Mortgage News in the Carolinas
Foreclosures
Foreclosure Activity Slows For The First Time In Several Years
0738 days
by Geoff Brown
in Foreclosures
The national foreclosure rate is finally falling.
According to foreclosure-tracking firm RealtyTrac.com, the number of foreclosure notices dropped 2 percent between April 2009 and April 2010.
2 percent may not seem like much, but it’s the first time in the history of the RealtyTrac report that the annual foreclosure rate has dropped.
To be sure, foreclosure rates remain elevated — more than 300,000 were reported last month, but default notices appear to be approaching a plateau.
The RealtyTrac report shows some other interesting statistics, too:
- 6 states accounted for more than half of April’s bank repossessions nationwide
- For the 40th month in a row, Nevada topped the nation’s foreclosure rate
- Foreclosure rates dropped in both California and Arizona, 2 foreclosure hot-spots through 2009
The good news for housing doesn’t stop there. 9 of the top 10 leading metropolitan areas for foreclosure-related activity showed a drop in annual activity. Only Reno, Nevada showed an increase.
Buying distressed homes is big business, according to the National Association of Realtors®, accounting for 35 percent of all home resales with a typical discount ranging near 15 percent on value.
But with the discount comes some caution. You need to know how buying a foreclosed can be different from buying a non-foreclosed home.
For example, distressed properties are often sold as-is and may have defects that render them “un-lendable”. Secondly, “quick closings” aren’t usually possible with bank-owned homes — you’re often at the bank’s schedule and mercy.
And, lastly, not all foreclosed homes are searchable online. You’ll usually find more stock if you work with a real estate agent versus searching online.
The RealtyTrac foreclosure report is thorough and can help you gauge what’s happening on a state-by-state level, and in the nation’s largest metropolitan areas. Once you’ve done your research, talk to your real estate agent about what to do next.
There’s still good deals in the foreclosure market — you just have to know where to find them.
In Pictures: The Severity Of The Foreclosure Crisis Depends On Where You Live
0829 days
by Geoff Brown
in Foreclosures
Foreclosures stories dominate the national housing news. It seems at least one foreclosure-related story makes its way to the front page or the nightly news every week.
But for as much as the foreclosure filing statistics can be astounding — over 300,000 homes were served last month alone — the prevalence of foreclosures depends on where you live.
As reported by RealtyTrac, just 4 states accounted for more than half of the country’s foreclosure-related activity last month.
- California : 22.7 percent of all activity
- Florida : 14.9 percent of all activity
- Arizona : 6.7 percent of all activity
- Illinois : 5.7 percent of all activity
The other 46 states (and Washington D.C.) claimed the remaining 49.9%.
However, just because foreclosures are concentrated geographically, that doesn’t make them less important to homebuyers in Charlotte and around the country. There’s been more than 1.4 million foreclosure filings in the last 12 months and that’s a figure that can’t be ignored.
Distressed properties now play a role in one-third of all home resales.
Therefore, if you’re in the market for a foreclosed home, here’s a few things to keep in mind.
- Properties are usually sold “as-is” and may not be up to living standards. Be sure to physically inspect the home before buying it.
- Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays and long closings.
- Foreclosures aren’t always listed for sale publicly. Ask your real estate agent how to access the complete foreclosure inventory.
In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010. That doesn’t leave much time to find a bank-owned home and make it to closing. If you’re serious about buying foreclosures, it’s probably best to start your search soon.
