LOS ANGELES -- Lenders took back more homes in August than in any month since the start of the U.S. mortgage crisis.
The increase in home repossessions came even as the number of properties entering the foreclosure process slowed for the seventh month in a row, foreclosure listing firm RealtyTrac Inc. said Thursday.
In all, banks repossessed 95,364 properties last month, up 3 percent from July and an increase of 25 percent from August 2009, RealtyTrac said.
August makes the ninth month in a row that the pace of homes lost to foreclosure has increased on an annual basis. The previous high was in May.
Banks have been stepping up repossessions to clear out their backlog of bad loans with an eye on eventually placing the foreclosed properties on the market, but they can't afford to simply dump the properties on the market.
YOU MIGHT ALSO BE INTERESTED IN
U.S. Navy limiting use of 'Cyclone' patrol boats
Ten Worst Places to Live
President Changes Tune on Health-Care Costs
Why Did Jack Daniel Name it 'Old No. 7'?
FedEx Forecast, Data Pressures Futures
Concerns are growing that the housing market recovery could stumble amid stubbornly high unemployment, a sluggish economy and faltering consumer confidence. U.S. home sales have collapsed since federal homebuyer tax credits expired in April.
That's one reason fewer than one-third of homes repossessed by lenders are on the market, said Rick Sharga, a senior vice president at RealtyTrac.
"These (properties) are going to come to market, but very slowly because nobody wants to overwhelm a soft buyer's market with too much distressed inventory for fear of what it would do for house prices," he said.
As a result, lenders are putting off initiating the foreclosure process on homeowners who have missed payments, letting borrowers stay in their homes longer.
The number of properties receiving an initial default notice -- the first step in the foreclosure process -- slipped 1 percent last month from July, but was down 30 percent versus August last year, RealtyTrac said.
Initial defaults have fallen on an annual basis the past seven months. They peaked in April 2009.
Still, the number of homes scheduled to be sold at auction for the first time increased 9 percent from July and rose 2 percent from August last year. If they don't sell at auction, these homes typically end up going back to the lender.
More than 2.3 million homes have been repossessed by lenders since the recession began in December 2007, according to RealtyTrac. The firm estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 338,836 properties received a foreclosure-related warning in August, up 4 percent from July, but down 5 percent from the same month last year, RealtyTrac said. That translates to one in 381 U.S. homes.
The firm tracks notices for defaults, scheduled home auctions and home repossessions -- warnings that can lead up to a home eventually being lost to foreclosure.
Among states, Nevada posted the highest foreclosure rate last month, with one in every 84 households receiving a foreclosure notice. That's 4.5 times the national average.
Rounding out the top 10 states with the highest foreclosure rate in August were: Florida, Arizona, California, Idaho, Utah, Georgia, Michigan, Illinois and Hawaii.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures.
Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can't qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. Nearly half of the 1.3 million homeowners who enrolled in the Obama administration's flagship mortgage-relief program have fallen out.
The program, known as Making Home Affordable, has provided permanent help to about 422,000 homeowners since March 2009.
Regardless, many troubled borrowers have seen their efforts to get a loan modification stymied.
Larry Book of Winter Garden, Fla., was one packet away from a permanent loan modification from Chase under the Obama administration's foreclosure prevention plan after more than a year of back and forth and one failed attempt.
But his modification never went through. Instead, his loan was transferred from Chase to IBM Lender Business Process Servicers in July and he was told he owed $9,562.62 and must bring his mortgage current by Sept. 15 or foreclosure proceedings will begin.
"It just becomes too exhausting," Book said about the modification process. "That's why some people walk away. But I've invested too much and given up too much to just let it go.
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, September 16, 2010
Friday, August 20, 2010
Commercial Real Estate Falling Behind
There are five states with commercial mortgage
delinquencies over 10%:
Nevada, Montana, Michigan, Arizona and Florida.
All of the other states are close to these delinquency
rates. There is no shortage of distressed commercial real
estate opportunities right now and it’s much easier to get in this
game than it used to be. Commercial loans that were
originated in 2006-2007 have doubled this quarter and are
defaulting at 3.95% and 4.28%. Loans originated in 2008 are
defaulting at 7.82%. Pretty eye opening, huh? That makes it
easy for you to find which properties to go after.
If you think that’s bad, check this out. These are the
delinquency rates for the different types of commercial
properties as of October 2009:
Office 2.29%
Hotel 6.81%
Retail 3.55%
Multifamily 6.00%
Industrial 3.09%
We are seeing the same signs of what the lenders did during
the 1981-82 and 1990-1991 recessions. There were more
millionaires made during then in commercial real estate
than any other time.
delinquencies over 10%:
Nevada, Montana, Michigan, Arizona and Florida.
