Foreclosure Filings Fall To 49-Month Low
Foreclosure filings are fewer these days, according to foreclosure-tracking firm RealtyTrac.
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In December 2011, the number of foreclosure filings nationwide fell 9 percent from the month prior. Not since November 2007 has foreclosure activity been this sparse across the country.
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The drop does not appear to be seasonal, either! If you’ve been waiting for a bottom in the real estate market NOW is the time to contact one of the Realtors on our fb Home Buyer’s Educational Page.
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Last month’s foreclosure filings were down 20 percent from December 2010 with “foreclosure filing” defined to include any one of the following foreclosure-related events : (1) The serving of a default notice, (2) A scheduled home auction, or (3) A bank repossession. As a result of a unexpectedly strong year-end, 2011′s annual foreclosure rate was the lowest in 4 years.
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One reason why the year may have closed so strongly is that Nevada, California, Michigan and Arizona — four states typically associated with high rates of foreclosures — each posted big drops in foreclosure filings between November and December, plus double-digit drops between December 2010 and December 2011.
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In fact, among the country’s top 10 states for foreclosure activity, nine showed an annual foreclosure filing reduction.
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Only Delaware worsened.
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It’s also noteworthy that just 4 states accounted for half of last month’s total foreclosure filings.
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California : 25.8 percent of all foreclosure filings
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Florida : 12.0 percent of all foreclosure filings
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Michigan : 6.4 percent of all foreclosure filings
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Illinois : 6.2 percent of all foreclosure filings
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Foreclosures are heavily concentrated, in other words. By contrast, the last 1% of activity is spread across 14 states.
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As a home buyer — first-timer or investor — foreclosures can be a great way to find value. Distressed homes on average sale for 20 to 25 Percent less that a comparable non foreclosures. Additional discounts can be negotiated by your Realtor to cover the cost for necessary repairs or renovations and the FHA 203K or FNMA HomePath Loan Programs gives you the ability to include these cost into your mortgage.
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According to the National Association of REALTORS®, distressed homes typically sell at “deep discounts“ as compared to like, non-distressed homes. However, when you buy a foreclosure home from a bank, it’s different from buying a home from a “person”. Purchase contract negotiations are different and significant time may pass before your contract is accepted, so start shopping now to get the process going.
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If you’re buying foreclosure, I can’t stress enough to consult with a qualified Realtor. Realtors on our fb Home Buyer’s Educational Page have experience working in the process-heavy world of foreclosures and can help you come out ahead.
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SHORT SALES & FHA 203K OR FNMA HOMESTYLE
FHA 203K ~ A DISTRESSED HOME MARKETING TOOL FOR REALTORS
FANNIE MAE HOMESTYLE ~ A DISTRESSED HOME MARKETING TOOL FOR REALTORS
There certainly are lots of reasons as have been discussed. Now that robo-signing is not the issue I would expect the filings to increase significantly…especially with the governement ready to dump large packages to institutional investors – surely will bring prices down.
The issue for us in the real estate industry is to use financing tools like the FHA 203k to move what inventory is available. With inventory expected to rise, maybe sellers of distressed property wil get more realistic about selling at whatever market prices are.
If we do our job to help people be better prepared for a 203k transaction, the sellers will take those deals!