The States With the Most Homes in Foreclosure

Print Email

11. Indiana
> 2011 foreclosure rate: 3.5%
> December, 2011 unemployment: 9% (13th highest)
> Home price change (2006Q3-2011Q3): -5.2% (37th largest decline)
> Processing period: 261 days

Over the past five years, median home prices in Indiana fell just 5.2%, far less than 14.7% the average decline for all 50 states. However, the 9% unemployment rate in the state is the 13th highest in the country. Of Indiana residents with mortgages, 6.6% were delinquent on payments for 90 days or more at some point during the year, and 3.5% of mortgaged homes were in foreclosure last year. The processing period for a foreclosure in the state is 261 days, one of the longest periods in the country.

10. Ohio
> 2011 foreclosure rate: 3.5%
> December, 2011 unemployment: 8.1% (21st highest)
> Home price change (2006Q3-2011Q3): -14.1% (21st largest decline)
> Processing period: 217 days

Ohio’s unemployment rate in December, 2010 was 9.5%, the 17th-highest in the country at the time. By the end of 2011, the employment situation improved and the unemployment rate fell to 8.1%. Still, foreclosure rates were one of the highest in the country. Of the state’s mortgaged homes, 3.5% were in foreclosure last year, and 6.9% of mortgages were delinquent on mortgage payments for 90 days or more. Over the next year, Fiserv-Case Shiller projects home prices are going to further decline in Ohio by 3.8%, the eighth-biggest decrease in the country. Foreclosures in the state take 217 days on average to process.

9. South Carolina
> 2011 foreclosure rate: 3.7%
> December, 2011 unemployment: 9.5% (9th highest)
> Home price change (2006Q3-2011Q3): -10.2% (29th largest decline)
> Processing period: 150 days

Homes in South Carolina lost 12.5% of their value over the past three years, with home prices falling 4.6% in 2011 alone. At the end of 2010, 10.9% of the state’s labor force was jobless. While the unemployment rate fell to 9.5% by December 2011, it is still one of the highest rates in the U.S. Over the past 12 months, 6.7% of mortgages in the state were delinquent for 90 days or more on payments, and 3.7% of mortgaged homes were in foreclosure in 2011.

Also read: The states that don’t believe the recession has ended

8. Hawaii
> 2011 foreclosure rate: 3.8%
> December, 2011 unemployment: 6.6% (13th lowest)
> Home price change (2006Q3-2011Q3): -20.2% (16th largest decline)
> Processing period: 220 days

Between the third quarter of 2006 and the third quarter of 2011, home prices in Hawaii fell by 20.2%, the 16th-biggest decline in the country. Unemployment remains relatively low in the state. It has increased over the past 12 months, however, even as the national rate decreased. Despite the relatively low unemployment, 6.6% of mortgages were 90 days or more delinquent on payments last year. Over the same period, 3.8% of homes in the state were in the foreclosure process. In Hawaii, foreclosures take 220 days to process.

7. Connecticut
> 2011 foreclosure rate: 4.1%
> December, 2011 unemployment: 8.2% (19th highest)
> Home price change (2006Q3-2011Q3): -16.6% (19th largest decline)
> Processing period: 62 days

Home prices in Connecticut fell 16.6% between the third quarter of 2006 and the third quarter of 2011. According to Fiserv-Case Shiller, they will fall an additional 2.5% by the third quarter of this year. According to CoreLogic, 7.2% of mortgage owners did not make payments for 90 days or more last year. And 4.1% of all mortgaged properties in the state were in foreclosure last year. Connecticut is one of the few states in which courts decide whether those in foreclosure can redeem their status by paying what they owe. This can lead to foreclosures taking much longer to go through.

Also read: The ten states that can’t pay their bills

6. Maine
> 2011 foreclosure rate: 4.2%
> December, 2011 unemployment: 7% (19th lowest)
> Home price change (2006Q3-2011Q3): -6.0% (15th smallest decline)
> Processing period: 240 days

Maine’s economy was not one of the worst affected by housing collapse. Home prices fell only 6% between 2006 and 2011, the 15th smallest decline. Also, unemployment in the state is exceptionally low with just 7% of the workforce without a job. Maine, however, had the sixth-highest foreclosure rate in the country last year, with 4.2% of homes with mortgages in the foreclosure process. One explanation could be the high delinquency rate in the state, as 6.9% of mortgage owners didn’t make a payment for 90 days or more in 2011. Another reason could be Maine’s lengthy foreclosure approval period. It takes 240 days for a mortgage to process, the fifth-longest period in the country. This means that a good percentage of homes that began the foreclosure process in 2010 were still in foreclosure last year.