The foreclosure rate is declining across the United States, but risk remains for claims departments. According to the latest data from CoreLogic, there were 49,000 completed foreclosures in July 2013 — down 25 percent year over year and down 8.6 percent from June 2013. Since the financial crisis of September 2008, 4.5 million completed foreclosures have occurred.
Over the past 12 months, the states with the greatest number of foreclosures were:
- Florida: 110,000
- CA: 65,000
- MI: 61,000
- TX: 45,000
- GA: 41,000
While the direction of the trend is positive, claims adjusters should not become complacent, as property claims on homes in foreclosure can be costly. Further, 4.5 percent of mortgages are in serious delinquency, indicating continued risk of suspicious claims.
To manage such risk appropriately, claims departments can use ISO ClaimAlert™: Foreclosure to identify property claims on homes in one of the five stages of foreclosure. The indicator can help an adjuster decide whether additional investigation is necessary.