The Wall Street Journal’s recent article “Banks Face Foreclosure Regulation By States” confirms what we’re experiencing in Georgia. While most of the article dealt with pending regulation by 25 States, it was the last paragraph that was most interesting to me. The article noted that California, which has the second highest volume of foreclosures, saw it’s percentage of mortgages in foreclosure fall to 3.3%, the 24th highest rate in the country. Just three years ago the state’s rate was 5.8%, making it the fourth highest according to the Mortgage Bankers Association.
The article notes that:
“Economists attribute that drop in the share of loans in foreclosure to the fact that California has an administrative or nonjudicial foreclosure process that doesn’t require banks to foreclose through the courts. With less srutiny banks have been able to foreclose faster.”
The number of California loans that are more than 90 days delinquent has fallen below the national average and is now in the low 6% range. This is almost a 50% decrease from the late 2009 level when the rate was over 12%.
Georgia is also a nonjudicial foreclosure state. We continue to see fewer and fewer properties coming to the courthouse steps. That combined with an abundance of buyers on the steps suggests that the supply overhang is quickly evaporating. The best areas seem to have felt the impact of this more than the average suburban location; however, the trends are in place for a continuing improvement.
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