On an annual basis, foreclosure filings fell last month.Â As compared to August 2010, last monthâ€™s foreclosure filings dropped 33 percent.Â â€Foreclosure filingâ€ is a catch-all term, comprising default notices; scheduled auctions; and bank repossessions.
The study was published byÂ foreclosure-tracking firm RealtyTracÂ and this monthâ€™s report reveals a slowing rate of foreclosure within each of the Top 10 most foreclosure-heavy states.
All news is not good, however.Â
On a monthly basis, foreclosure filings spiked, led by a surge in default notices. Default notices made their biggest one-month jump since August 2007 on the way to a 9-month high last month. Default notices are the first step in the foreclosure process so this jump may foreshadow a large number of bank repossessions as foreclosures â€œmake their way through the processâ€œ.
Itâ€™s also noteworthy that just 6 states housed half of the nationâ€™s bank repossessions last month.
- California : 18 percent of bank repossessions
- Florida : 8Â percent of bank repossessions
- Georgia : 7Â percent of bank repossessions
- Michigan : 6Â percent of bank repossessions
- Texas : 6 percent of bank repossessions
- Arizona : 6Â percent of bank repossessions
As a home buyer in Sacramento , foreclosures can save you money. The National Association of REALTORSÂ® reports that distressed homes sell with typicalÂ discounts of 20 percentÂ versus comparable, non-distressed homes. However, buying a home from a bank is a different process from buying a home from a â€œpersonâ€. Contract negotiations are different and it can take months to finally close on a foreclosed home.
If youâ€™re buying a foreclosed, therefore, enlist the help of a professional real estate agent. Real estate agents can help you navigate the sometimes-complicated world of foreclosures, and help you come out ahead.