Santa Barbara, CA --- April 24, 2014 --- RealtyStore (www.realtystore.com), the largest provider of foreclosure and discount property listings nationwide, studied regional foreclosure inventory among states with the highest levels of seriously delinquent loans. Findings show New Jersey and Florida, the top two states with the greatest percentage of seriously delinquent loans, currently also have the greatest percentage of foreclosures listed for re-sale on the market. In contrast, New York, the state with the third highest level of seriously delinquent loans, currently has the smallest percentage of foreclosures actively listed for re-sale.
The regional hot spots identified in our study are running very high rates of seriously delinquent mortgages, as much as 35% to 120% higher than the national average. Fortunately, the leading states, New Jersey and Florida, are also showing signs of more actively marketing REO’s for resale.
On a regional basis, in the East, New Jersey and New York contain the highest percentage of loans in seriously delinquent status. In New Jersey, 1 in 8, or over 12%, of home loans are seriously delinquent, while New York shows 1 in 11, over 9%, seriously delinquent. New Jersey’s rate is also the highest in the country.
In the South, Florida follows New Jersey closely, with 1 in 9 home loans in seriously delinquent status. Illinois leads the Midwest with 1 in 14 seriously delinquent mortgages. The West finds Nevada leading the region, with a seriously delinquent loan rate of 8%, or 1 in 12 mortgages.
As these seriously delinquent mortgages proceed through the foreclosure cycle to become repossessed, or REO property, they threaten to add a drag on local housing markets. To gauge how well these same states are processing their existing REO inventory, RealtyStore evaluated their concentration of foreclosures actively listed for sale.
Florida contains the greatest percentage of REO’s actively listed for re-sale with 41% of recorded REO’s for sale across the state. New Jersey has 38% of its REO’s currently listed for sale. Illinois and Nevada follow with 33% and 32% respectively. New York lags in foreclosure listings, showing 16% of recorded REO’s currently listed for re-sale across the state. In each state, the balance of REO inventory pending listing is considered shadow foreclosure inventory.
“Nationwide, seriously delinquent loans account for 5% of all mortgages. The regional hot spots identified in our study are running seriously delinquent rates much greater, at 35% to 120% higher, or up to more than double the national average. Fortunately, the leading states, New Jersey and Florida, are also showing signs of more actively marketing REO’s for resale,” commented Ryan Fell, Chief Operating Officer of RealtyStore.com. “It will be important for each of these states to maintain healthy REO re-sale activity in order to stay ahead of the additional pending foreclosure inventory threatened by their elevated levels of seriously delinquent loans.”
See the accompanying graph for additional illustration and details.
RealtyStore (www.realtystore.com), a division of Nations Info Corporation, is the leading provider of foreclosure listings and discount property data nationwide. RealtyStore's mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize profits with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore's proprietary database includes over 2 million listings including pre foreclosures, foreclosures, auctions, short sales, lease option or rent to own, and owner financed listings.
REO properties referenced herein have completed the foreclosure process with a recording date on or before the date of this press release. REOs have been repossessed by a bank, lending institution or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders, inventory counts and prices in any area can vary at any time. REO counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data and census data is derived from third party and public records offices.