Judicial foreclosure states contain more distressed homes
New data from CoreLogic reaffirms a long-held belief that real estate markets in judicial foreclosure states are healing at a much slower pace than those in non-judicial foreclosure states.
MarketWatch noted the three states with the highest foreclosure inventory rates in April were classified as judicial foreclosure jurisdictions – namely Florida, New Jersey and New York.
The publication spelled out the ongoing trend after reviewing the latest CoreLogic data:
In judicial states, lenders must give nonpayment evidence to the courts to move borrowers into foreclosure, rather than issuing default notices directly to borrowers without involving the courts.
In April, the foreclosure-inventory rate was 9.5% in Florida, 7.4% in New Jersey and 5.1% in New York, compared with a U.S. rate of 2.8%. Among non-judicial states, the highest foreclosure-inventory rate was in Nevada, which was hit particularly hard when the housing bubble burst.