again After Program with an “Extenuating Circumstances Guideline” for those who have recently filed for a foreclosure, short sale, or bankruptcy to purchase another Fannie Mae mortgage as soon as 12 months as opposed to the traditional 2 year wait.
About The FHA’s Buy Again After Program
FHA’s Back to Work program for many is a second chance to buy again after having to undergo such financial hardship listed within the guidelines.
There are eligible economic events listed in the extenuating circumstance exception guidelines helping to determine eligibility, such as:
- Loss of Income
- Loss of Employment
These are two exceptions that the FHA will consider for an individual’s reason to file for a foreclosure, short sale, or bankruptcy. There are two ways you must document the reason for loss of income. One of these two ways are usually acceptable:
1.) Written Verification of Employment (VOE) with documentations of the date and the amount showing that the income has in fact dropped.
2.) Tax returns signed or W-2’s showing proof of loss income in the household.
The Extenuating Circumstances is if the loss resulted in at least a 20% drop in income or reduced income for 6 months.
For applicants with exceptional circumstances such as loss of employment, you must provide:
Written Verification of Employment (VOE) confirming the date of termination.
If loss of employment was actually due to the employer running out of business then there are a few extra requirements such as:
- Written notice of termination.
- Available public documentation of the business closing.
- Documentation of unemployment income.
Click Here to see if you are eligible for an FHA mortgage
With the Back to Work Program in effect now, many former homeowners are able to buy again as long as they can show evidence of on-time payments for the past 12 months proving that you have recovered from your losses.
If you are able to show proof of recovery in a loss of income of 12 months after filing bankruptcy, short sale or defaulting into foreclosure then the Back to work program may be something you can definitely look into if you are considering to buy again.
