Idaho Foreclosure Rates

Our local newspapers have regurgitated this misleading info about foreclosures, namely that they are skyrocketing. Only six months ago it was reported that Idaho was the eighth best state in the nation. In other words, one of the lowest rates. Now, less than one year later, we are ranked closer to the bottom. Same thing happened with misleading reporting when our unemployment went up two points this winter. But looking at the data since 1990, this is the absolute normal pattern during winter months. Plus, Schweitzer Ski Resort has not even hired its full staff yet.

Here is what ForeclosureResearch.com wrote in December 2008:

Idaho foreclosure rates: Nothing to be alarmed about

The latest slew of questionable foreclosure statistics and reporting has hit the press, this time out , Idaho. This particular headline was especially peculiar as Idaho rarely has ominous headlines about its respective foreclosure rates.

The Idaho Article comes from a local news station, LocalNews8, titled, “Idaho Foreclosure Rate Among Nation’s Highest.” The article written by Aman Chabra was troubling considering that if Idaho has one of the nation’s highest foreclosure rates, then the economy may truly be heading to shambles.

The article reads, “According to RealtyTrac.com, 1 out of every 479 houses in Idaho has been foreclosed on. That rate ranks Idaho 10th in the nation behind bigger states such as California, Florida and Arizona.”

To verify that RealtyTrac actually reported that Idaho ranked 10th in the nation, their November statistical report,RealtyTrac Report, was referenced and in fact, Idaho was ranked 10th in the nation. However, this ranking is based on foreclosure filings. According to the article, “1 out of every 479 houses in Idaho has been foreclosed on” when in fact, 1 out of 479 homes received a foreclosure filing. Only 61 homes were actually foreclosed on and only 612 received a notice of trustee sale. Recipients of the notice of trustee sale often times manage to avert foreclosure.

When paired with the US Census numbers, at most, 1 out of 767 homes were foreclosed on, not 1 in 479. As mentioned above, this does not even include those that redeemed just prior to the sale.

Not only is the reporter giving incorrect information, but there is another issue with the Idaho foreclosure figures. Referring back to a past expose on Foreclosure Research, RealtyTrac does not even focus on areas of less than 25,000 in population, as they have said so on numerous occasions. Considering this, 32 of 44 counties have populations of less than 25,000.

Taking into account all the new information, it is misleading to rank Idaho as 10th in the country as the ratio between notice of trustee sale to actual REO is dramatically low. Other factors that make this article misleading is the high volume of rural areas and low total household numbers, which make the rate per household unusually high.

Doing a bit more research, we discovered that as recently as June, RealtyTrac had reported Idaho foreclosure rates down 18%. In fact, five counties accounted for 85% of all foreclosure activity: Ada, Bannock, Canyon, Kootenai, and Twin Falls. Other news agencies reported that rates were up only 6% in December, indicating a slow down. In a state where, because of the type of employment many have, planned unemployment, and the accompanying financial difficulties are part and parcel to the winter months. We are having a hard time, and rates are up, much as in the rest of the country, but not by astonishing numbers.