Posts Tagged ‘Foreclosure Sales’
Foreclosure Sales Ramp Up Post Robo Signing
Despite huge delays in foreclosure processing last year, following the so-called "robo-signing" paperwork scandal, sales of foreclosed properties still managed to account for nearly one in four home sales.
Foreclosure Sales Ramp Up Post Robo Signing
Despite huge delays in foreclosure processing last year, following the so-called "robo-signing" paperwork scandal, sales of foreclosed properties still managed to account for nearly one in four home sales.
Bulk Foreclosure Sales Could Cause Bigger Bank Write-Downs
As government, federal regulators and big-money private investors try to figure out a plan for bulk sales of foreclosed properties, big banks are already making deals, but they are few and far between.
Foreclosure Sales Centered in Few States, So Why Should We Care?
Earlier this week, when we got the report of a bump up in sales of newly constructed homes, I cautioned that the home builders are still facing huge competition from distressed properties. Today we have some new numbers showing just how big and how widespread that competition is.
What Could Force More Short Sales
Despite a government program designed to streamline and incentivize the process, short sales have not even come close to keeping up with foreclosure sales. That may be about to change.
Foreclosure Moratoria Hit Home Sales
The Pending Homes Sales Index fell 1.8 percent in September...the first indicator of the foreclosure scandal's impact on potential buyers.
Pros & Cons of the Foreclosure Freeze
Many states in America were struck when orders of foreclosure freeze were released. On Friday, Bank of America announced to the world about their plans of halting all foreclosure sales nationwide. This, according to many news websites is the aftermath of revelations by so-called "robo-signers.'' Many popular lending companies like JPMorgan Chase, PNC and GMAC have also suspended their foreclosure operations as well as Fannie Mae foreclosure sales. Together, these lenders own more than 3,000 properties for sale in Florida alone. So what will happen with this foreclosure freeze? Halting the foreclosure sales means the bank will continue to bear the costs of maintaining properties it has reclaimed, and won't be able to cash in on bank-owned sales, which move relatively quickly and often above asking prices. The already hurting housing market will most likely see a record setting low fourth quarter for sales since foreclosure sales make up more than 25% of the homes sold in Florida. When you look at it closely, the freeze could actually benefit both homeowners and the housing market. Homeowners facing foreclosure will have extra time to stay in their home while the effects of robo-signing are figured out and fixed. Prices might stabilize because so many homes are penned up. People trying to buy these foreclosed homes will have to wait out the freeze or find another home if they are in a rush to move in. Click here for a free Central Florida Real Estate Market report.
Sales of foreclosure properties on the rise
Foreclosures accelerated in the second quarter, driving down home prices and accounting for nearly half of all sales in several states. Nationally, homes sold at foreclosure accounted for 24 percent of all residential sales in the second quarter of 2010, RealtyTrac reports. The average price of properties sold while in some stage of foreclosure was more than 26 percent below the average for properties not in the foreclosure process. “It’s obvious foreclosures remain a major drag across the U.S.,” says Robert Dye, senior economist at PNC Financial Services Group. “Pioneering buyers with low mortgage rates will continue to take advantage of these properties. It’s going to take quite awhile to work through this inventory. It will take a few years, not months.” A total of 248,534 U.S. properties in some stage of foreclosure – default, scheduled for auction or bank-owned – were sold to third parties in the second quarter. That’s up almost 5 percent from the first quarter, but down 20 percent from second-quarter 2009. Some states were especially hard hit. Foreclosure sales accounted for nearly 56 percent of all sales in Nevada in the second quarter, the highest percentage of any state. Ranked second was Arizona, where foreclosure sales accounted for 47 percent of all sales. In California, 43 percent of sales were foreclosure properties. Other states where foreclosures were large shares of all sales were Rhode Island, 37 percent; Massachusetts, 35 percent; Florida, 34 percent; and Michigan, 33 percent. The uptick in foreclosures comes despite a federal effort to help homeowners struggling to retain their homes get modified mortgages with more affordable payments, as well as efforts by lenders to reduce payments for some borrowers. “It’s clear this will be with us for some time,” says Lawrence Yun, chief economist with the National Association of Realtors. Foreclosures used to be rising because so many borrowers had taken on mortgages they couldn’t afford, he says. “The further we go, more foreclosures will be related to the job market rather than people who overstretched,” Yun says. “There will be more traditional reasons for the foreclosures.” Foreclosure sales could pick up now that a federal tax credit for home buyers has expired, economists say. The credit gave borrowers the flexibility to bid on houses at higher prices. Without the credit, demand for lower-priced foreclosed homes could pick up. And that could pull down overall prices further. “Prices will fall and will put more people into negative equity, which causes more people to (go into) foreclosure,” says Mark Zandi at Moody’s Analytics.com. Copyright 2009 USA TODAY
