While RealtyTrac found that the nationwide average for foreclosure discounts is 31.74 percent, there are some states that are much more generous.
Foreclosure discounts include homes in foreclosure or properties that are bank-owned. Even though foreclosures provide an opportunity to purchase properties at a lower price compared to non-foreclosures, RealtyTrac found that foreclosure prices are actually increasing. With the average foreclosure sales price at $170,040, prices are up 6 percent on a quarterly basis and up 7 percent yearly. The annual increase was the biggest since the fourth quarter of 2006.
That being said, here are the states with the biggest foreclosure discounts, along with their average foreclosure sales price, according to RealtyTrac findings.
1. Massachusetts (47.09%) ($193,993)
2. Kentucky (46.33%) ($85,863)
3. Connecticut (45.40%) ($173,022)
4. Rhode Island (43.97%) ($123,648)
5. Ohio (43.01%) ($75,797)
6. Louisiana (41.99%) ($107,239)
7. Delaware (41.93%) ($132,142)
8. Illinois (41.09%) ($130,454)
9. California (41.05%) ($248,676)
10. Georgia (40.07%) ($104,561)
RealtyTrac also looked at foreclosure trends in metro areas and found that in Modesto, California, 57 percent of sales were foreclosure-related, the highest percentage among the nation's 100 largest metros.
Six other metros in California were among the top 10 for their high percentages, including Stockton (54 percent), Riverside-San Bernardino-Ontario (47 percent), Bakersfield (46 percent), Sacramento (45 percent), Fresno (44 percent), and Oxnard-Thousand Oaks-Ventura (39 percent).
Other metros in top ten were Las Vegas (45 percent), Atlanta (45 percent), and Detroit (39 percent).