Increase in Bank Repossessed Homes in May

by on Repo Homes

For Sale Sign and a House

The real estate market has been improving throughout much of the county with rising home prices and declining foreclosure activity; however, May reports show that there was an increase in bank repossession – an 11% increase from April to May of this year.

Specifically, 33 states studied experienced an increase in bank repossession of homes in May. North Carolina for example experienced a 60% increase with Oregon seeing a 57% rise in bank repossession. However, bank repossession fell 29% from May 2012 to May 2013, showing that overall the market is still making significant progress.

Furthermore, there was a 4% increase in foreclosure starts from April to May of this year. Although these numbers may seem discouraging, rest assured that all is well when it comes to real estate and progress is still being made. Foreclosure starts dropped 33% from May 2012 to May 2013 – a significant decrease that shows obvious signs of improvement.

If the real estate market is still improving, why exactly are bank repossessions increasing?

Honestly, home prices are rising and therefore banks are looking to unload their inventory now that prices are higher than they have been over the last few years – allowing them to recoup some of their losses. In fact, many homeowners have been putting their homes on the market for the same reason – homes that they have held onto over the last few years due to the incredibly-low home prices.

Florida Reclaims the Top Spot

Over the last few months, Nevada has claimed the top spot in terms of having the highest foreclosure rate. Now, however, Florida has reclaimed the lead with one in every 302 homes throughout the state of Florida being in foreclosure.

This news comes at the same time that Florida’s governor signs a new foreclosure bill that is designed to expedite the foreclosure process in an effort to help the state make quicker progress toward recovery. Time will tell if this bill helps the state and if other judicial foreclosure states will use this bill as a template to design bills to expedite the foreclosure process in their respective states.

At the end of the day, although there was an increase in bank repossessed homes and foreclosure filings in May, the overall real estate market is still making progress toward recovery which is clearly seen when you look at annual real estate numbers.

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