By: Anthony DiMaio
There seemed to be an increase in the number of foreclosures that occurred in the first six months of 2023, with one in every 752 properties filing for a foreclosure. This is significantly lower than the traditional number of foreclosures. In the first six months of 2023, lenders foreclosed on 22,672 properties, which is 9% higher than last year. This number is significantly lower than in 2020, but nowhere near the numbers recorded in the pre-pandemic years.
During the first six months of 2023, the average length of a foreclosure process hit an all-time high due to state and local regulations of 1,212 days, translating into more than three years, a record. Not many homeowners have lost their properties, but for those who did, there was a silver lining. Because many home prices have skyrocketed by almost 40% over the last two years, these homeowners are walking away with some equity in their pocket, which is giving them the opportunity to jump back into the market, possibly at lower levels.
New Jersey #2 in Foreclosures
The state with the highest foreclosure rate was Illinois, which reported a foreclosure filing rate of 0.25%. New Jersey came in second with a foreclosure filing rate of 0.24%, followed by Maryland with a 0.23% rate and Delaware with a 0.23% rate.
Cleveland was the city most likely to have a foreclosure filing, the highest foreclosure rate in the nation, at 0.33%. Atlantic City, NJ, was next at 0.33%; Fayetteville, NC, at 0.30%; Columbia, SC, at 0.29%; and Lakeland, FL, at 0.29%.
A Note to Real Estate Investors: don’t expect a flood of foreclosed homes to burst upon the market. The increase in foreclosures is fractionally higher, hardly impacting the low levels of inventory. Plus, investors will have to compete with the pent-up demand of first-time buyers who have been waiting to jump into the market.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single-family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.
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