Foreclosure Activity Drops Throughout The Most Foreclosure-Heavy States

Foreclosure activity is slowing.  According to foreclosure-tracker RealtyTrac, the number of foreclosure filings dropped 17 percent on an annual basis last month.  Monthly filings ticked higher 1 percent after a combined 23 percent decrease through November and December 2010. 

The phrase “foreclosure filing” is a catch-all term, comprising default notices, scheduled auctions, and bank repossessions. 

January marked the third straight month of sub-300,000 filings after 20 straight months above it.

As compared to January 2010, six of the nation’s 10 most foreclosure-heavy states posted an annual foreclosure filing reduction.  The remaining four showed modest worsening.

It’s noteworthy that states like California and Florida posted declines of 7 percent and 54 percent, respectively, and that Nevada posted a relatively-low 3 percent gain.  These three states have been at the leading edge of foreclosure activity since 2007.  Their subsequent recoveries, therefore, may foreshadow a better housing market ahead. 

Wisconsin on the other hand saw the numbers increase 20.65% change from December 2010 and a 20.81% change from January 2010.  Foreclosure filings are being felt in 1 out of every 577 homes in Wisconsin.

Or, this may be lasting effects from the “robo-signer” controversy.

Regardless, Lake Geneva real estate home buyers continue to clamor for distressed homes.

According to the National Association of REALTORS®, properties in various stages of the foreclosure and short sale process are selling at discounts in the range of 10-15 percent so it’s no wonder they now account for 36 percent of all home resales.  Buying a foreclosure can be a great “deal.”  They can be more trouble and cost than they’re worth.

Therefore, If you’re in the market for a foreclosed home , be sure to speak with a licensed real estate agent.  The process of buying a distressed home is different from buying a non-distressed home.  An experienced professional can help make sure you negotiate your best possible price.