Foreclosures
Top Real Estate Headlines for Week Ending: August 27th
August 27, 2010 by Cathy Mattan · Leave a Comment
As we all look forward to the weekend, let’s pause for a moment to review what the top real estate and mortgage headlines were this week according to the National Association of Realtors.
- July Existing-Home Sales Fall, But Prices Rise
Home prices rose in July, though existing-home sales continued their slide following the expiration of the home buyer tax credit. - Is the Housing Slowdown a Sign of a Double-Dip?
As unemployment and mounting foreclosures continue to bind the housing market, analysts fear a slide back into recession. - Foreclosures Down, But Late Payments Up
The inventory of houses in the process of foreclosure are down for the first time since 2006, but the number of loans that are one payment late went back up. - Commercial Conditions Favor Business Growth
Rent discounts and other favorable conditions in commercial real estate markets make it a good time for expansion moves by business, an NAR report suggests. - 4 Business Tips for Social Networking Success
Are you using social networks to garner more business leads? Read tips on how to expand your reach. - Mortgage Rates Continue to Fall
Average interest on long-term mortgages hit a record low for the eighth time in nine weeks, and could go even lower. - 7 Must-Have Apps for Your Smartphone
Get ideas on some of the latest apps that can be used in your real estate business, from faxing on-the-go to creating property “reminder” tours. - Protest Rising Over Resale Charges
Some builders are now including in contracts a clause that requires buyers to pay them a 1 percent transfer fee every time the house is sold over the next 99 years. - New York Housing Bucking Trends
Inventory has dropped in half from a year ago and well-priced apartments are selling in a week. - Fannie Mae to Prohibit ‘Appraisal Cutting’
The secondary mortgage market company doesn’t want lenders to cut valuations anymore on appraisals in dispute. - Military Growth Drives Fastest Rise in Income
Jacksonville, N.C. tops the list of USA Today’s metro areas with the largest per-capita income gains from 2000 to 2009. See what other cities made the list.
These were the top real estate and mortgage headlines for the week ending August 27, 2010.
Want to know how these national headlines could impact you right here in Northwest Indiana? Subscribe to this blog, Today’s Real Estate Reality, and let our resident local market real estate experts guide you to an informed and successful real estate transaction.
Foreclosures
Steady Pace Of Foreclosures Slow Down Again In June 2010
July 15, 2010 by James K Barath, CMPS · Leave a Comment
313,841 foreclosure filings were made in June, according to foreclosure-tracking firm RealtyTrac. The figure represents a 3 percent drop from May and 7 percent drop from June of last year. However, foreclosure filings remain relatively high nationwide.
June marks the 16th straight month the filings topped 300,000. 1 in every 411 U.S. homes received some form of notice last month with foreclosure density varying wildly from state-to-state.
Like everything else in real estate, it seems, foreclosures are a local phenomenon.
The states with the highest foreclosures per capita were:
- Nevada : 1 foreclosure filing per 88 homes
- Florida : 1 foreclosure filing per 171 homes
- Arizona : 1 foreclosure filing per 189 homes
The states with the lowest foreclosures per capita were:
- Vermont : 1 foreclosure filing per 26,051 homes
- West Virgina : 1 foreclosure filing per 8,058 homes
- South Dakota : 1 foreclosure filing per 6,528 homes
Overall, 40 states beat the national Foreclosure Per Capita average and 10 states fell below. The sheer volume of REO, though, is creating interesting buying opportunities for first-time home buyers, move-up home buyers, and real estate investors in Crown Point Indiana.
Homes bought from banks are usually less expensive than non-foreclosure homes. This is one of the major reasons why distressed sales account for roughly 30 percent of all home resales. Less expensive, though, doesn’t always mean “cheaper”. Foreclosed homes are often sold as-is and may be defective or otherwise uninhabitable.
Making repairs to get these homes into “living condition” can be costly.
Therefore, if you’re buying a foreclosed home, make sure you know what you’re buying before you make your bid. Have a certified professional inspect the home to check for damage, and consider enlisting the help of a real estate agent to assist with negotiations and management of the contract.
The process of buying a foreclosed home is different from buying a typical resale. Make sure you do your homework. Otherwise, contact me for a referral to a great local real estate agent who can guide you through to a successful real estate transaction.
Foreclosures
Bank Repossessions Reach Record Levels Again
June 10, 2010 by James K Barath, CMPS · 1 Comment
According to foreclosure-tracking firm RealtyTrac.com, bank repossessions reached record levels for the second straight month in May, topping 93,000 properties nationwide.
As compared to May 2009, all 50 states now show an increase in annual REO activity.
Data like that won’t surprise today’s active home buyers in Valparaiso Indiana. Foreclosed homes are prevalent, available and accounted for one-third of all home resales made in April.
Furthermore, total foreclosure actions — the sum of REO, default notices, and foreclosure auctions in May — topped 300,000 for the 15th straight month.
Foreclosures remain a huge influence on the housing market.
However, two interesting trends emerged in the data:
- 9 of the top 10 metro areas for foreclosure posted annual activity decreases
- Each of the top 4 states for Foreclosures per Household posted annual activity decreases
We can infer, therefore, that foreclosure activity may be in permanent decline in the areas hardest hit through 2007, 2008, and 2009. In 2010, the data shows, foreclosures are waning.
