Foreclosure rates are on a downward trend, according to a report from U.S. Foreclosure Market Report.
But even though foreclosure rates are dropping, some states continue to struggle with property owners defaulting on their loans.
Last year, there were foreclosure filings on 676,535 U.S. properties, a 27 percent decline from 2016. That’s a 76 percent drop from a high of 2.9 million in 2010, and the lowest foreclosure rate since 2005, according to the report.
Going beyond these numbers, Bankrate.com evaluated the foreclosure rates for all states in September. The website concluded the following states had the highest foreclosure rates in the nation:
10. New York
Foreclosure Rate: 1 in every 1,672 housing units.
More than 3,300 New York City homes were scheduled for a foreclosure auction last year, a 58 percent increase from 2016. Foreclosures had not reached these levels since the financial crisis of 2009, according to the report from ATTOM Data Solutions.
9. Florida
Foreclosure Rate: 1 in every 1,559 housing units.
Florida has the third-highest legacy foreclosure rate of all states in the U.S., according to a recent report from ATTOM Data Solutions. In Florida, there are currently 19,494 homes in foreclosure that originated between 2004 and 2008.
8. New Mexico
Foreclosure Rate: 1 in every 1,508 housing units.
In Albuquerque, N.M., a large number of vacant homes prompted the city to develop the Albuquerque Vacant Building Registry to keep track of the problem and require property owners to maintain their buildings.
7. South Carolina
Foreclosure Rate: 1 in every 1,409 housing units.
In the first quarter of 2018, auction, pre-foreclosure and bank-owned foreclosure rates were all above 20 percent, according to a report from RealtyTrac.
6. Ohio
Foreclosure Rate: 1 in every 1,375 housing units.
According to a report from Experian, the one-month, bank-owned foreclosure rate in Ohio skyrocketed to 77.3 percent of mortgage holders from the middle of February to the middle of March of 2017.
5. Illinois
Foreclosure Rate: 1 in every 1,375 housing units.
Residents are leaving their jobs and homes behind in Illinois at elevated rates. Between July 2016 and July 2017, more residents left Illinois than any other state. Over 33,000 residents left the state due to growing tax burdens and a weak job market, according to a report from the Chicago Tribune.
4. Connecticut
Foreclosure Rate: 1 in every 1,286 housing units.
While foreclosure rates in Connecticut remain higher on average, conditions are improving. Bank-owned foreclosures dropped by 35.8 percent between March of 2016 and March of 2017.
3. Maryland
Foreclosure Rate: 1 in every 1,117 housing units.
Baltimore has a high level of tax foreclosures that remain vacant. Many of the properties in foreclosure on the city’s tax sale list have accrued over $1 million in debt over the past decade. But the homes cannot be sold to a new owner until that debt is resolved, according to a report from the Baltimore Sun.
2. New Jersey
Foreclosure Rate: 1 in every 788 housing units.
New Jersey has one of the longest foreclosure periods in the country due to a series of consumer protections that slow down the process. In the last quarter of 2017, it took 1,300 days on average to foreclose on a property, according to a report from ATTOM Data Solutions.
1. Delaware
Foreclosure rate: 1 in every 744 housing units.
Low and stagnant wages in Delaware may have contributed to the high foreclosure rate. Residents earn less than they did 15 years ago, according to a report from the U.S Census Bureau. In addition, the state’s largest employers, including Chrysler and General Motors, have left the state, while AstraZeneca and Dupont have dramatically reduced their workforce, according to a report from CNBC.
The full report can be viewed here.
