Longer Foreclosure Timelines Equal Deeper Discounts

In the first half of 2015, the number of homes entering foreclosure was down 4% from the same time one year ago and down 18% from before the housing bubble burst in 2006. However, the average length of time required for these homes to complete the foreclosure process has greatly increased in the same time. Therefore, while the number of homes entering foreclosure is down, those that do complete the process have often sat vacant for a far greater length of time. The longer a distressed home remains unoccupied, the more likely it is to be in poor condition. This means that banks are generally willing to sell them at an even greater discount than usual!

RealtyTrac began tracking the average length of foreclosure in 2007, and they note that the current timespan of 629 days is the longest they have ever observed. Furthermore, distressed and foreclosed homes are now selling at an average price of 43% below that of similar non-distressed properties, the largest gap since they began tracking the stat in 2006. 

The states with the longest foreclosure timelines in May were:

1. New Jersey: 1,206 days
2. Hawaii: 1,060 days
3. Montana: 1,028 days
4. New York: 1,000 days
5. Florida: 989 days

Source: Why Fewer Foreclosures Means Better Foreclosure Deals | RealtyTrac Report