I ran into a friend and former client in the gym yesterday and he mentioned that he had just read that it would take New York more than 50 years to go through all of their foreclosures. That was cool because I was in the middle of researching that exact information before I went to the gym so I was pretty psyched about getting back to researching that Arizona foreclosure inventory situation.
One recent study by LPS created a measure I’ll call “Months Inventory of Foreclosures.” They compared 1) the number of homes being foreclosed on and added the number of homes 90+ days delinquent (and therefore extremely likely to be eventually be foreclosed on) and divided that number by 2) the average foreclosures completed per month over the last 6 months. The LPS report didn’t call it this but I will, it’s the “Months Inventory of Foreclosures.”
New York has a HUGE overhang of homes in the foreclosure process. At their current rate, it will take New York over 50 years to get through their backlog of foreclosures.
New York is the worst state. Arizona is the best state.
Arizona has only a 16-month foreclosure inventory, the smallest of any state. In a way, that shows the Arizona has the smallest shadow inventory of any state.