This is reason for optimism — especially as FHA delinquencies slow nationwide. As fewer homeowners go delinquent, the pace of foreclosures will slow further and that should help boost home values on every block in the country.
If you’ve been considered bank-owned homes for your own purchase, give a look at the RealtyTrac foreclosure report. It’s provides insight on a state-by-state level, and in the nation’s largest metropolitan areas.
Then, to complement your research, talk to your real estate professional about the foreclosure market and what opportunities may exist. Competition for bank-owned homes can be fierce at times, but there’s plenty of “deals” out there.
You just have to know where to look. Need a referral to a great Realtor? Just ask.
Foreclosures
American Attitudes Toward Foreclosure, It May Surprise You
May 24, 2010 by James K Barath, CMPS · Leave a Comment
In case you missed the real estate news from May 20, 2010 the major headline that was being buzzed on news wires and social networks was…
The survey which was conducted from May 10-12, 2010 by Harris Interactive on behalf of Trulia.com and RealtyTrac, offered insight on American attitudes toward foreclosure and how home buyer sentiment has changed from a year ago. Overall the likelihoood that a U.S. adult would buy a foreclosure waned.
Be that as it may, take a look at the document below which was published on RealtyTrac’s blog site ForeclosurePulse. This visual snapshot of American attitudes toward foreclosure could result in the next housing boom.
Can you see the real estate opportunities for home buyers, investors and Realtors alike?
Foreclosures
Foreclosure Activity Slows For The First Time In Years
May 13, 2010 by James K Barath, CMPS · Leave a Comment
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.
Foreclosures
How To Buy Bank-Owned Homes In Today’s Market
April 15, 2010 by James K Barath, CMPS · Leave a Comment
Foreclosure filings rose close to 20 percent nationwide last month versus February, according to foreclosure-tracking firm RealtyTrac.com, and for the 13th straight month, total filings topped 300,000.
In addition, bank repossessions reached an all-time, quarterly record. Through the first three months of 2010, banks reclaimed more than 257,000 homes.
Nonetheless, 4 states dominated foreclosure activity nationwide.
California, Florida, Arizona and Georgia accounted for more than half of all bank repossessions. It’s a disproportionate distribution of foreclosures. Together, the 4 states represent just 23 percent of the overall U.S. population.
The RealtyTrac report revealed some other interesting statistics, too.
- Foreclosure activity was up in 40 out of 50 states last month
- Bank repossessions rose 9 percent versus the same quarter last year
- For the 13th straight quarter, Nevada topped the state foreclosure rate
Regardless of where you’re buying, foreclosures and REO are making a profound impact on pricing and product. Distressed homes are 35 percent of the overall resale market.
There’s excellent value in foreclosures out there if you know where to look, but keep these points in mind:
- Buying bank-owned homes can take 120 days to close or more. Be flexible.
- 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.
The REO market can be different from the traditional “existing home” market. Therefore, if you have an interest in buying REO, be sure to talk with an experienced real estate agent first.
Contact James K Barath in Northwest Indiana to Qualify for Your FREE FHA Home Loan Approval Today!
Foreclosures
1 In Every 418 U.S. Homes Recieved A Foreclosure Filing
March 11, 2010 by James K Barath, CMPS · 1 Comment
According to foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 12th straight month last month as 1 in every 418 U.S. homes received a foreclosure filing.
It’s a small improvement from January and a just 6 percent increase over February 2009.
On a per-capita basis, foreclosure density varied by state:
- Nevada : 1 foreclosure filing per 102 homes
- Florida : 1 foreclosure filing per 163 homes
- Arizona : 1 foreclosure filing per 163 homes
- California : 1 foreclosure filing per 195 homes
Also, as in January 2010, foreclosures across the country were concentrated. 10 states exceeded the national Foreclosure Per Capita average; 40 states fell below. Like everything else is real estate, it seems, foreclosures are local.
For today’s home buyers in Northwest Indiana, foreclosures represent an interesting opportunity.
Homes bought in various stages of foreclosure are often less expensive than other, non-foreclosure homes. It’s one reason why distressed home sales account for 38 percent of all resales. However, less expensive doesn’t always mean less costly. A foreclosed home may be in various stages of disrepair and they’re often sold as-is, as policy.
Buying a new or used home in Chesterton, Crown Point, Highland, Munster, Portage, Saint John, Schererville and Valparaiso can be cheaper than buying broken-down home.
Therefore, if you’re in the market for a bank-owned home, make sure you know what you’re buying before you sign a contract. Have qualified professionals review and inspect the property, as needed. Damage to pipes or the property’s structure, for example, may not be so obvious on a walk-though and you’ll want to know about it before you buy.
Also, foreclosed homes are federal tax credit-eligible. Buyers must be under contract by April 30, 2010 and closed by June 30, 2010.
Contact James K Barath in Northwest Indiana to Qualify for Your FREE FHA Home Loan Approval Today!
Foreclosures
Did Someone Say Foreclosures Are on The Downtrend
February 11, 2010 by James K Barath, CMPS · Leave a Comment
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 in Northwest Indiana.
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 Chesterton, Crown Point, Highland, Munster, Portage, Saint John, Schererville and Valparaiso. 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 in Chesterton, Crown Point, Highland, Munster, Portage, Saint John, Schererville and Valparaiso 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.
Contact James K Barath in Northwest Indiana to Qualify for Your FREE FHA Home Loan Approval Today!
