As I’m called to do valuations on properties here in Central Florida I’m seeing more and more foreclosure filings. Many neighborhoods are still not out of the water yet with many home in those neighborhoods under water.
We’ve had a little over 5% uptick in home values the last few years but many home owners still have no equity. Upon further looking at many of these properties Im seeing that many are still 20 to 40% upside down, still today. And many, in some of the once desired neighborhoods are over 50% upside down in their home value. In other words, today they still owe way more than their home was worth when the purchased.
The average across the nation on the foreclosure rate was one in every 1,200 housing units was served with Foreclosure. However there are some states where the foreclosure rate was much much worse. Here are the 10 worst:
- Delaware: one in every 350 homes
- New Jersey: one in every 550 homes
- Maryland: one in every 650 homes
- Illinois: one in every 700 homes
- South Carolina: one in every 800 homes
- Nevada: one in every 820 homes
- Florida: one in every 900 homes
- Ohio: one in every 900 homes
- Pennsylvania: one in every 1,000 homes
- Georgia: one in every 1,020 homes
Data reports vary, but roughly two-thirds of today’s foreclosure filings are in the ten hardest hit states like California, Florida, Nevada, Arizona, Ohio, Alabama, Georgia and Illinois. They do say that as we continue to move through the crisis the foreclosures will expand into more parts of the country.
Why is this happening? Who knows? Could it be more ARM loans are still resetting, people are still not back to work, companies closing causing job losses or is it that people have just over used credit thinking that reports of the economy was better was forever? But from 06 till today in 2017 we are still dealing with these issues, and it looks like we will be for some time to come.