US PreForeclosures By State Analysis Shows Increase In Foreclosure Filings

The last few years have seen an increase in the number of foreclosure companies in the US and this can be attributed to the increase in preforeclosures by state during the last three consecutive years. For instance, the average filings of auction sale notices, default notices, and bank repossessions increased over 20 percent in 2009. Reports by top foreclosures companies show that about 1 in every 200 homes in the US filed for foreclosure in 2009.

The increase in foreclosures filings and subsequent down shift of the housing market has availed opportunities for homebuyers and hopeful real estate investors to get homes at cheap prices. The economic recession contributed to the increase in defaults and the government’s offer to discard taxes to those who had never owned a home during the last three years made it possible for many people to own homes for the first time.

Three of the major states that experienced higher foreclosure rates in 2009 are Nevada, California and Arizona. In Nevada, the rate was 3.6% higher than the average recorded in all the states. In California, it is estimated that 1 in every 70 homes is facing foreclosure, while Arizona was the third state in terms of foreclosure filings. There is 1 in every 90 homes that faced a default notice. Apart from the aforementioned three states, others that registered significant loan default and thus higher foreclosure filings include Florida, Colorado, Ohio, Michigan, Connecticut, Georgia, and Massachusetts.

When we consider the metro areas, Los Angeles, Miami, Detroit and Las Vegas are the ones that recorded the highest filings. Florida and California metro areas made 13 of the top 20 metro areas where foreclosures are the highest. In California, the top cities where you can get the home of your dreams at a discounted rate due to the foreclosure situations are Stockton and Riverside – San Bernardino.

The reports detailing the preforeclosure situation in different states were based on 4 stages of foreclosures: LIS (Lis Pendens), NOD (notice of Default) and NTS (Notice of Trustees Sale) and NFS (Notice of Foreclosure Sale).

Investors are taking advantage of the high foreclosure rates and buying homes at a cheap price. This pre foreclosures by state analysis has outlined the states where you are likely to find a foreclosed property easily.