November foreclosures take a dip

Foreclosures leap 68% from a year ago even after decline in the rate.

Foreclosure filing came down in November. This was the biggest decline in foreclosure filing since April ’06. The drop was of double digit.  The drop is around 10 percent in comparison to the filings in October.

Dropping home prices may become a cause of concern for you as a home owner. As the prices go down, the foreclosure rate tends to increase. As prices go down, you will have tough time cashing on your home equity, in case of foreclosure.  So such a situations will lead to more foreclosures.

The states that saw the biggest foreclosure were in the Sun Belt and in the Rust Belt. In Sun Belt housing boom made high appreciation of the home prices and so homes were left overpriced. In the Rust Belt because of closed down industries, that has lead to job loss and economic problems, the foreclosures are increasing.

Nevada is still to show a sign of foreclosure drop. It is still in the first position in foreclosure. It recorded 1 percent increase in the foreclosure rate.

In Ohio foreclosure percent fell 6 percent in November. It is in the second place now. The foreclosure number is yet double of that was in last year November.

In California the foreclosure rate fell 20 percent. But the still the foreclosure number is 107 percent higher than the previous year.

Some showed decline in the year to year foreclosure rate.

Year to year decline in foreclosure rate
New Jersey -17 percent
Texas -15 percent and
Kansas -15 percent

The reports coming in with the reducing foreclosure numbers and decreasing foreclosure percentages, are symbols of a stabilization state. But it’s not the time to party. We need to look at it for some time before we can celebrate.