Good news continues to pour in for homeowners everywhere as nationwide foreclosure rates fall to an 11-month low. In some portions of the country, the low foreclosure rates are nearing a 2-year record as the economy and housing market recover. The national rate fell to 2.9 percent and is 1.2 percent lower than the similar time period in 2012. An influx of jobs as well as a stronger housing market are large contributors to the continued improvement of foreclosure rates.
Analyzing the Improved Foreclosure Rates
The peak in delinquency rates among homeowners was in 2007, right before the stock market crash of 2008. The main driver behind an underwater mortgage falling to foreclosure is when the homeowners realize that the home’s value is less than the amount they owe. When this happens, they become discouraged and don’t see a point in keeping up with payments, which eventually leads to foreclosure.
Since home values have been steadily increasing in certain areas of the country, homeowners have been more incentivized to keep up with their mortgage debt payments. Regardless, some states such as Connecticut have actually seen their foreclosure rates increase as the rest of the country improves. Connecticut is one of 6 states alongside 13 major metropolitan areas that have seen foreclosure rates rise. Considering that the average wage has fallen by 2.4 percent in Connecticut with up to an 11 percent drop in specific industries, it’s no wonder that Connecticut is struggling compared to states like Texas.
In Texas, 1.12 percent of owed mortgage loans have fallen into foreclosure. This is less than the 1.41 percent in January. State-wide, Texas also has a relatively healthy delinquency rate of 4.04 percent. Regardless, Texas continues to be one of the bright spots in the United States for the housing market. For those struggling to keep pace with their mortgage payments, seeking the advice of a foreclosure attorney can help you determine what course of action or money management planning is best for you.