Distressed properties have been in short supply since the pandemic began -- largely due to foreclosure moratoria, mortgage forbearance options, and other efforts designed to keep Americans afloat. Fortunately for flippers, these properties haven't completely disappeared off the map. While overall foreclosure filings were down 57% for 2020 since 2019, there are still some places you can snap up one of these bargain-priced properties if you know where to look.
Are you on the hunt for your next potential flip? Here are the top states to do it in.
According to ATTOM Data Solutions, 6 of the top 10 ZIP codes for foreclosure filings are in California. In Manteca (specifically the 95337 ZIP code), foreclosure filings more than tripled over 2019's numbers.
Other Cali cities with rising foreclosure numbers include Tracy (95376), Stockton (95205, 95210, and 95209), and Lodi (95240). In Tracy, filings were up 177% over the year.
In the Lone Star State, College Station (77840) has seen its fair share of foreclosure filings in the last year. Numbers are about 167% higher than what the area saw in 2019.
McAllen -- located right along the Rio Grande -- actually claims the highest foreclosure rate in the state. There, about 0.35% of properties went into foreclosure last year.
Over in Georgia, the state's 31401 ZIP code, located in Savannah, has seen filings rise 83% over the year. The state itself also claims one of the highest foreclosure rates in the country, with 0.19% of properties going into foreclosure in 2020.
Illinois had the third-highest rate of foreclosures last year, and two of its biggest cities -- Rockford and Peoria -- topped the list as well. Peoria came in second with a rate of 0.48% of all properties, while Rockford came in third at 0.44%.
As a state, New Jersey has the second-highest foreclosure rate in the entire country, with 0.31% of all properties going into foreclosure last year. The state also claims two of the country's foreclosure hotspots in Trenton and Atlantic City. These cities saw 0.44% and 0.40% of all properties go into foreclosure last year.
Hoping to snag a foreclosure?
Despite foreclosures rising in these areas, they're still hard to come by. Overall housing inventory is at record lows, and with low interest rates fueling heavy demand, you'll likely face stiff competition, even for distressed properties and those at auction.
To make sure you stand a chance, line up your financing early, do your research, and use remote and virtual bidding tools to ensure you don't miss your window. Paying in all cash and removing contingencies can also help your case.