Foreclosure in the U.S. has now dropped to their lowest levels as of last year, recent report says.
Said decrease has surely pacified those who have shuttered homes and those in their darkest mortgage crisis, even those with idling car loans, Realtor.com reports. It has comforted almost all after it suddenly dropped about 27 percent from 603,028 in 2014 to 476,000 last year, as per CoreLogic. Also, according to My Informs, the year 2015 has the lowest number of foreclosures.
This decline of foreclosures is being attributed to an increasing number of homeowners with permanent jobs. In fact, one of the top reasons that banks re-owns homes is because the owners would suddenly have their income cut, probably because of losing their jobs, a spokesman for Washington's NeighborWorks America, Douglas Robinson, has concluded.
Moreover, University of Toledo Professor Dan Hammel, professor of urban geography, considers such decline a recovery leading to a stronger economy.
"We're finally through the worst of it," said Hammel.
Hammel also considers the increase of home prices and the strict lending criteria of the bank as contributing factors of such drop in foreclosures, although these factors may make it difficult for other home buyers to get a mortgage.
However, behind the real estate recovery lies five states in the U.S. with number of foreclosures that still remain high. According to CoreLogic, Florida has completed 79,109 foreclosures in 2015, the most in the U.S. Jack McCabe, CEO of McCabe Research & Consulting, said that Florida is still spiraling around the housing crisis due to the purchase of multiple homes by investors back in the mid-2000s. Reportedly, there was a demand in the housing that time which caused the artificial increase of prices. Florida is followed by 48,865 foreclosures in Michigan and the 29,815 in Texas. Ohio has 24,456 while Georgia has 24,239 foreclosures as of last year, according Realtor.com. These states cover about half of the United States' total foreclosures.
On the brighter side, the country still has a high hope for a stronger economy as the rest of its states only have a few number of foreclosures.
As per reports in Realtor.com, Washington, D.C. has the least number of foreclosures at 81, followed by the 220 in North Dakota, 541 in Wyoming, 560 in Virginia, and 700 foreclosures in Alaska in 2015.
