Mortgage News in the Carolinas
Posts tagged Foreclosures
Foreclosure Activity Plunges (But With An Asterisk)
0516 days
by Geoff Brown
in Foreclosures
According to foreclosure-tracking firm RealtyTrac, the foreclosure filings fell 21 percent in November to 262,339 units nationwide. A foreclosure filing is defined as default notice, scheduled auction, or bank repossession.
November marked the first time since February 2009 that the number of monthly filings failed to surpass 300,000 units.
There were other notable November statistics, too, included:
- November’s 21 percent month-to-month decrease was the largest in RealtyTrac’s recorded history
- November’s 14 percent year-to-year decrease was the largest in RealtyTrac’s recorded history
- Nevada led the nation in foreclosure activity for the 47th straight month
However, we can’t read into November’s RealtyTrac report too much; ultimately, history may treat it with an asterisk. Controversy surrounding the so-called robo-signers forced some of the biggest banks to institute a temporary halt to foreclosures in November. Foreclosure activity did fall last month, but the moratorium makes the figures look better for housing than if there had been no interference.
The halt in foreclosures is also why Utah leaped into the #2 state for foreclosures nationwide. Perennial foreclosure-leading states like California, Michigan and Arizona posted double-digit improvements in November whereas Utah did not.
Banks have since resumed foreclosure activity so December’s results may be a better gauge for how the market is truly performing.
Foreclosures tend to be sold at discount and low home prices can entice home buyers to make an offer. If you’re such a buyer in Charlotte and want to look at foreclosed homes, talk to a real estate agent first.
Although there’s a host of online search engines that specialize in foreclosures, a licensed agent may have access to broader inventory, plus the ability to negotiate it more effectively.
October 2010 : 5 States Account For Half Of The Nation’s Foreclosure Activity
0555 days
by Geoff Brown
in Foreclosures
According to October data from foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 20th straight month last month as 1 in every 389 U.S. homes received a foreclosure filing.
The generic term “foreclosure filing” is defined to include default notices, scheduled auctions, and bank repossessions. Versus the month prior, filings fell 4 percent, and as compared to October 2009, filings were essentially the same.
As usual, foreclosure density varied by region last month, with just 5 states accounting for close to half of the nation’s repossessed homes.
- California : 14.8 percent of all bank repossessions
- Florida : 14.4 percent of all bank repossessions
- Michigan : 7.3 percent of all bank repossessions
- Texas : 6.6 percent of all bank repossessions
- Arizona : 6.0 percent of all bank repossessions
The other 45 states accounted for the remaining half.
It reminds us that, like everything else in real estate, foreclosures are local.
For today’s Charlotte home buyers, though, foreclosures represent an interesting opportunity.
Homes bought in various stages of foreclosure are often less expensive than other, non-foreclosure homes and it’s one of the reasons why distressed home sales now represent 35 percent of all home resales. But don’t confuse less expensive for less costly. Foreclosed homes may also be in various stages of disrepair. Getting them into living condition can be expensive.
Your best real estate “deal”, therefore, may be that non-distressed home that’s in sound, move-in ready condition.
If you’re buying foreclosures — or even just thinking about it — make sure you talk with a real estate agent first. Buying distressed property is different from the “typical” home purchase. You’ll want somebody experienced in your corner.
How Big Is The Foreclosure Market? It Depends On Where You Live, Of Course.
0647 days
by Geoff Brown
in Foreclosures
Foreclosure filings rose 4 percent nationwide last month versus June, according to foreclosure-tracking firm RealtyTrac.com. For the 17th straight month, total filings topped 300,000.
A foreclosure filing is defined as default notice, scheduled auction, or bank repossession.
As with most months, just a handful of states dominated foreclosure activity nationwide.
- California : 14.9 percent of all activity
- Florida : 11.6 percent of all activity
- Arizona : 6.4 percent of all activity
- Michigan : 6.2 percent of all activity
- Georgia : 6.1 percent of all activity
- Texas : 4.9 percent of all activity
Together, these 6 states represent just 30 percent of the overall U.S. population.
The other 44 states (and Washington D.C.) were home to the remaining 49.0%.
Despite this imbalance, though, in all markets, foreclosures and REO are making a profound impact on pricing and product. “Distressed” homes now represent 32 percent of the overall resale market nationwide, according to the National Association of Realtors®.
Buying a foreclosed home can make for a terrific “deal”, but buying in the REO market is decidedly different from buying a non-foreclosed property.
As 3 examples:
- Buying bank-owned homes can take 120 days to close.
- Foreclosures aren’t always listed for sale publicly. Some inventory is privately-held.
- Bank-owned homes are often sold “as is”. There may be defects that render the homes mortgage-ineligible.
If you have an interest in buying REO, consider talking with a real estate agent first. Even the negotiation process is different as compared to a non-distressed sale. It helps to have an experienced professional representing your interests.
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.