Wave of foreclosure sales could hurt prices
More foreclosures could move onto the market as borrowers fall out of the government’s loan-modification program. That, coupled with weak demand, could lead to lower home prices across the board, suggests an article in the Wall Street Journal. Over the past two years, the pattern has become clear: the more homes that are being sold by lenders, the faster prices will fall. Ivy Zelman, CEO of research firm Zelman & Associates, says that distressed sales could account for 50 percent of properties sold by the end of the year – unless conventional sales recover. Neither she nor Glenn Kelman, CEO of Redfin Corp., believe that there will be massive declines in prices because homes are already undervalued in many areas, but Kelman suggests that the decline could be 5 percent to 10 percent. Should the government intervene again? Susan Wachter, professor of real estate at the University of Pennsylvania’s Wharton School, says that could be necessary if the bank sales trigger a downward spiral, “where price declines are feeding further price declines.” Source: The Wall Street Journal, Nick Timiraos
Which Distressed Home For Sale is For You?
In the world of foreclosure investing, you have to realize as early as possible that success lies with your property choice. Remember that there are actually different kinds of distressed homes for sale and you should be aware of the advantages and disadvantages of each type. Basically, there are: Pre Foreclosures - these distressed properties are the hardest to find but the easiest to buy. Advantages of choosing these homes include faster transaction since you will be dealing with the seller directly; home is in a much better shape since the owner is still living there, easier to negotiate since the owner is under time pressure to avoid foreclosure and cheaper since there are no foreclosure cost that will weigh you down. The only downside is that you might get too excited and neglect to check the property's condition as well as the title. You can expect the owner not to disclose everything so it would be up to you to discover hidden problems with the property by hiring a professional home inspector. Short Sale - owners who are exploring a short sale is also a pleasure to talk to since they are also desperate to stop foreclosure and save their credit. In a short sale, you can make an offer that is close to what the property is currently worth in the market. The key, obviously, is to find homes whose values have declined considerably. Unfortunately, your offer should be accepted by the lender or else, the short sale cannot proceed. Foreclosures at Auctions - looking for distressed homes for sale will be easiest if you attend foreclosure sales. All you need to do is place a bid and you can go home with one of these foreclosed properties. Of course, you have to consider that there are certain requirements that you need to fulfill if you want to participate. Some auctions require you to pay cash so you should be ready to do so. REOs - distressed houses that survived foreclosure auctions are reverted to their lenders. As their inventory grows, banks offer more discounts and incentives. For them, selling these properties at half their market values is better than keeping them. So as a last resort, you can find distressed homes for sale this way. You can also be sure that all secondary liens will be cleared from the property. Actually, it does not matter which repo property you choose since any one of these homes can offer savings and instant equity. But with the millions of distressed homes for sale in the market today, finding one that will be able to meet all your preferences as well as budget will be a daunting task. Experts recommend that you use foreclosure listings. These listings are actually search tools that will make everything convenient for you. You can search home by location or list price. Also, some providers even offer tips and helpful information as part of their service. You can subscribe to an online listing and there will be no need for you to leave your home. All you need to do is to point and click. Joseph B. Smith has been educating buyers on the finer points of Distressed Homes for Sale at DistressedPropertiesSale.com for over five years. Contact Joseph B. Smith through DistressedPropertiesSale.com if you need help finding information about Distressed Homes for Sale. Article Source: http://EzineArticles.com/?expert=Joseph_B._Smith
