With U.S. foreclosures at a 10-year low, national loan performance is improving thanks to solid income growth, improved home equity, and the disappearance of high-risk loans.
According to CoreLogic, between 2017 and 2018 there was a 1.1% reduction in the percentage of homes with outstanding mortgages 30 or more days past due. However, there are many variances when looking at foreclosure rates by state.
National Foreclosure Rates
CoreLogic found that national rates have been recovering since the Great Recession when foreclosure rates peaked. They looked at the different stages of delinquency and found mortgages transitioning from current to 30 days reached just 0.9% in November of last year. This is a 1% decrease from 2017, which is a significant difference when compared to November 2008 when they peaked at 2%.
According to Bankrate, looking back to 2010, filings were 1 in 47 homes. Fast forward to 2018, and those numbers have improved with just 1 in 215. The rates have been dropping for eight years with 2018 marking the lowest rate in the past 13 years.
State by State
The foreclosure picture can look different at the state level. In fact, Bankrate noted that a third of the states saw an increase, according to ATTOM Data Solutions. They noticed increases when reviewing scheduled auctions, default notices, and repossessions. Despite these numbers, ATTOM still feels the housing crisis has more or less been “cleaned up.”
North Carolina
Due to Hurricane Florence, North Carolina is an exception to the downward trend. Although they did still see a lower rate when compared to the year previous, Bankrate found the state is still struggling to recover from the damage and impact of the disaster. Other areas still seeing above average delinquency rates included Wilmington and New Bern.
Highest Foreclosure Rates
Bankrate reported the Northeast had the most foreclosures, with New Jersey seeing its highest rate in three years. Last year, 1.33% of housing units in New Jersey had foreclosure filings. Other states on the highest foreclosures list included:
- Delaware at 0.96%
- Maryland at 0.86%
- Illinois at 0.74%
- Connecticut at 0.72%
- Florida at 0.71%
- Carolina at 0.63%
- Ohio at 0.63%
- Nevada at 0.60%
- New Mexico at 0.57%
Lowest Foreclosure Rates
As well, Bankrate found many states with drastic decreases in foreclosure. Some of the biggest dips happened in:
- Rhode Island – down 39%
- Hawaii – down 26%
- North Carolina – down 24%
- Washington – down 24%
- Connecticut – down 23%
The state with the lowest rate of foreclosures was North Dakota at 0.06%, followed by South Dakota at 0.07%, Montana at 0.11%, and West Virginia at 0.12%.
With this new data available, you might be curious to know where your state stands.
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