As one of the most significant scars of the recent housing sector crisis, foreclosures serve as a constant reminder of the transgressions committed by lenders. Lenient practices dug us into a recession, the likes of which the United States had not seen for some time. However, as the housing sector appears to be on the path of sustainable recovery, foreclosures are becoming an afterthought. According to RealtyTrac, foreclosure activity posted a 15 percent month-to-month drop from October to November. This is particularly encouraging, as it is the largest drop in three years.
Data on foreclosure filings, default notices, auctions, and bank repossessions all showed big declines in the latest report.
“I think that [the housing crisis is] really in the rear-view mirror,” Daren Blomquist, vice president at RealtyTrac, told ABC News.
The number of homes entering the foreclosure process dropped off by as much as two-thirds since the peak of the crisis in 2010. The number of homes that have started the foreclosure process has fallen to its lowest level since December 2005.
“While some of the decrease in November can be attributed to seasonality, the depth and breadth of the decrease provides strong evidence that we are entering the ninth inning of this foreclosure crisis with the outcome all but guaranteed,” says Blomquist. “While foreclosures will likely continue to stage a weak rally in certain markets next year as the last of the distress left over from the Great Recession is dealt with, it is highly unlikely that there will be a foreclosure comeback that poses any major threat to the solid housing recovery that has now taken hold.”
Despite the encouraging signs of declining foreclosure statistics, there are still regions suffering. In fact, the following states highlight the areas with the highest foreclosure activity in November:
- Florida: 1 in every 392 housing units received a foreclosure filing in November (down 23% from a year ago)
- Delaware: 1 in every 480 housing units (up 141% from a year ago)
- Maryland: 1 in every 618 housing units (up 42% from a year ago)
- South Carolina: 1 in every 660 housing units
- Illinois: 1 in every 700 housing units
- Ohio: 1 in every 757 housing units
- Connecticut: 1 in every 768 housing units
- Nevada: 1 in every 859 housing units
- Iowa: 1 in every 869 housing units
- Utah: 1 in every 889 housing units