A booming housing market has closed the door on many foreclosures in the Golden State, with less than 1% of mortgages in trouble in July.
A better economy and fast-rising home prices have allowed more financially strapped homeowners to remain rather than walk away from their properties, according to industry tracker Corelogic.
In fact, California, which often battled Arizona and Nevada for the foreclosure title a few years ago, has become one of the best-performing states.
California’s 0.9% foreclosure rate is among the lowest, rivaling Colorado, Nebraska and North Dakota. Wyoming has the lowest rate at 0.4%, followed by Alaska, according to Corelogic.
In comparison, Florida has the highest foreclosure rate at 8.1%, followed by New Jersey and New York at 5.9% and 4.7%, respectively. The national rate was 2.4% in July.
However, California has the second-most foreclosures in the nation during the past year, with about 65,000 homes returning to lenders. But the figure is largely because of the sheer number of homes – and mortgages – in the state.
The Inland Empire – Riverside and San Bernardino counties – accounted for about one of every five foreclosures in the state (13,314) during the past year. The Inland Empire had the fifth-most foreclosures in the country, but only half as many as front-runner Atlanta with 26,000.
Los Angeles ranked No. 8, with 10,725 foreclosures, while Sacramento 6,058 since July 2012, placing the capital region at No. 15.