According to RealtyTrac, foreclosure rates are down 29% in the state of California during the third quarter of 2012 compared to the third quarter of 2011. This is partly due to the extra requirements that have been placed on lenders before they can foreclose on homeowners.
Because California is a non-judicial state (meaning a court does not have to approve a foreclosure), it is following this trend of lower foreclosure rates for the third quarter in 2012 along with other non-judicial states, such as Arizona, Utah, Colorado, Michigan, Oregon, and a few others. RealtyTrac reports that the foreclosure decreases in California are significantly contributing to a decreasing rate at the national level. At a 69-month low, the California foreclosure rate was 18 percent lower in September than in August of 2012.
States that are requiring the court-approved foreclosures continue to post higher rates of foreclosure, weighed down by an enormous backlog of foreclosed homes. In Florida, New Jersey, and New York, those numbers continue to rise.
Though California foreclosure rates are still high compared to other states’ rates, these new lender requirements and non-judicial foreclosure practices should continue to help California’s foreclosure statistics improve, and keep the real estate market on the path to recovery.
We are real estate experts in Irvine, California, and we would love to answer any questions you might have about the real estate market or the Irvine community. Please contact us if you would like to discuss your thoughts on the subject, or to see any of the beautiful homes you might see on our website.