Nationally the foreclosure rates dropped 15% in first quarter of the year compared to the fourth quarter of last year. That is the biggest drop reported since Realty Trac, an online foreclosure marketplace, began issuing reports in 2005.
Before we start shouting hooray, we need to consider a couple of things. That drop is artificial and is occurring in many judicial-foreclosure states, which are states where in order to foreclose, banks must actually got through a court proceeding. Due to the robo-signing paperwork issue that we have heard so much about, banks have halted many proceedings while trying to clean up their process. It is not a decline in distressed properties, just a delay in moving forward with foreclosure proceedings.
Idaho is a non-judicial foreclosure state, our process is set forth in statute and is not required to go through a court hearing of any type. Thusly, we are not experiencing much of that slow down.
The Boise-Nampa metro area ranks as thirteen highest in the nation in rate of foreclosure. The first quarter of 2011 saw 3,458 fillings which equates to 1 of every 70 households. While that is a decrease of 10.58% over 4th quarter of 2010, it is a 3.01% increase over 1st quarter of 2010.
Personally, I feel that even though the temporary slow down in some parts of the country makes our rates appear worse, those foreclosures are not going away in those areas. Keeping the system moving and getting through this mess and then be able to move on is better. It is ugly anyway you slice it, but a temporary hold does nothing to eliminate the problem.
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