Cities with the most foreclosures may surprise you, as one in five homes in the foreclosure process stands vacant after being abandoned by owners. It’s a struggle to wait for thousands of homes to complete the process.
Nearly one in three homes in foreclosure are abandoned in Indianapolis. In five separate metro areas in Florida, more than one in four homeowners have given up. Based on data provided by RealtyTrac for the 101 largest metro areas, these are the cities where residents are abandoning their homes.
Many of the cities with the most homes in foreclosure that are abandoned were among the hardest hit during the housing crisis. While there are exceptions, “these are areas where a big home price bubble popped,” RealtyTrac Vice President Daren Blomquist told 24/7 Wall St. Indeed, home prices fell by more than the national average during the housing crisis in six of the 10 cities. In Lakeland and Las Vegas, prices fell by more than 40% in that time, compared to a national decline of just 20.8%.
The amount of time it takes for the foreclosure process to complete in some of these cities may, as Blomquist explained, be a major factor in how many residents decide to give up on their properties. Several of these cities are in states with long average foreclosure times. In Florida, which has two cities on this list, the average foreclosure took 893 days to complete, the third longest time in the country.
While some of these cities have shorter-than-average foreclosure processing time, recent legislation may have encouraged homeowners to give up. Atlanta is located in Georgia, which has the seventh shortest average foreclosure time of 199 days. “But that’s up 26% from a year ago,” explained Blomquist. These changing rules may be leading homeowners to give up on their homes, he added.