Foreclosure Timelines Are Shrinking

07/09/2014 04:31 PM (CST)

As lenders are rushing to clear the foreclosure inventory, judicial states still lag behind non-judicial, according to the latest report by CoreLogic.

The foreclosure inventory in judicial states is averaging 2.1%, which is more than twice the 0.9% average that is occurring in non-judicial state.

According to the Housing Wire, the top non-judicial states, Michigan, Texas and California, recorded a .7%, .7% and .6% foreclosure inventory, with 44,402, 38,649 and 33,940 completed foreclosures in the last 12 months, respectively.

At the same time, the top judicial states, Florida, Ohio and Illinois, posted a 5.2%, 1.7% and 2.4% foreclosure inventory, with 122,059, 28,609 and 21, 558 completed foreclosures in the last 12 months, respectively.

As of May 2014, there were approximately 660,000 homes in the nation in some stage of foreclosures, compared to 1 million in May 2013, a year-over-year decrease of 37%.

Foreclosure inventory as of May 2014 represented 1.7% of all homes with a mortgage, compared to 2.6% in May 2013.

The foreclosure inventory was down 4.8% from April 2014, marking 31 months of consecutive year-over-year declines.

According to National Closing Center (NCC), a short sale processing company and a sister company of RealtyProx, foreclosure timelines in judicial states such as Illinois and Florida, are shrinking. NCC has seen more homeowners get foreclosed on now than 2-3 years ago. Furthermore, lenders take less time to foreclose as well.

According to NCC, it is imperative that homeowners considering a short sale start the process as soon as possible. It is no longer safe to assume that lenders are not going to act swiftly and that they have years before the final eviction.

If property is listed and there are bona fide offers, generally, banks won’t move forward with foreclosure event if there is a set sale date.