From Josh Cantwell - The Strategic Real Estate Coach newsletter 04/26/2010.
The most recent downturn in the housing market is far greater than during any other recession in our recent history – 1981, 1990, 2001. While there are glimmers of an upturn thanks to a slight turnaround in delinquencies and total foreclosures, the state of the housing market as a whole is still grim. As you can see by the chart below, the percentage increase in foreclosures over the past recessions paints quite a picture. In less than a year, the percentage increase in foreclosures since the previous peak was more than double any other recession.
This housing crisis is not limited geographically, as has happened in the past. It is being felt everywhere. Several factors contributed to result in this “perfect storm” of foreclosure rates. Falling home prices, which led to a negative equity position, combined with dramatic and sustained job loss, which means more instances of default and foreclosure. The loss of jobs (as opposed to the number of people without jobs) and the length of unemployment spell trouble. In a recession, unemployment duration rises. The percentage of the work force unemployed for at least six months rose to 4.3% of the total labor force, up from a previous high of 2.6% in 1983. The $75 billion government program designed to help distressed homeowners has had little impact so far, in part due to poor design. We’re on pace to exceed 3.7 million foreclosures this year. The rate of secondary default is very high because unemployment is still a looming issue. There’s still a long way to go to get out of this “Great Housing Bust.”
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, April 28, 2010
Thursday, April 15, 2010
FORECLOSURE ACTIVITY INCREASES 9 PERCENT IN FIRST QUARTER
Jefferson County Kentucky New Foreclosure Filings from March were 1,344, Year to Date there were 3,307, a year ago there were 3048 filings for the first quarter up 8.5%.
U.S. Foreclosure Activity Up 24 Percent From Q1 2008
March Activity Up 17 Percent From February, 46 Percent From March 2008
IRVINE, Calif. – April 16, 2009 – RealtyTrac® (http://www.realtytrac.com/), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for Q1 2009, which shows that foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 803,489 properties in the first quarter, a 9 percent increase from the previous quarter and an increase of nearly 24 percent from Q1 2008. One in every 159 U.S. housing units received a foreclosure filing during the quarter.
Foreclosure filings were reported on 341,180 properties in March, a 17 percent increase from the previous month and a 46 percent increase from March 2008. The March and Q1 2009 totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005 despite a decrease in bank repossessions (REOs), which were down 13 percent from the fourth quarter of 2008 and 3 percent from February totals.
“In the month of March we saw a record level of foreclosure activity — the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record. Since much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays,” said James J. Saccacio, chief executive officer of RealtyTrac. “It’s also likely that the drop in REO activity can be attributed to these processing delays, rather than to any of the foreclosure prevention programs currently in place. It’s very likely that we’ll see the number of REOs increase again now that most of the moratoria have been lifted.
“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,” Saccacio continued. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”
Nevada, Arizona, California post top state foreclosure rates in first quarter
Nevada continued to document the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing — more than five times the national average. Foreclosure filings were reported on 41,296 Nevada properties during the quarter, an increase of 19 percent from the previous quarter and an increase of nearly 111 percent from Q1 2008. Bank repossessions in Nevada were down 3 percent from the previous quarter, but defaults increased 27 percent and auction sale notices increased 35 percent.
Arizona posted the nation’s second highest state foreclosure rate for the first quarter, with one in every 54 housing units receiving a foreclosure filing, and California posted the nation’s third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.
Other states with foreclosure rates ranking among the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.
Five states account for nearly 60 percent of nation’s first quarter total
California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of the nation’s foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in the five states combined.
With 230,915 properties receiving foreclosure filings during the quarter, California accounted for nearly 29 percent of the nation’s total. The state’s foreclosure activity increased 35 percent from the previous quarter and 36 percent from Q1 2008, and the first-quarter total was state’s highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.
Despite a 12 percent decrease from the previous quarter, Florida’s first quarter total was still second highest in the nation. Foreclosure filings were reported on 119,220 Florida properties, a 36 percent increase from the first quarter of 2008. The state posted the nation’s fourth highest state foreclosure rate during the quarter, with one in every 73 housing units receiving a foreclosure filing.
Foreclosure filings were reported on 49,119 Arizona properties in the first quarter of 2009, the third highest total among the states, and 41,296 Nevada properties received a foreclosure filing in the first quarter of 2009, the fourth highest total among the states.
Illinois posted the nation’s fifth highest total, with 38,966 properties receiving a foreclosure filing during the first quarter — a 32 percent increase from the previous quarter and a 68 percent increase from the first quarter of 2008. With one in every 135 housing units receiving a foreclosure filing, the state’s foreclosure rate also ranked fifth highest among the states.
Rounding out the states with the 10 highest foreclosure activity totals in Q1 2009 were Michigan, Ohio, Georgia, Texas and Virginia.
