CoreLogic Releases Foreclosure Crisis Decade In Review
As of the end of 2016, the national foreclosure inventory, which reflects all homes in some stage of the foreclosure process, included approximately 336,000 properties – or 0.9% of all homes with a mortgage – compared with 1.4 million homes, or 3.3%, at the peak of the residential foreclosure crisis in September 2010, according to CoreLogic’s recently released U.S. Residential Foreclosure Crisis Decade In Review.
The 10-year retrospect shows how much the U.S. has healed from the residential foreclosure crisis. Basically, it shows that monthly foreclosure levels are now around where they were in the pre-crisis years – with about 22,000 completed foreclosures per month.
“The foreclosure crisis began in some parts of the country as early as 2007 and later peaked nationwide in September 2010, with approximately 120,000 completed foreclosures occurring during that single month,” the report states. “Since the beginning of 2007, there have been approximately 7.8 million completed foreclosures nationally. Beginning in the second quarter of 2004, when homeownership rates peaked, there have been approximately 8.6 million homes lost to foreclosure.”
“The country experienced a wild ride in the mortgage market between 2008 and 2012, with the foreclosure peak occurring in 2010,” says Frank Nothaft, chief economist for CoreLogic, in a release. “As we look back over 10 years of the foreclosure crisis, we cannot ignore the connection between jobs and homeownership. A healthy economy is driven by jobs coupled with consumer confidence that usually leads to homeownership.”
As of the end of 2016, about 1 million mortgages, or 2.6% of all homes with a mortgage, were in serious delinquency (90 days or more past due) compared with the serious delinquency peak of 3.7 million mortgages, or 8.6%, in January 2010.
Share Of Foreclosure Auctions Going To Third-Party Buyers Hit Record High
Distressed sales of single-family homes and condos fell to 16.2% of all sales in 2016 – down from 18.8% of all sales in 2015 to reach the lowest level since 2007, according to a recent report from ATTOM Data Solutions.
Distressed sales include bank-owned sales, short sales or foreclosure auctions sold to third-party buyers.
Metro areas with the highest shares of total distressed sales during 2016 included Atlantic City, N.J. (43.8%); Hagerstown-Martinsburg, Md.-W.V. (33.2%); Rockford, Ill. (29.2%); Montgomery, Ala. (29.2%); and Baltimore (28.0%).
Bank-owned (REO) sales accounted for 8.0% of all sales – down from 10.0% in 2015 to reach the lowest level since 2006.
Short sales accounted for 5.5% of all home sales in 2016 – down from 6.0% in 2015 to reach the lowest level since 2008.
Foreclosure auction sales (trustee’s sales or sheriff’s sales) selling to third-party investors (not including those going back to the foreclosing lender) accounted for 2.8% of all home sales – down from 2.9% in 2015 to reach the lowest level since 2007.
“The housing market hit several important milestones in 2016, with distressed sales at a nine-year low and home prices at a 10-year high, just barely below the pre-recession peak in 2006,” says Daren Blomquist, senior vice president at ATTOM Data Solutions, in a statement. “This was all good news for home sellers, who realized their biggest average profits since purchase nationwide in 2016. Even distressed property sellers are benefiting from this hot seller’s market, with a record-high share of homes at foreclosure auction being purchased by third-party buyers rather than reverting back to the foreclosing bank.”
The share of foreclosure auctions sold to third-party buyers hits a record high of 28.5% in 2016. That’s up from 23.5% in 2015 to reach the highest level since 2000, the earliest for which ATTOM has data available.
A total of 96,438 single-family homes and condos were sold to third-party buyers at foreclosure auctions in 2016.
SouthLaw Hires Two Associate Attorneys For Its Iowa Foreclosure Department
SouthLaw PC, a law firm servicing the mortgage default servicing industry, recently hired two new associate attorneys for its Iowa Foreclosure Department located in the firm’s West Des Moines, Iowa, office.
James J. Larson, who joined the firm in January, has a bachelor’s degree in finance/accounting from the Drake College of Business and Public Administration and a law degree from Drake University Law School. He is currently admitted to practice law in both state and federal courts in Iowa.
Bryan M. Loya has a bachelor’s degree in international business from the Drake University and a law degree from Drake University Law School. He is currently admitted to practice law in both state and federal courts in Iowa.
Both Larson and Loya currently focus their practices on representing financial institutions and creditors’ rights in real estate finance and mortgage foreclosure.