313,841 foreclosure filings were made in June, according to foreclosure-tracking firm RealtyTrac. The figure represents a 3 percent drop from May and 7 percent drop from June of last year. However, foreclosure filings remain relatively high nationwide.
June marks the 16th straight month the filings topped 300,000. 1 in every 411 U.S. homes received some form of notice last month with foreclosure density varying wildly from state-to-state.
Like everything else in real estate, it seems, foreclosures are a local phenomenon.
The states with the highest foreclosures per capita were:
- Nevada : 1 foreclosure filing per 88 homes
- Florida : 1 foreclosure filing per 171 homes
- Arizona : 1 foreclosure filing per 189 homes
The states with the lowest foreclosures per capita were:
- Vermont : 1 foreclosure filing per 26,051 homes
- West Virgina : 1 foreclosure filing per 8,058 homes
- South Dakota : 1 foreclosure filing per 6,528 homes
Overall, 40 states beat the national Foreclosure Per Capita average and 10 states fell below. The sheer volume of REO, though, is creating interesting buying opportunities for first-timer buyers, move-up buyers, and real estate investors.
Homes bought from banks are usually less expensive than non-foreclosure homes. This is one of the major reasons why distressed sales account for roughly 30 percent of all home resales. Less expensive, though, doesn’t always mean “cheaper”. Foreclosed homes are often sold as-is and may be defective or otherwise uninhabitable.
Making repairs to get these homes into “living condition” can be costly.
Therefore, if you’re buying a foreclosed home, make sure you know what you’re buying before you make your bid. Have a certified professional inspect the home to check for damage, and consider enlisting the help of a real estate agent to assist with negotiations and management of the contract.
The process of buying a foreclosed home is different from buying a typical resale. Make sure you do your homework.