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the month or quarter — broken out by type of filing at the state and national level. Data is also available at the individual county level for both Q1 2009 and March 2009. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the month or quarter, only the most recent filing is counted in the report.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
U.S. Foreclosure Activity Up 24 Percent From Q1 2008
March Activity Up 17 Percent From February, 46 Percent From March 2008
IRVINE, Calif. – April 16, 2009 – RealtyTrac® (http://www.realtytrac.com/), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for Q1 2009, which shows that foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 803,489 properties in the first quarter, a 9 percent increase from the previous quarter and an increase of nearly 24 percent from Q1 2008. One in every 159 U.S. housing units received a foreclosure filing during the quarter.
Foreclosure filings were reported on 341,180 properties in March, a 17 percent increase from the previous month and a 46 percent increase from March 2008. The March and Q1 2009 totals were the highest monthly and quarterly totals since RealtyTrac began issuing its report in January 2005 despite a decrease in bank repossessions (REOs), which were down 13 percent from the fourth quarter of 2008 and 3 percent from February totals.
“In the month of March we saw a record level of foreclosure activity — the number of households that received a foreclosure filing was more than 12 percent higher than the next highest month on record. Since much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays,” said James J. Saccacio, chief executive officer of RealtyTrac. “It’s also likely that the drop in REO activity can be attributed to these processing delays, rather than to any of the foreclosure prevention programs currently in place. It’s very likely that we’ll see the number of REOs increase again now that most of the moratoria have been lifted.
“On a positive note, it appears that demand is up in some of the harder-hit areas, particularly on bank-owned REO properties that first time homebuyers and investors see as bargains,” Saccacio continued. “But it’s unlikely that this increased demand will be enough to offset the growing number of foreclosures in the pipeline, accelerated by rising unemployment rates.”
Nevada, Arizona, California post top state foreclosure rates in first quarter
Nevada continued to document the nation’s highest state foreclosure rate in the first quarter, with one in every 27 housing units receiving a foreclosure filing — more than five times the national average. Foreclosure filings were reported on 41,296 Nevada properties during the quarter, an increase of 19 percent from the previous quarter and an increase of nearly 111 percent from Q1 2008. Bank repossessions in Nevada were down 3 percent from the previous quarter, but defaults increased 27 percent and auction sale notices increased 35 percent.
Arizona posted the nation’s second highest state foreclosure rate for the first quarter, with one in every 54 housing units receiving a foreclosure filing, and California posted the nation’s third highest state foreclosure rate, with one in every 58 housing units receiving a foreclosure filing.
Other states with foreclosure rates ranking among the top 10 in the first quarter were Florida, Illinois, Michigan, Georgia, Idaho, Utah and Oregon.
Five states account for nearly 60 percent of nation’s first quarter total
California, Florida, Arizona, Nevada and Illinois accounted for nearly 60 percent of the nation’s foreclosure activity in the first quarter, with 479,516 properties receiving foreclosure filings in the five states combined.
With 230,915 properties receiving foreclosure filings during the quarter, California accounted for nearly 29 percent of the nation’s total. The state’s foreclosure activity increased 35 percent from the previous quarter and 36 percent from Q1 2008, and the first-quarter total was state’s highest quarterly total since RealtyTrac began issuing its report in the first quarter of 2005.
Despite a 12 percent decrease from the previous quarter, Florida’s first quarter total was still second highest in the nation. Foreclosure filings were reported on 119,220 Florida properties, a 36 percent increase from the first quarter of 2008. The state posted the nation’s fourth highest state foreclosure rate during the quarter, with one in every 73 housing units receiving a foreclosure filing.
Foreclosure filings were reported on 49,119 Arizona properties in the first quarter of 2009, the third highest total among the states, and 41,296 Nevada properties received a foreclosure filing in the first quarter of 2009, the fourth highest total among the states.
Illinois posted the nation’s fifth highest total, with 38,966 properties receiving a foreclosure filing during the first quarter — a 32 percent increase from the previous quarter and a 68 percent increase from the first quarter of 2008. With one in every 135 housing units receiving a foreclosure filing, the state’s foreclosure rate also ranked fifth highest among the states.
Rounding out the states with the 10 highest foreclosure activity totals in Q1 2009 were Michigan, Ohio, Georgia, Texas and Virginia.
Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing reported during the month or quarter — broken out by type of filing at the state and national level. Data is also available at the individual county level for both Q1 2009 and March 2009. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). If more than one foreclosure document is filed against a property during the month or quarter, only the most recent filing is counted in the report.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Wednesday, April 14, 2010
Mortgate and Foreclosure News - Buy NOW!
Only 16 days left to qualify for the Federal tax credit. One must be under contract by April 30 and closed by June 30.
