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Foreclosure Rate by States (Two Year Change)

The steady improvement in house prices and employment coupled with the 2013 refinance boom had a significant impact on foreclosures nationally. Across the country, the foreclosure rate fell dramatically. As depicted below, no state has seen an increase in its foreclosure rate over the 8-quarter period ending in the first quarter of 2014.

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However, some states fared better than others. Florida, California, Arizona and Nevada all experienced significant declines following the bust of the sub-prime market and sharp declines in employment. However, Arizona and California experienced the sharpest declines in their foreclosure rate, respectively. By contrast, the improvements in Florida and Nevada were not as strong.

What’s more so, New York, New Jersey, Maine, Connecticut and Illinois have also experienced stubbornly slow improvement form high levels of foreclosure. The common thread among these states is that they all have judicial process for foreclosures or a process that has moved closer in that direction. While the judicial process can shelter the consumer with important protections, it can also slow or stall market clearing.

Where does your state stand? For more information on recent trends in your state, see the Local Market Reports for the first quarter of 2014.

Ken Fears, Director, Regional Economics and Housing Finance

Ken Fears is the Manager of Regional Economics and Housing Finance Policy. He focuses on regional and local market trends found in the Local Market Reports and the Market Watch Reports . He also writes on developments in the mortgage industry and foreclosures.

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Comments
  1. Mark Burns

    Good graphic for those who have emerged from the 2007-08 downturn still owning their home. A little depressing for those who pulled the short sale trigger early. It’s all about long-term hold and managing yourbudget. Something we should have as a state required course in every High School in the country.

  2. Brenda Alarcon

    That may be true for some people that just did a short sale, because they could. Most clients I have dealt with in Short Sale had to do one as they could no longer afford the payments. There are still some borrowers whether through financial loss of a job or divorce cannot still afford to hang on and all the banks are not modifying in fact I believe some are waiting for the values to go up enough and then they are still doing a foreclosure to lessen their loss.