It’s all over the radio and television news that home sales across the country have been rapidly increasing. You will see many articles in the newspaper about higher house values with robust sales, but are we out of the water in regards to the foreclosure crisis? Did you know that foreclosure rates are twice as high today as they were prior to the sub-prime lending crisis? Lenders offering bad credit home loans cannot take all the blame any more because there are very few lenders for subprime are originating home mortgages in today’s market. Most of the lenders are offering conventional loan product that meet the parameters for Fannie Mae and Freddie Mac and these guidelines are pretty tight. Even FHA implemented a minimum credit score a few years ago. They still offer some FHA loans for bad credit as long as the borrower has a credit score of 500.
There were 52,000 completed foreclosures in the U.S. in April, approximately the same number as in March but 10,000 fewer than one year earlier. By way of comparison CoreLogic says that the average number of foreclosures completed during the more “normal” 2000 to 2006 period was about 21,000 per month. There have been approximately 4.4 million homes lost to foreclosure since the financial crisis began in September 2008.
The states with the highest percentage of homes in the foreclosure inventory are Florida (9.5%), New Jersey (7.4%), New York (5.1%), Maine (4.4%) and Nevada (4.3%). The highest number of completed foreclosures over the 12 months period ending in April were in Florida (102,000),California (79,000), Michigan (68,000), Texas (53,000) and Georgia (47,000).These five states account for almost half of all completed foreclosures nationally.