NW Credit Unions’ Foreclosed Real Estate Balance Drops 32 Percent in Q2

Northwest credit unions registered strong performances in the second quarter of 2013 in most key areas. An analysis of Financial Performance Reports brings more positive news: a 32-percent decline year-to-year on the foreclosed real estate balance sheet.

The reasons: an improved housing market and slow but continued economic recovery, according to Dan Hein, vice president of finance for the Northwest Credit Union Association.

“Earlier this year, it became more of a seller’s market and that helped financial institutions sell off foreclosed properties,” Hein says. He expects the decline in foreclosure balance to slow a bit as interest rates rise.

The trend lines Hein analyzed show both banks and credit unions saw nearly identical declines in real estate foreclosure on their books during the second quarter. Compared to where financial institutions were during the peak of the recession, the news might make some analysts giddy.

“The peak total foreclosed real estate balance for Northwest credit unions was $119 million in Q3 of 2010. As of June 2013, the balance is $58.6 million,” Hein says.” There is still a long way to go.  It was a long way up the hill, which means it will take awhile to come back down, but clearly the trend is headed in the right direction.”

A national foreclosure trend report reflecting a 34-percent year-over-year decrease is available through RealtyTrac.

 

Questions? Contact Lynn Heider: 503.350.2225, lheider@nwcua.org.

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