The number of homes lost to foreclosure has fallen to its lowest
level in five years, according to new figures from the real estate
analytical firm CoreLogic.
A total of 58,000 residential foreclosures were completed in
July, down from a revised figure of 62,000 in June and a 16 percent
annual decline from the 69,000 foreclosures that were completed in
The total number of homes in the foreclosure process is down to
1.3 million, a 3.2 percent decline from 1.5 million in July 2011,
according to CoreLogic, though unchanged from the June 2012
More short sales
"The decline in completed foreclosures is yet another positive
signal that the housing market is continuing on a progressive path
of stabilization and recovery," said Anand Nallathambi, president
and CEO of CoreLogic. "Alternative resolutions are helping to
reduce foreclosures and often result in a more positive transition
for the borrower and lower losses for investors and lenders."
Alternatives to foreclosure include a significant increase in
short sales, in which at-risk homeowners are allowed to sell their
home for less than the balance owed on the mortgage, rather than
completing the foreclosure process itself, which can be costly for
Loan modifications are another alternative to foreclosure, but
recent figures from the HOPE NOW Alliance indicate that those have
been trending downward in 2012.
Repossessions concentrated in a few states
Five states accounted for nearly half of all completed
foreclosures in July, led by California with Florida, Michigan,
Texas and Georgia rounding out the list.
States with the highest proportion of properties in the
foreclosure process, as a share of all homes with mortgages, were
Florida (11.2 percent), New Jersey (5.7 percent), New York (5.2
percent), Illinois (4.9 percent) and Nevada (4.7 percent).
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