Indianapolis Foreclosures are on a decline, according to RealtyTrac’s latest numbers for the area. Foreclosure filings decreased by 27.1% from May of 2012, and are down nearly 20% from just last month in the state of Indiana. (See graphs at the bottom of the page)
Foreclosure actions increased nationally by 2.0 percent in May from April’s 75 month low point for foreclosure activity according to RealtyTrac’s U.S. Foreclosure Market Report released June 11. However, the good news is that May 2013 foreclosure filings were still 28 percent below May 2012 filings across the country.
RealtyTrac reports that approximately one in 885 homes were in some stage of foreclosure in May. This does not mean that 1 in 885 homes was lost to foreclosure, but it does indicate that documents related to some phase of foreclosure (Notice of Default, Notice of Trustee Sale, and Bank Repossession) were filed.
Actual REO’s(Real Estate Owned by lenders) increased by 11 percent in May, but were down by 29 percent as compared to May 2012. 33 states reported increases in REOs with North Carolina, Oregon and Wisconsin having the highest numbers of REO properties added.
Judicial Foreclosure States (Indiana) Lagging In Clearing Foreclosure Inventory
Foreclosure starts were up by 4 percent in May, but were 33 percent lower than for May of 2012. In Indiana and other states using judicial foreclosure, proceedings were 5 of the top 6 states for foreclosure filings. The state of Nevada, which uses non-judicial foreclosure proceedings, was second after Florida and ahead of Ohio, South Carolina and Illinois.
In general, judicial foreclosure proceedings take longer to complete than non-judicial foreclosures. This results in homes being unavailable for sale for longer periods of time. Lenders are required to complete the foreclosure process and in some cases, they must await expiration of a redemption period before a foreclosed home can be repaired and sold.
In states using non-judicial foreclosure proceedings, the time between the initial foreclosure filing and the foreclosure sale can be as little as three to four months. Quickly turning over foreclosed homes is helpful for improving regional housing markets and making more homes available for purchase. Economists have recently cited low inventories of homes as holding back housing markets in some areas.
Bank Owned Properties Provide Buying Opportunities
Lender-owned properties provide potential opportunities for first-time buyers and others seeking affordable homes. Mortgage lenders tend to offer attractive sale terms on REO properties, as their objective is to move these homes out of their inventories as quickly as possible.
Some foreclosure properties are also lacking current maintenance and are often sold as-is. DIY enthusiasts can buy and renovate foreclosed homes for owner occupancy or investment.
It’s a good idea to discuss your interest in the opportunities available for buying a Indianapolis bank-owned home with your trusted Realtor. There are specific steps that need to be taken, and depending on the property’s condition, not all financing options may be available.
Foreclosure Rates for Indiana by County:
Marion County: 1 in every 562 homes in foreclosure
Hendricks County: 1 in every 6,870
Boone County: 1 in every 1,609
Hamilton County: 1 in every 1,019
Johnson County: 1 in every 485
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