The Latest On America's Troubling Foreclosure Market

Photo: Flickr/mpeake

In the past five years the U.S. started the foreclosure process for more than 8.2 million homes.  It has completed 4 million of them.A new report and presentation from RealtyTrac says that there are currently at least 1.4 million U.S. properties in some state of foreclosure. Also, foreclosure activity is expected to rise from the ‘artificially low levels of 2011.’

We drew on the part of the presentation that focuses on what the foreclosure market looks like now, and what to expect in 2012.  It highlights the California housing market since it’s the largest in the country.

The bulk of homes in foreclosure are real estate owned (REO)

There are millions of homes that could soon begin the foreclosure process

28% of US property owners owe more on their mortgage than their property is worth

California's housing market continues to have huge problems

There are 5 million distressed properties that haven't hit the market

Foreclosure starts have trended lower, but are expected to increase through 2012

The number of days it takes to foreclose on a home varies by state

The good news is that foreclosure activity in 2012 is unlikely to be higher than that of 2009. It is also expected to trend lower after 2013

And the U.S. is one of the most overprices housing markets in the world...

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