Minnesota residents might not hear much about the housing crisis anymore, but it is still on many minds as the largest rise in bank repossessions recently took place in the third quarter of 2015. According to analytics company RealtyTrac, more than 123,000 homes were repossessed by banks in a three-month period. This 66 percent increase means some states still face large problems even though new foreclosures are close to a normal rate.
The foreclosure process can take more than three years in New Jersey and New York, and a representative from RealtyTrac reported that there is no time left from legal actions taken to prevent some foreclosure activity. Distressed homes with deferred maintenance issues are facing foreclosure and hurting home values as these houses come with even more discounts than regular foreclosed homes.
Since many new properties are entering the market in New Jersey and New York, there are not enough investors to keep up with the supply of distressed homes. However, demand may increase as the distressed properties are renovated and made suitable for potential buyers.
While New Jersey has the highest foreclosure rate in the U.S. with double the national average, there is some good news for other states. California and Arizona have faster foreclosure processes, and the foreclosure rates for these states are now falling. The foreclosure levels in states like Washington, Texas and Michigan are rising, but the rates in these states are relatively close to normal.
It is sometimes possible to stop the foreclosure process as homeowners have options available to them that could include bankruptcy. Depending on the type of bankruptcy, a hold or temporary stop may occur to halt foreclosure. An owner might need to carefully consider possible solutions when facing foreclosure, and an attorney may be able to help such a client find the best plan for a given situation.