Although banks might be foreclosing at a slower pace, deep discounts remain available for buyers willing to scoop up those homes. The average foreclosure discount in the U.S. was 27%, according to new data released by foreclosure tracker RealtyTrac. That nearly matches the fourth quarter's discount of 28%, despite banks foreclosing on fewer homes this year. The discount varied widely by state, however.
Here's a chart showing the average discount that the sale of a property in some stage of foreclosure provided over sales of non-defaulted properties in the 38 states RealtyTrac tracks (click to enlarge):
You might find these results a little bit surprising: there isn't much correlation between a state's foreclosure concentration ranking and how deep the discount was on its foreclosure sales. For example, the third and fourth biggest discounts were in Kentucky and Maryland, which was around 39%. Yet, these states were ranked 41st and 35th, respectively, by foreclosure density.
Outliers can be found on the other side of the chart as well. In Utah, people actually paid 2% more for foreclosures compared to non-foreclosures. Yet the state was ranked as having the 4th highest rate of foreclosures in the nation. Even Nevada, the state with the most severe foreclosure problem, had a foreclosure discount well below the national average, ranked as the 7th lowest discount shown on the chart.