Zombie Foreclosures Nationwide Dropped 23 Percent From A Year Ago But Rose In 16 States and 60 Metros
RealtyTrac released last Thursday, October 30, their Q3 2014 Zombie Foreclosure Report where it shows that 117,298 homes in active foreclosure process has already been vacated by the homeowners before the entire foreclosure process has been completed, which represents 18 percent of all active foreclosures nationwide. All these vacated properties will probably be sold in the future through a short sale, foreclosure auction sales, or bank-owned sales.
In the third quarter of this year, there were 18 percent or 117,298 owner-vacated foreclosures across the country. The numbers are already down compared to the second quarter of 2014 with 141,406, which is down 17 percent and the third quarter of 2013, down 23 percent with 141,406 properties.
According to Daren Blomquist, RealtyTrac’s Vice President, “The most effective preventative vaccine for the blight caused by vacant, abandoned foreclosures has proven to be a short and efficient foreclosure process. Absent that, the best antidote for a zombie foreclosure infestation is a pro-active land bank program like that in Cleveland and more recently Chicago designed to aggressively take possession of vacant foreclosures and rehab or demolish them.”
“Meanwhile, markets with lengthy and lengthening foreclosure timelines have unintentionally created a zombie foreclosure breeding ground,” he added. “As we see a backlog of delayed distress finally hit the foreclosure pipeline in some of those markets, the problem is coming more to light.”
States and Metros With Increase In Zombie Foreclosures
As opposed to the current nation trend, there are 16 states across the country that saw an increase in the number of owner-vacated foreclosures compared to last year. These states are New Jersey (up 75 percent), North Carolina (up 65 percent), Oklahoma (up 37 percent), and New York (up 30 percent) and Alabama (up 29 percent).
As for metros with more than 200,000 population, 60 metros or 28 percent witnessed an increase in owner-vacated foreclosures compared to a year ago. These are the some of the metros: Trenton, N.J. (up 106 percent), Atlantic City, N.J. (up 98 percent), Rochester, N.Y. (up 49 percent), Washington, D.C. (up 40 percent), New York (up 38 percent) and Philadelphia (up 21 percent).
States and Metros With Most Vacant Foreclosures
Florida has shown to be the most zombie foreclosure nationwide with 35,913 followed by New York with 12,683, New Jersey with 12,133, Illinois with 8,678, and lastly, Ohio with 4,981.
As for the metros, New York tops the list with the most owner-vacated foreclosure with 13,366 or 12 percent of all foreclosed properties. This is followed by Miami with 9,869, Tampa with 7,509, Chicago with 7,326, Philadelphia with 5,405, and Orlando with 3,732.
States and Metros With Highest Percentage of Owner-Vacated Foreclosures
Based on the report, 33 states showed a higher percentage of vacant foreclosures compared to the national average of 18 percent. Oregon tops the list with 36 percent, followed by Nevada with 32 percent, Kansas with 31 percent, Maine with 28 percent, Michigan and Washington with 26 percent, Georgia with 25 percent, Arizona with 24 percent, and Indiana with 24 percent.
As for the metros, 117 metros showed an above-average vacant foreclosure with Las Vegas, Nevada leading the list with 33 percent. This is followed by Tampa and Palm Bay-Melbourne-Titusville, Florida with 28 percent, Rochester, New York with 27 percent, Lakeland, Florida with 27 percent and Baltimore with 25 percent.
States and Metros With Biggest Drop in Zombie Foreclosures
Zombie foreclosure numbers dropped from last year in 33 states with Missouri leading the list, as they were down 73 percent. This is followed by Virginia (down 59 percent), California (down 56 percent), Massachusetts (down 46 percent), New Hampshire (down 45percent) Illinois (down 44 percent) and Ohio (down 41 percent).
As for metros with more than 200,000 population, 138 metros or 60 percent saw a decline in zombie foreclosures. These are Portland, Ore. (down 53 percent), Cleveland (down 52 percent), Phoenix (down 52 percent), Boston (down 52 percent), and Jacksonville, Fla., (down 51 percent).
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