November 2nd, 2012
Foreclosures have declined on a year-over-year basis, but continue to remain elevated across the country.
The National Foreclosure Report issued by CoreLogic reveals that completed foreclosures in September sat at 57,000, down from 83,000 during the same period last year. September statistics are also lower than completed foreclosures in August, which stood at 59,000. The report also showed that foreclosure inventory shrank to 1.4 million homes in September from 1.5 million the prior year.
“The continuing downward trend in foreclosures along with a gradual clearing of the shadow inventory are signs of stabilization and improvement in the housing market,” said Anand Nallathambi, president and CEO of CoreLogic. “Increasingly improving market conditions and industry and government policy are allowing distressed homeowners to pursue refinancing, loan modifications or short sales rather than foreclosures.”
Many consumers have shown interest in foreclosed properties, as they are often sold at a steep discount, which can make homeownership more affordable for buyers. However, real estate-owned homes may also carry some risks of the bank or previous owner did not maintain them. Before considering this option, however, speak with a mortgage servicing company about the condition of the house if it has been on the market for several months.