The latest home data released by RealtyTrac show that homes entering foreclosure status dropped 44% in August when compared to last year, and 8% when compared to July 2013. The continued recovery in the national housing market and its associated rise in home prices mean that less people are underwater with their mortgage and fewer homes are entering foreclosure.
While the Utah housing market is recovery nicely, Utah is actually relatively high in the foreclosure ranking, coming in at number 8 in the country for August. One in every 697 homes entered the foreclosure process in August, compared to 1 in 824 in July (when we were 10th in the nation). So why is Utah heading in the wrong direction? Well one reason could be that the recovering market means that banks are feeling an increased willingness to foreclose on properties. After all, just like non distressed home sales, it’s far easier to sell a home in a market that is heading upwards than it is in a market that is in a downtrend. It also means that banks can recoup more of their loss.