Here’s another indication that the housing market has turned a corner and for those of us dealing in delinquent real estate, that investment opportunity, while still robust, will begin showing signs of slowing down. In fact, while there are less than 400,000 REO assets available at this time, there are more than 4.5 million delinquent mortgages available. So while the number of distressed properties might no longer be increasing it will be a few years before investors in real estate notes will begin feeling like there are too few notes available to meet their investment needs.
According to this story in DS News, Core Logic’s January 2015 National Foreclosure Report indicates that while the foreclosure rate in judicial states is still high, the overall foreclosure rate for the nation has dropped from its February 2012 peak 0f 5.3% to 1.4%.
“The foreclosure inventory continues to shrink with declines in all 50 states over the past 12 months,” said Anand Nallathambi, president and CEO of CoreLogic.
The article points out the foreclosure rate in judicial states is as much as three times higher than that of non-judicial states, primarily because the foreclosure process in judicial states must pass through the courts and proof of delinquency must be presented, whereas in non-judicial states lenders can simply issue a notice of default to the borrower without court intervention.
To read the entire report, click here: National Foreclosure Report.