Bank Foreclosure List Continues to Rise in Idaho

by Donald Hanz on States

Market data showed that the number of properties on bank foreclosure list in Idaho continues to climb in June.

In Ada County, foreclosure starts reached a record high of 493 last month. The county’s default filings rose to a whopping 120 percent compared with the same month a year ago. The county’s June foreclosures shattered the previous record of 477 set the previous month.

Meanwhile, a slight drop in the number of properties on bank foreclosure list was reported in Canyon County last month. June’s total default filings in the county reached 279, representing a 9 percent decline from May. However, compared to the previous year, the county’s default filings jumped by 69 percent.

Industry experts said that the increasing number of properties on bank foreclosure list is depressing property values, resulting with many homeowners owning properties with values less than the total worth of their mortgage. They pointed out that some areas in the region have experienced a drop of almost 28 percent in property values.

Compounding the problem is the continuous increase in unemployment and the low consumer confidence in the region, industry experts added.

Meanwhile, the number of distressed properties on bank foreclosure list, including real-estate owned and short sales, rose by 4 percent last month to over 3,600 foreclosure homes throughout the region.

Short sale deals involved lenders allowing distressed homeowners to sell their properties for less than what they owed on mortgage.

The year started with about 1,540 short sales in the region. But the numbers steadily increased monthly. The numbers dropped by 6.4 percent in May but rose by 3 percent in June. Last month ended with a total of 2,643 active and pending short sale deals on the market.

Bank foreclosure list experienced a slight drop of 9.3 percent from April to May. However, it jumped by 2.5 percent last month to reach about 1,011 properties on the list.

Statewide, Idaho was among the top states in the country in terms of foreclosure rates in the first quarter of this year. During the quarter, one in every 147 homes received foreclosure notice. The state’s total foreclosure rate in May reached 8.185, with filings for bank foreclosure list reaching 1,444.