The States With the Most Homes in Foreclosure

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10. Colorado
> 2012 foreclosure rate: 1.64%
> November, 2012 unemployment: 7.3% (20th highest)
> Home price change (2007Q2-2012Q2): -7.3% (34th largest decline)
> Processing period: 145 days

Between the second quarter of 2007 and the second quarter of 2012, home prices in Colorado declined by just 7.3%, well below the nationwide decline of 27.6% over that time. Despite this limited decline in home prices, one in every 61 properties in Colorado was in foreclosure in 2012 versus one in every 72 homes nationally. On a positive note, the number of properties with a foreclosure filing in the state last year was down by 6% from the year before, while nationwide foreclosures declined by 2.7%.

Also Read: The Best and Worst Run Cities in America

9. South Carolina
> 2012 foreclosure rate: 1.66%
> November, 2012 unemployment: 8.3% (12th highest)
> Home price change (2007Q2-2012Q2): -10.8% (27th largest decline)
> Processing period: 150 days

In South Carolina, one in every 60 homes was in foreclosure in 2012. The state was less-affected by the housing collapse than many others. Home prices declined by just 10.8% over the five years ending in the second quarter of 2012, a rate lower than in more than half of all states. Still, many residents could not find work to pay off their mortgage. South Carolina’s 8.3% unemployment rate in November 2012 was among the higher rates in the nation despite a 1.5 percentage point decline from the year before — among the largest declines in the nation over that period. Despite declining unemployment, foreclosure activity increased by 18.9% in the state between 2011 and 2012 versus a 2.7% decrease for the U.S. as a whole.

8. Michigan
> 2012 foreclosure rate: 1.69%
> November, 2012 unemployment: 8.9% (6th highest)
> Home price change (2007Q2-2012Q2): -31.9% (6th largest decline)
> Processing period: 60 days

In 2012, foreclosure activity declined by 23.5% in Michigan — among the larger declines in the nation. Despite foreclosure activity declining and despite having a foreclosure processing  period of only 60 days, Michigan’s foreclosure rate remained among the nation’s highest last year. Many homeowners in the state have seen the value of their homes fall considerably in recent years. Over the five years ending in the second quarter of 2012, home prices fell by 31.9% — more than all but five other states. Additionally, from the second quarter of 2011 through the second quarter of 2012, home prices rose by 1.2% nationwide, but prices in Michigan remained effectively flat.

7. Ohio
> 2012 foreclosure rate: 1.75%
> November, 2012 unemployment: 6.8% (25th lowest)
> Home price change (2007Q2-2012Q2): -11.6% (23rd largest decline)
> Processing period: 217 days

Although the nation’s housing market continued its recovery in 2012, last year was difficult for many Ohio homeowners. While home prices rose slightly nationwide over the 12 months ending in the second quarter of 2012, Ohio home prices fell by 0.5%. Worse yet, Fiserv projects home prices in Ohio to keep falling through mid-2013, and that the state’s real estate market will grow at a slower rate than nearly all other states from mid-2013 through mid-2014. Last year, foreclosure activity in the state increased by 12.8% from the year before. And further driving up the foreclosure rate, the foreclosure processing period takes 217 days in Ohio — longer than most states.

6. California
> 2012 foreclosure rate: 2.33%
> November, 2012 unemployment: 9.8% (3rd highest)
> Home price change (2007Q2-2012Q2): -41.0% (4th largest decline)
> Processing period: 117 days

From the second quarter of 2007 through the second quarter of 2012, home prices in California fell by 41%, a larger decline than all but three other states. But in the aftermath of the U.S. recession and housing crisis, home prices in the state have rebounded. Over the three years ending in the second quarter of 2012, home prices increased by 7.3%, more than all states except Virginia and North Dakota. Still, the widespread and long-lasting effects of the recession — the state’s 9.8% unemployment rate remains among the worst in the U.S. — prevent many homeowners from affording their mortgage. Although foreclosure activity in California declined by 25.4% in 2012, one of the largest declines in the U.S., the state still had one of the nation’s highest foreclosure rates last year, at one in every 43 homes in foreclosure.