CoreLogic, a leading provider of Real Estate Information, just released their National Foreclosure Report for March 2012. Compared to March 2011, the number of completed foreclosures across the nation decreased 19% to 69,000 homes in March 2012. Also, the inventory of homes in foreclosure decreased nearly 6%, or 100,000, from March 2011 to March 2012. The overall delinquency rate is at its lowest level since July 2009.
“Compared to a year ago, the number of completed foreclosures has slowed,” said Anand Nallathambi, chief executive officer of CoreLogic. “Since the foreclosure inventory is also coming down, this suggests that loan modifications, short sales, deeds-in-lieu are increasingly being used as an alternative to foreclosures to clear distressed assets in our communities. This is what was envisioned with the recent National Foreclosure Settlement, and can often be a better outcome for both borrowers and investors.”
“The overall delinquency level was unchanged in March, remaining at its lowest point since July 2009,” said Mark Fleming, chief economist for CoreLogic. “Non-judicial foreclosure markets like Nevada, Arizona, and California are experiencing significant improvements in their shares of delinquent borrowers. Some judicial foreclosure states are also improving, like Florida, but not to the extent of non-judicial markets.”
Tennessee, a non-judicial state, is showing improvement and is below national averages for foreclosures. Tennessee’s delinquency rate is currently at 5.9%, which is a 0.2% decrease over last year and 1.1% below the national average. The foreclosure inventory is also down 0.2% over last year at 1.9%. Tennessee has experienced 25,103 homes foreclosed in the last 12 months. These statistics mean that 5.9% of the homes in Tennessee have gone 90 days or more without a payment, and 1.9% of all the homes in Tennessee are in foreclosure. Nashville was not included in the Metro area statistics in this month’s report. Memphis has the highest metro foreclosure rates in the Tennessee, and Nashville is likely not high as the state average. For those speculating on the next wave of foreclosures, do not believe the hype. For more information, see my recent post on the Top 5 Myths for Buying Nashville Foreclosures.