When it comes to resident payment reporting and the way it relates to foreclosure rates, I’ve got good news and bad news…
The good news?
According to a monthly report from ATTOM Data Solutions, this past September, residential foreclosures fell to the lowest level since December 2005. Down nearly 24% from last year, one in 1,600 housing units had a foreclosure filing. Those include notices of default, bank repossessions and scheduled auctions.
Overall, foreclosure activity is down, and the process is taking less time. This is the first time there’s been a year-over-year decrease since ATTOM started tracking it in 2007. That’s good news for our economy and the national foreclosure problem that has been plaguing our nation since 2008.
Now, here’s the bad news, with a silver lining.
There are still several states where the economy has not bounced back. As banks continue to foreclose, those homeowners will have little choice but to become renters.
Last quarter, the average foreclosure is still taking 3 1/2 years. This means people who are behind on their loans are staying in their homes for two to five years. As those timelines decrease, the number of renters will go up.
If you’re a landlord or property manager now is a great time to start reporting your residents’ payment history. It will help you reduce delinquencies, and help your residents rebuild their credit. Resident payment reporting with Datalinx is a win-win solution for property managers and their residents. Let’s look at the states that are still struggling to recover from the foreclosure crisis:
New Mexico: Sept. 2016 foreclosure rate: 1 in 1,324 housing units
Change from past year: down 8.67%
Connecticut: Sept. 2016 foreclosure rate: 1 in 1,290 housing units
Change from past year: up 2.58%
Utah: Sept. 2016 foreclosure rate: 1 in 1,258 housing units
Change from past year: up 18.30%
South Carolina: Sept. 2016 foreclosure rate: 1 in 1,049 housing units
Change from past year: down 13.59%
Maryland: Sept. 2016 foreclosure rate: 1 in 955 housing units
Change from past year: down 1.84%
Florida: 2016 foreclosure rate: 1 in 950 housing units
Change from past year: down 33.37%
Illinois: 2016 foreclosure rate: 1 in 946 housing units
Change from past year: down 12.55%
Nevada: 2016 foreclosure rate: 1 in 897 housing units
Change from past year: down 37.72%
New Jersey: 2016 foreclosure rate: 1 in 691 housing units
Change from past year: down 34.55%
Delaware: 2016 foreclosure rate: 1 in 680 housing units
Change from past year: down 59.21%
Source: msn.com/money
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