In April the three states with the highest foreclosure inventory as a percentage of all mortgaged homes in April were Florida, New Jersey and New York, each of which is a judicial state, according to CoreLogic, an Irvine, Calif.-based analysis firm.
“Judicial states, as a rule, have longer foreclosure timelines, thus affecting foreclosure statistics,” according to CoreLogic’s report.
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.”