Idaho’s foreclosure inventory lower than most of Nation
Filings of foreclosures the first half of 2012 fell by nearly 11% nationally and over 54% in Idaho. Alternate states which have seen a reduction in foreclosures are: Nevada (62%), Arizona (26%) and Florida (22%). This is a great indicator or future stability in our local real estate market.
Mortgage lenders are modifying more loans w/in Idaho and instead of foreclosing on property, many lenders are not starting the foreclosure process due to the Idaho legislation which came into effect on Sept 1 which requires lenders to better inform home owners about their options—including the right to request a modification of their loan along with the right to obtain information on how the foreclosure process is progressing.
Short sales have become more prevalent as the housing market improves. As you most likely know, a short sale is when the lender agrees to accept a payoff of less than what is owed on the property in order for it to sell. A short sale is appealing to a lien holder since a short sale will sell more quickly than allowing the home to be foreclosed upon (gets the home off of the bank books more quickly), and a short sale is less expensive than allowing the home to be foreclosed upon, as well.
Distressed property sales (short sales and bank owned homes) have been decreasing. Distressed property was at 26% of re-sale inventory in the first ½ of 2012 in Ada County and 56% in Canyon County. Both counties have seen nearly a 20% decrease in distressed property inventory in comparison to the same time last year.
Current foreclosure rates were at 1.1% last month and 1.6% in June for loans with IHFA.