Foreclosures Per Household Statistics Show Where Defaults Are Concentrating

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According to RealtyTrac, for the manyth consecutive month, foreclosures are concentrating across just a few states.  The data is skewed so badly that 44 states fall below the national average.  That's saying something.

With 1 foreclosure for every 56 households, Nevada by far leads the country.  It's default rate is six times the national average of 1 foreclosure per 355 households.  California, Arizona and Florida are a distant 2, 3 and 4.

The number of foreclosures are up 7 percent nationally.

For real estate investors and other home buyers, RealtyTrac's data can be a roadmap of sorts to finding "good deals".  Not every foreclosed home will be a gem, but there are plenty of low-priced properties just begging for a qualified buyer.

RealtyTrac lists them by ZIP code.

"Foreclosed homes" used to be a frightening phrase in real estate.  Agents were unfamiliar with them and banks didn't always know how to dispose of them.  Over the past 18 months, however, as both sides have grown more comfortable with foreclosures, the process of buying home in default has become both simpler and quicker.

This is no more apparent than in the number of first-time home buyers looking at foreclosed properties.  In the past, buying a home at auction or from a bank was the realm of the experienced real estate investor. Today, a real estate investor bidding on foreclosure may find himself competing with a first-timer, a family looking for vacation property, and households getting ready for retirement.

Buying a home in foreclosure is (almost) a non-event.

Several companies aggregate foreclosure listing including the aforementioned RealtyTrac.  It offers a completely free 7-day trial.  So does RealtyTrac competitor Foreclosure.com. Presumably, both draw from slightly different databases to register at both may make sense -- it's free for 7 days, after all.  After 7 days of free access, you should know whether a paid membership is ultimately worth it.

Foreclosures can be terrible for impacted households but to the tuned-in buyer, they can represent opportunity.