Now a little cheer leading. Today's news shows low inflation and a surge in retail sales. Both of these are just what the Doctor ordered for the economy. I believe that about 80% of the U.S. has moved on and is behaving economically about like normal (with a little more conservative slant). The other 20% is struggling with various employment problems which are going to continue to be slow to resolve.
If you read a lot you are overwhelmed with negative stats about real estate values. The truth is that, yes it has been a tough time for those who are invested in real estate. But that is very unusual. While the S & P has gone nowhere in the last decade (actually a little loss), real estate had still had gains. In fact even in the last 5 years ( which included the worst of times) all but 6 states have shown appreciation in home values. In that time frame many states have shown appreciation of 20-30%.
Numbers for Tennessee and Kentucky show a loss in value for the 4th quarter of 2009 of 1.22%, a loss last year of 3.12% and a surprising gain of 19.73% for the last 5 years. It is surprising only that it is not reported.
Bottom line, if someone is thinking of buying a home it is time.
Buy the way, we are going to just post a video every other week, but the good news is there will be a contest at least once per month.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Now a little cheer leading. Today's news shows low inflation and a surge in retail sales. Both of these are just what the Doctor ordered for the economy. I believe that about 80% of the U.S. has moved on and is behaving economically about like normal (with a little more conservative slant). The other 20% is struggling with various employment problems which are going to continue to be slow to resolve.
If you read a lot you are overwhelmed with negative stats about real estate values. The truth is that, yes it has been a tough time for those who are invested in real estate. But that is very unusual. While the S & P has gone nowhere in the last decade (actually a little loss), real estate had still had gains. In fact even in the last 5 years ( which included the worst of times) all but 6 states have shown appreciation in home values. In that time frame many states have shown appreciation of 20-30%.
Numbers for Tennessee and Kentucky show a loss in value for the 4th quarter of 2009 of 1.22%, a loss last year of 3.12% and a surprising gain of 19.73% for the last 5 years. It is surprising only that it is not reported.
Bottom line, if someone is thinking of buying a home it is time.
Buy the way, we are going to just post a video every other week, but the good news is there will be a contest at least once per month.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Monday, April 5, 2010
Short Sales are a Way Out for Homeowners
Nearly 5 million people around the country are seriously delinquent on their mortgages. Some may be able to save their homes if they can negotiate a loan modification with a lower payment from a lender. But others simply don't have enough income even for that.
For many of those troubled homeowners, a "short sale" is a better alternative than foreclosure.
Here's how a short sale works: A bank agrees to sell a house at the current market value without foreclosing, allowing the owner to simply walk away because the bank forgives the rest of the debt.
The federal government is launching a new program Monday to encourage more short sales. The Treasury Department will offer lenders and homeowners incentives totaling more than $3,000.
A Short Sale In Boston
On a busy street in Boston's Dorchester neighborhood, real estate agent Curtis Howe walks up to a brick townhouse that was rehabbed about 10 years ago. It's in a part of town where properties got way overvalued during the housing bubble. Howe says the outstanding mortgage was about $540,000; the property eventually sold for $275,000 in a short sale. That is a huge drop in value, and the lenders who were on the hook for that loan lost a ton of money. But there's still an upside for lenders.
"When a property goes into foreclosure and becomes vacant, it's vandalized, you have plumbing issues if the property isn't winterized, and there's nobody to maintain the property," Howe says. And, he adds, a short sale typically gets a higher price than a foreclosure.
A Complicated Short-Sale Process
Banks can cut their losses by doing short sales, and homeowners can do less damage to their credit. A homeowner also avoids the ordeal of a foreclosure, which can include eviction.
But often obstacles can derail short sales or make the process drag on. With the house in Boston's Dorchester neighborhood, Howe says, "It was a long process and it was just a little less than two years to get short sale approval and sale."
Laurie Maggiano, a director of policy at the Treasury Department, says: "There have been many, many delays and lots of complications with the short-sale process."
Some people don't like the idea of more bailouts for banks — or for homeowners, some of whom bought houses that they just couldn't afford.
"We're not here to make moral judgments about borrowers; we are here to stabilize the mortgage market," Maggiano says. She says the major cause of default and foreclosure right now is unemployment. Short sales, she adds, are less damaging to the housing market than foreclosures because there aren't vacant homes blighting neighborhoods.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
For many of those troubled homeowners, a "short sale" is a better alternative than foreclosure.
Here's how a short sale works: A bank agrees to sell a house at the current market value without foreclosing, allowing the owner to simply walk away because the bank forgives the rest of the debt.
The federal government is launching a new program Monday to encourage more short sales. The Treasury Department will offer lenders and homeowners incentives totaling more than $3,000.
