Florida NOT in the Top Five States with the Long Foreclosure Backlog

It will take more than eight years to clear out huge backlogs of foreclosures at the current pace in half of the states. Many states require court involvement in foreclosures, such as Florida, which may further slow the process.

After the robo-signing debacle of last year, lenders are doing more to make sure more proper documentation is in order when processing foreclosures, which have slowed the process of repossessing homes and created larger backlogs. 

But some cities continue to face possibly decades of large foreclosure backlogs. The good news is that Florida is not in the top five! Another indication of Florida’s stabilizing (albeit slowly) real estate market.

The following are the states with the largest backlog of foreclosures, including the state’s “pipeline ratio,” which is the time it would take to clear the supply of seriously delinquent mortgages or homes in foreclosure at the current pace of sales.

New York: 57

Washington, D.C.: 57

New Jersey: 52

Maryland: 21

Connecticut: 20

Source: “Many Cities Face Big Backlogs of Foreclosures,” RealtorMag (November 9, 2011)

Mortgage Rates Plunge to Second Lowest on Record

The 30-year fixed-rate mortgage, the most commonly chosen among home buyers, dropped to its second lowest reading on record. View the full report at Freddie Mac.

Here are how rates fared for the week:

• 30-year fixed-rate mortgages: averaged 4 percent, with an average 0.7 point, down from last week’s 4.10 percent average. The 30-year fixed-rate mortgage is the second lowest on record, just behind the 3.94 percent record reached on Oct. 6. A year ago at this time, 30-year rates averaged 4.24 percent. 
• 15-year fixed-rate mortgages: averaged 3.31 percent, with an average 0.7 point, falling from last week’s 3.38 percent average. Last year at this time, 15-year mortgages averaged 3.63 percent. 
• 5-year adjustable-rate mortgages: averaged 2.96 percent this week, with an average 0.6 point, dropping from last week’s 3.08 percent. At this time last year, 5-year ARMs averaged 3.39 percent.
• 1-year ARMs: averaged 2.88 percent this week, with an average 0.6 point, dropping from last week’s 2.90 percent average. A year ago at this time, the 1-year ARM averaged 3.26 percent. 

Contact me if you would like a recommendation for a mortgage broker for your purchase or refinance.  I’m always happy to assist.

Fed to Focus on Shoring Up the Housing Market