Alabama Foreclosures Rise in November
Strategic investors and homebuyers who always aim to buy foreclosed homes at cheaper prices have all the reasons to turn their heads to Alabama. Despite the recent decline in volume of foreclosed homes in most states and in the entire US, Alabama foreclosures rose in November.
According to monthly data released by a Real Estate tracking firm, the volume of Alabama foreclosures in November jumped 39% to 2,754 units from the number in October. Compared to foreclosed homes in the state in November last year, the figure was 28% higher. It is estimated that one home in every 784 homes in the state fell into foreclosure last month.
On the national level, the volume of foreclosures dropped 21% in November compared to the volume in October. The monthly national foreclosure also declined by 14% compared to November 2009. Thus, the decline last month was a record-high since January 2005.
Foreclosures on the national level fell because of two identified factors. First, major banks’ decision to halt their foreclosure activities took toll on the volume of foreclosed homes. Lenders did so to review and revamp their respective foreclosure procedures following accusations from many homeowners in the past months that mortgage servicers mishandle documents to expedite foreclosure processes. Second, analysts note that there is a usual 7% to 10% drop in monthly foreclosures every November.
Several market observers and analysts also noted that the rise in Alabama foreclosures could have been brought about by a couple of factors. First, lenders and mortgage servicers may not have been directly affected by the foreclosure halt. Second, tax liens homes for sale may have constituted most of Alabama foreclosures that month.
Tax lien homes for sale are foreclosed properties that were repossessed by any state government agency. The action may have been caused by failure of homeowners to pay tax responsibilities for quite some time. Tax lien homes for sale are usually listed and auctioned in government repossessed foreclosures.
It is expected that the volume of Alabama foreclosures would continue to remain high in the coming months. But it could be dwarfed compared to foreclosures in other states, especially when banks decide to resume foreclosure activities in all other states.
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