A Short Sale In Boston
On a busy street in Boston's Dorchester neighborhood, real estate agent Curtis Howe walks up to a brick townhouse that was rehabbed about 10 years ago. It's in a part of town where properties got way overvalued during the housing bubble. Howe says the outstanding mortgage was about $540,000; the property eventually sold for $275,000 in a short sale. That is a huge drop in value, and the lenders who were on the hook for that loan lost a ton of money. But there's still an upside for lenders.
"When a property goes into foreclosure and becomes vacant, it's vandalized, you have plumbing issues if the property isn't winterized, and there's nobody to maintain the property," Howe says. And, he adds, a short sale typically gets a higher price than a foreclosure.
A Complicated Short-Sale Process
Banks can cut their losses by doing short sales, and homeowners can do less damage to their credit. A homeowner also avoids the ordeal of a foreclosure, which can include eviction.
But often obstacles can derail short sales or make the process drag on. With the house in Boston's Dorchester neighborhood, Howe says, "It was a long process and it was just a little less than two years to get short sale approval and sale."
Laurie Maggiano, a director of policy at the Treasury Department, says: "There have been many, many delays and lots of complications with the short-sale process."
Some people don't like the idea of more bailouts for banks — or for homeowners, some of whom bought houses that they just couldn't afford.
"We're not here to make moral judgments about borrowers; we are here to stabilize the mortgage market," Maggiano says. She says the major cause of default and foreclosure right now is unemployment. Short sales, she adds, are less damaging to the housing market than foreclosures because there aren't vacant homes blighting neighborhoods.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! We are experts in the Short Sale Process and have the experience needed to work with your bank! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Thursday, April 1, 2010
The Federal Reserve is no longer backing Freddie Mac and Fannie Mae Mortgages
As of March 31 the Federal Reserve is no longer buying mortgage-backed securities (MBS), terminating a large component of its effort to stabilize and stimulate the economy. The Fed poured $1.25 trillion dollars into purchasing risky bundles of housing loans, providing capital for troubled lenders and investors in the mortgage-backed market.
The Fed's purchasing program provided much-needed liquidity for government-run mortgage financing companies Freddie Mac ( FRE - news - people ) and Fannie Mae ( FNM - news - people ) to buy bank loans issued to home buyers. The program also allowed mortgage rates to remain abnormally low, which let borrowers make more manageable payments and new home buyers purchase properties. Indeed rates have been low: 30-year fixed mortgage rates at 5% interest and adjustable mortgage rates with interest in the low 4s.
Article Control
Many analysts and investors remain skeptical over the Fed's decision to stop buying MBS, worrying the move may push adjustable interest rates higher. Higher rates could trigger a rise in loan delinquency rates and therefore foreclosures; it could also cause further value depreciation of properties, since buyers would not be able to afford to spend as much on the properties themselves. In turn, higher loan delinquencies would deter private investors from buying mortgage-backed securities, drying up liquidity.
Freddie Mac's CEO, Ed Haldeman, does not share this skepticism. "There's not going to be, at least in the short term, a major dislocation and a major move up in mortgage rates."
Video: What Will Happen To Mortgages?
If anyone has a pulse on the potential for rising foreclosure rates, it's Haldeman. Fannie, Freddie and government programs from the FHA and VA account for more than 90% of the single-family home loans on the market. The Fed will also do its part to keep rates low, as it has reserved the right to resume purchasing MBS if necessary.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
The Fed's purchasing program provided much-needed liquidity for government-run mortgage financing companies Freddie Mac ( FRE - news - people ) and Fannie Mae ( FNM - news - people ) to buy bank loans issued to home buyers. The program also allowed mortgage rates to remain abnormally low, which let borrowers make more manageable payments and new home buyers purchase properties. Indeed rates have been low: 30-year fixed mortgage rates at 5% interest and adjustable mortgage rates with interest in the low 4s.
Article Control
Many analysts and investors remain skeptical over the Fed's decision to stop buying MBS, worrying the move may push adjustable interest rates higher. Higher rates could trigger a rise in loan delinquency rates and therefore foreclosures; it could also cause further value depreciation of properties, since buyers would not be able to afford to spend as much on the properties themselves. In turn, higher loan delinquencies would deter private investors from buying mortgage-backed securities, drying up liquidity.
Freddie Mac's CEO, Ed Haldeman, does not share this skepticism. "There's not going to be, at least in the short term, a major dislocation and a major move up in mortgage rates."
Video: What Will Happen To Mortgages?
If anyone has a pulse on the potential for rising foreclosure rates, it's Haldeman. Fannie, Freddie and government programs from the FHA and VA account for more than 90% of the single-family home loans on the market. The Fed will also do its part to keep rates low, as it has reserved the right to resume purchasing MBS if necessary.
If your worried about foreclosure American Eagle Realty can help you with solid answers about your rights and options before your house is foreclosed on! Contact us we can help.....
American Eagle Realty
www.american-eagle-realty.com
502-969-1801
Subscribe to:
Posts (Atom)