Home Foreclosure Trends in the U.S.

Home foreclosures are a critical indicator of the health of the U.S. housing market. A foreclosure occurs when a homeowner fails to make mortgage payments, leading the lending institution to reclaim ownership of the property. Below are some key trends related to home foreclosures in the U.S.

The approach to selling foreclosed homes varies depending on the lending institution’s marketing strategy. Banks typically categorize their foreclosed homes as “REO” (Real Estate Owned) properties. Some banks may opt not to foreclose and instead sell the loan to a real estate investor, while others may use auctions to sell their foreclosed properties. Some banks also work with real estate agents to list and sell the homes.

According to RealtyTrac, in 2018, the overall foreclosure rate in the U.S. was 1 out of every 2,042 homes. The states with the highest foreclosure rates are Delaware and New Jersey. In Delaware, 1 out of every 831 homes faced foreclosure, while in New Jersey, 1 out of every 894 homes did. Following these two states are Maryland (1/1,147), Connecticut (1/1,374), and Florida (1/1,435).

Are You Facing Foreclosure?

If you’ve received foreclosure papers, it’s time to take action. There are steps you can take to improve the situation. One option is to sell your home to a cash home investor. A cash sale can quickly pay off your lender and halt the foreclosure process. This not only stops the foreclosure in its tracks but also prevents the negative impact it could have on your credit and financial history.

If you have any foreclosure questions, contact us today!

Some foreclosed homes are sold by the lenders’ agents or realtors.