These 4 States House 50% Of The Nation’s Foreclosure Filings

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If your plans to buy a home include a gander at foreclosed homes for sale, it's time to get a move on. Foreclosure activity fell to a 49-month low last month, and figures to be even lower through 2012.

As the housing market and jobs market improve, "great deals" will grow scarce.

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Foreclosures : A 4-Year Low

Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.

In December, the number of foreclosure filings nationwide fell 9 percent from the month prior, totaling just north of 205,000 filings. Not since November 2007 has foreclosure activity been this sparse.

December's drop does not appear to be seasonal, either. 

As compared to December of last year, RealtyTrac reports filings down 20 percent. A "foreclosure filing” any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession.

For all of 2011, foreclosure filings were down by one-third from 2010. That's a huge drop.

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Foreclosures Fall In California, Among Others

Foreclosure activity is way down nationwide. A major reason why is that Nevada, California, Michigan and Arizona -- four states typically associated with high rates of foreclosures -- each posted a big drop in foreclosure filings between November and December 2011, and each showed a double-digit drop over the last 12 months.

It's not Nevada, California, Michigan and Arizona that showed improvement, either. Among the country's top 10 states for foreclosure activity, foreclosure rates are falling in 9 of them. Only Delaware is worsening.

It’s also noteworthy that just 4 states accounted for half of last month's national foreclosure filings.

• California : 25.8 percent of all foreclosure filings
• Florida : 12.0 percent of all foreclosure filings
• Michigan : 6.4 percent of all foreclosure filings
• Illinois : 6.2 percent of all foreclosure filings

In other words, foreclosures are now heavily concentrated by geography. If you're a first-time buyer in the Sacramento, California area; or a move-up buyer in Miami, Florida; or even an investor in places like Chicago, Illinois or Detroit, Michigan, you should have an ample supply of foreclosed homes from which to choose, relative to other states.

If you live or purchase anywhere else, your luck may not be so strong. The last 1% of foreclosure activity nationwide is spread across 14 states.

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Get A Foreclosure-Specific Pre-Approval

Distressed homes can sell at "deep discounts" as compared to like, non-distressed homes. When you buy a home from a bank, though, it's a different process from buying from a "person". Contract negotiations are different and months may pass before your closing gets  approved.

Therefore, start strong. Get a foreclosure pre-approval letter and know your options. It's one way to make sure your foreclosure purchase is as smooth as it can possibly be.

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