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Single-family REO and foreclosure sales have been trending downward. According to FNC, Inc., distressed sales accounted for
18.1 percent of all home sales nationwide in the fourth quarter of 2012, down from 24.2 percent a year earlier. Out of all states, Michigan had
the highest concentration of foreclosure sales during the final three months of last year, with 56 percent of single-family home sales in the state
categorized as foreclosures. The state with the second highest percentage—Alabama—was far off of Michigan's high-water mark. Thirty-one
percent of Alabama home sales in Q4 2012 were foreclosures. Rounding out FNC's list of five states with the highest foreclosure sale ratios were
Georgia (27 percent), Illinois (26 percent), and Tennessee (25 percent). When zeroing in on market activity in metro areas, FNC found Detroit
had the highest percentage of foreclosure sales in last year's final quarter—66 percent. The metros displaying the biggest declines in foreclosure
sales over the one-year period ending with Q4 2012 were Las Vegas, Riverside, Sacramento, Phoenix, and Seattle. In Phoenix, Sacramento, Las
Vegas, and Riverside, as well as San Diego, FNC noted many buyers bought foreclosures at prices that exceeded market values. On the other
hand, FNC found discounts tended to be higher in metros located in judicial states, such as New York, Boston, and Philadelphia.
Note: The state-by-state trends are based on a compilation
of January 2013 real estate public records data and proprietary
mortgage loan performance transactions provided by
Lender Processing Services, Inc. as well as a preliminary
unemployment rate for January 2013 based upon public
information from the Bureau of Labor Statistics.
Lender Processing Services, Inc. (LPS) is a provider of mortgage and consumer loan processing
services, mortgage settlement services, default solutions, and loan performance analytics, as well as solutions
for the real estate industry, capital markets investors, and government offices. Formed from a 2008 spin-off,
LPS' predecessor companies date back nearly half a century to the early beginnings of computing and
statistical services. LPS' high-performance technology, robust data, innovative services, and award-winning
customer support are why most of the nation's top 50 banks have chosen LPS to provide the solutions they
need in today's competitive marketplace. To learn more about LPS visit lpsvcs.com.
