Indiana Foreclosures Increase Along With Most of the Country

The housing market continues to struggle in Indiana and nationwide. Last month foreclosures rose in Indiana and in 26 other states. Previously claims of foreclosure abuse created a backlog of properties, now it seems many of those homes are beginning to move through the judicial process.

Indiana had a foreclosure rate of one out of every 685 homes, ranking 13th nationwide. Default notices in the state rose 37 percent last month compared to 2011, and the number of home auctions scheduled was also up over 90 percent from last year.

According to RealtyTrac, those states with the increase in foreclosures are those where the foreclosure process is supervised by the courts. Other states where the courts are not involved in the process actually saw a decline in foreclosure activity last month.

It seems the increase in foreclosures stems from more cases moving through the judicial system in light of banks finally sorting out documentation issues, and the recent billion dollar settlement that was reached between state officials and the biggest lenders.

A spokesperson from RealtyTrac explained, "We're not just seeing an increase in properties starting the foreclosure process, as we have in previous months, but we're starting to see dramatic increases in properties completing the foreclosure process in many of those judicial foreclosure states."

Unfortunately, as more foreclosed Indiana homes hit the market, prices of neighboring properties may continue to fall. Hopefully as the backlog clears, foreclosures in the state will finally begin to decline, and property values will start to increase.

Source: Indianapolis Business Journal, Foreclosures surge in most states, including Indiana, 15 Mar. 2012