Foreclosure activities increased in Alabama for the month of November. Despite government programs designed to stop foreclosure and efforts to promote short sale investing, the number of distressed properties in the state jumped by a huge margin for the month while national levels declined in the same period.
The number of Mobile foreclosure homes plus other properties under some kind of foreclosure all around the state totaled 2,754 for November 2010. The ratio for the month was one household out of 784, with the total number representing a 39% increase compared with October 2010. When compared with November 2009, the increase was pegged at 28%. The increase is particularly bad for the state since the national foreclosure rate has declined for the same month.
While foreclosed homes in Alabama surged in November, the national foreclosure rate dipped by 21% compared with October and recorded a 14% decline when compared with November 2009. The national decline was the biggest since the first month of 2005. According to analysts, the decline in the national foreclosure rate was partly due to seasonal trends.
According to them, almost all types of activities within the housing market, including buying, selling and short sale investing, usually decline during November. They stated that most people are more interested in spending money on Christmas shopping than buying homes, while sellers are usually too busy with other things to continue marketing dwellings that are unlikely to get purchased in the first place.
In addition, industry experts believe that the robo-signing issue led to increased number of potential buyers who find foreclosure houses for sale a relatively unsafe investment right now. For the part of lenders and mortgage servicers, the controversy surrounding foreclosure processing caused them to halt foreclosures in many areas or made them more cautious in foreclosing on properties, hence the slowdown in the entry of foreclosed homes into the market.
Although short sale investing and loan modifications were heavily promoted all around the U.S., particularly in hardest hit areas like Nevada and California, these two states still made it to the top three areas with the highest rates of foreclosures for November. Nevada remains on top, followed by Utah with California ranked third. Ten states reportedly accounted for around 70% of total foreclosures nationwide for November.
For over 10 years, John Evan Miller has provided exceptional information on the foreclosure market.
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