All of the other states are close to these delinquency
rates. There is no shortage of distressed commercial real
estate opportunities right now and it’s much easier to get in this
game than it used to be. Commercial loans that were
originated in 2006-2007 have doubled this quarter and are
defaulting at 3.95% and 4.28%. Loans originated in 2008 are
defaulting at 7.82%. Pretty eye opening, huh? That makes it
easy for you to find which properties to go after.
If you think that’s bad, check this out. These are the
delinquency rates for the different types of commercial
properties as of October 2009:
Office 2.29%
Hotel 6.81%
Retail 3.55%
Multifamily 6.00%
Industrial 3.09%
We are seeing the same signs of what the lenders did during
the 1981-82 and 1990-1991 recessions. There were more
millionaires made during then in commercial real estate
than any other time.
Thursday, August 12, 2010
Homes lost to foreclosure up 6 pct from last year
Home repossessions surged in July, but pace of new home loan defaults continued to slow
The number of U.S. homes lost to foreclosure surged in July, another sign lenders are moving quicker to take back properties from homeowners behind in payments.
Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, foreclosure listing firm RealtyTrac Inc. said Thursday.
Banks have stepped up repossessions this year to clear out the backlog of bad loans. July makes the eighth month in a row that the pace of homes lost to foreclosure has increased on an annual basis.
Meanwhile, homeowners who are falling behind on their payments are being allowed to stay in their homes longer because lenders are reluctant to add to the glut of foreclosed homes on the market.
Story continues below...
The number of properties receiving an initial default notice — the first step in the foreclosure process — rose 1 percent last month from June, but tumbled 28 percent versus July last year, RealtyTrac said.
Initial defaults have fallen on an annual basis the past six months.
The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures. Initially, lax lending standards were the culprit, but homeowners with good credit who took out conventional, fixed-rate loans are now the fastest growing group of foreclosures.
Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can't qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.
Still, RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year, RealtyTrac said. That translates to one in 397 U.S. homes.
The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure.
Among states, Nevada posted the highest foreclosure rate in July, with one in every 82 households receiving a foreclosure notice. The number of properties in Nevada receiving a foreclosure warning last month rose nearly 7 percent from June, but fell nearly 30 percent from the same month last year.
Rounding out the top 10 states with the highest foreclosure rate last month were: Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.
Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one in every 71 homes receiving a foreclosure notice in July — more than five times the national average.
Source: AP News
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
The number of U.S. homes lost to foreclosure surged in July, another sign lenders are moving quicker to take back properties from homeowners behind in payments.
Lenders repossessed 92,858 properties last month, up 9 percent from June and an increase of 6 percent from July 2009, foreclosure listing firm RealtyTrac Inc. said Thursday.
Banks have stepped up repossessions this year to clear out the backlog of bad loans. July makes the eighth month in a row that the pace of homes lost to foreclosure has increased on an annual basis.
Meanwhile, homeowners who are falling behind on their payments are being allowed to stay in their homes longer because lenders are reluctant to add to the glut of foreclosed homes on the market.
Story continues below...
The number of properties receiving an initial default notice — the first step in the foreclosure process — rose 1 percent last month from June, but tumbled 28 percent versus July last year, RealtyTrac said.
Initial defaults have fallen on an annual basis the past six months.
The latest data reflect a foreclosure crisis that continues to drag on as many homeowners struggle to make their monthly payments amid high unemployment, slow job growth and an uneven rebound in home prices.
Economic woes, such as unemployment or reduced income, are now the main catalysts for foreclosures. Initially, lax lending standards were the culprit, but homeowners with good credit who took out conventional, fixed-rate loans are now the fastest growing group of foreclosures.
Lenders are offering a variety of programs to help homeowners modify their loans, but their success rates vary. Hundreds of thousands of homeowners can't qualify or fall back into default.
The Obama administration has rolled out numerous attempts to tackle the foreclosure crisis but has made only a small dent in the problem. More than 40 percent, or about 530,000 homeowners, have fallen out of the administration's main effort to assist those facing foreclosure.
That program, known as Making Home Affordable, has provided permanent help to about 390,000 homeowners, or 30 percent of the 1.3 million who have enrolled since March 2009.
Still, RealtyTrac estimates more than 1 million American households are likely to lose their homes to foreclosure this year.
In all, 325,229 properties received a foreclosure-related warning in July, up 4 percent from June, but down 10 percent from the same month last year, RealtyTrac said. That translates to one in 397 U.S. homes.
The firm tracks notices for defaults, scheduled home auctions and home repossessions — warnings that can lead up to a home eventually being lost to foreclosure.
Among states, Nevada posted the highest foreclosure rate in July, with one in every 82 households receiving a foreclosure notice. The number of properties in Nevada receiving a foreclosure warning last month rose nearly 7 percent from June, but fell nearly 30 percent from the same month last year.
Rounding out the top 10 states with the highest foreclosure rate last month were: Arizona, Florida, California, Idaho, Michigan, Utah, Illinois, Georgia and Maryland.
