What Are The 20 Best Foreclosure Markets?

For those who believe the foreclosure crisis is done and gone, consider that many markets continue to offer both large numbers of foreclosures and substantial discounts.

Since 2006 more than 10 million foreclosure filings have been sent out and some 5 million properties have actually been foreclosed. However, many of the properties which have been foreclosed remain unsold in lender inventories.

“Markets with increasing foreclosure activity in 2012 took the first step in finally purging delayed distress left over from the bursting housing bubble,” said Daren Blomquist, vice president at RealtyTrac. “Meanwhile, the underlying fundamentals in many of those markets are slowly improving, making it an opportune time to absorb additional foreclosure inventory this year — and that is particularly good news for buyers and investors hungry for more inventory to purchase in those markets.”

RealtyTrac says that 20 markets remain especially attractive for foreclosure buyers.

“Foreclosure activity in 2012 decreased from 2011 in 12 out of the nation’s 20 largest metro areas,” explained the company, “led by Phoenix (down 37 percent), San Francisco (down 30 percent), Detroit (down 26 percent), Los Angeles (down 24 percent), and San Diego (down 24 percent).

“But 2012 foreclosure activity increased in eight of the 20 largest metros, led by Tampa (80 percent increase), Miami (36 percent increase), Baltimore (34 percent increase), Chicago (30 percent increase), and New York (28 percent increase).”

Below are the RealtyTrac top-20 foreclosure markets at this time — and the foreclosure discounts by market which can often be found.

MSA Avg Foreclosure Discount (Pct)
Bridgeport-Stamford-Norwalk, CT 52.22
Cleveland-Elyria-Mentor, OH 46.97
Chicago-Naperville-Joliet, IL-IN-WI 46.03
Philadelphia-Camden-Wilmington, PA-NJ-DE-MD 43.17
New Haven-Milford, CT 41.87
New York-Northern New Jersey-Long Island, NY-NJ-PA 40.35
Allentown-Bethlehem-Easton, PA-NJ 39.7
Indianapolis-Carmel, IN 35.51
Albany-Schenectady-Troy, NY 35.08
Youngstown-Warren-Boardman, OH-PA 32.63
Jacksonville, FL 32.29
Miami-Fort Lauderdale-Pompano Beach, FL 30.58
Poughkeepsie-Newburgh-Middletown, NY 28.35
Palm Bay-Melbourne-Titusville, FL 28.05
Tampa-St. Petersburg-Clearwater, FL 26.64
Rochester, NY 25.78
Syracuse, NY 21.25
Orlando-Kissimmee, FL 19.24
El Paso, TX 17.8
Lakeland, FL 15.09

What’s remarkable about the foreclosure discounts is that they would be even larger were it not for the fact that more than 1.1 million mortgages have been modified while — at the same time — many borrowers have avoided foreclosures by instead marketing their home with a short sale.

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