Foreclosures Dip to Levels Not Seen Since 2006
Foreclosure filings in 2013 were down 26% from 2012. These filings included notices of default, bank repossessions, and scheduled auctions. The foreclosure rate dropped to 1.04% in 2013, as one in every 96 homes reported at least one foreclosure filing. This rate is significantly lower than it was in 2010 when we saw a foreclosure rate of 2.23%.
Although this is the case there are still many homes in danger of foreclosure as borrowers owed at least 25% more than the homes actual value. Repossessions were also down 31% from 2012, as there were 463,000 homes repossessed in 2013. This is a great number considering there were more than a million repossessions in 2010.
Although the numbers as a whole look great, Florida is still the leader in foreclosures. Last year Florida saw 270,000 properties or over 3% of all housing units, that obtained at least one foreclosure filing. That’s a significant number considering it’s over twice as much as second place California.
Like Florida, Miami is the number one city in foreclosure proceedings, as one in every twenty-five homes or 96,710 properties has a foreclosure filing. This is up 44% higher than in 2011, which means that Miami is behind in bringing down its foreclosure filings. On the other hand, 2013 foreclosures filings for new matters were actually down. In 2013 there were 16,704 foreclosure filings in Miami-Dade County compared with 26,202 in 2012.
As such, in Miami, there is still a hefty backlog of foreclosures being pushed through the judicial system.
The good news, however, is that as the home market rebounds less homes are underwater. Additionally, home prices continue to increase as interest rates continue to remain at historic lows.