Las Vegas continued to be the city with the highest foreclosure rate in the U.S., with one in every 71 homes receiving a foreclosure notice in July — more than five times the national average.
Source: AP News
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, July 22, 2010
U.S. Home Seizures Rise 38% to Record as Banks Process Backlog
A record 269,962 U.S. homes were seized from delinquent owners in the second quarter as lenders set a pace to claim more than 1 million properties by the end of 2010, according to RealtyTrac Inc.
Home seizures climbed 38 percent from a year earlier and 5 percent from the first quarter, the Irvine, California-based data company said today in a statement. More than 1.65 million properties received a foreclosure filing, including notices of default, auction and bank repossession, in the first half. That was up 8 percent from the first six months of 2009.
“Foreclosures haven’t peaked yet,” Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts, said in a telephone interview. Unemployment suggests that bank repossessions may climb for another six to nine months, he said.
Waning consumer confidence and the jobless rate, which was 9.5 percent in June, are holding back a housing recovery. The expiration of a federal tax credit for homebuyers also cut demand, even as average borrowing costs for a 30-year fixed-rate loan set record lows. The rate was 4.57 percent last week, according to McLean, Virginia-based mortgage finance company Freddie Mac.
“It’s not interest rates that will get us out of this, but jobs,” Retsinas said. “New defaults seem to have stabilized, but there’s still a lot of volatility overall.”
One in 78 U.S. households received a foreclosure filing in the first half, and filings surpassed 300,000 for the 16th consecutive month in June, RealtyTrac said. A total of 529,633 homes were seized by lenders -- the last stage of the foreclosure process -- in the first half, said Daren Blomquist, the data firm’s marketing manager.
Clearing Backlog
Banks are trying to avert foreclosure in some cases by modifying loans or attempting short sales, where a property is sold for less than the amount owed. That’s pushing down the number of new default notices even as lenders “cleared out a backlog” and seized more homes, James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement.
The number of properties that got a filing from April through June totaled 895,521, a 4 percent drop from the previous quarter and little changed from a year earlier. Total filings for the year are forecast to exceed 3 million, according to the data company.
“While the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” Saccachio said.
Nevada, Arizona
Nevada had the highest foreclosure rate, as one in 17 households received a filing in the first half. The number of properties that got a notice totaled 64,429, down 13 percent from the previous six months and 6 percent from a year earlier.
Arizona ranked second at one in 30 households and Florida was third at one in 32. Rounding out the 10 highest rates were California, Utah, Georgia, Michigan, Idaho, Illinois and Colorado.
California led in total filings as 340,740 properties got a notice, down 15 percent from the previous six months and almost 13 percent from a year earlier, according to RealtyTrac.
Florida was second with 277,073 properties, down 9 percent from the previous six months and up 3 percent from the first half of 2009. Arizona was third at 91,484, down almost 2 percent from the previous period and up by a similar proportion from a year earlier.
Other states among the 10 highest totals were Illinois at 85,223; Michigan at 78,509; Georgia at 71,949; Texas at 64,883; Nevada at 64,429; Ohio at 59,927; and New Jersey at 36,542.
By Dan Levy - Jul 15, 2010
RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.
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
Home seizures climbed 38 percent from a year earlier and 5 percent from the first quarter, the Irvine, California-based data company said today in a statement. More than 1.65 million properties received a foreclosure filing, including notices of default, auction and bank repossession, in the first half. That was up 8 percent from the first six months of 2009.
“Foreclosures haven’t peaked yet,” Nicolas Retsinas, director of Harvard University’s Joint Center for Housing Studies in Cambridge, Massachusetts, said in a telephone interview. Unemployment suggests that bank repossessions may climb for another six to nine months, he said.
Waning consumer confidence and the jobless rate, which was 9.5 percent in June, are holding back a housing recovery. The expiration of a federal tax credit for homebuyers also cut demand, even as average borrowing costs for a 30-year fixed-rate loan set record lows. The rate was 4.57 percent last week, according to McLean, Virginia-based mortgage finance company Freddie Mac.
“It’s not interest rates that will get us out of this, but jobs,” Retsinas said. “New defaults seem to have stabilized, but there’s still a lot of volatility overall.”
One in 78 U.S. households received a foreclosure filing in the first half, and filings surpassed 300,000 for the 16th consecutive month in June, RealtyTrac said. A total of 529,633 homes were seized by lenders -- the last stage of the foreclosure process -- in the first half, said Daren Blomquist, the data firm’s marketing manager.
Clearing Backlog
Banks are trying to avert foreclosure in some cases by modifying loans or attempting short sales, where a property is sold for less than the amount owed. That’s pushing down the number of new default notices even as lenders “cleared out a backlog” and seized more homes, James J. Saccacio, RealtyTrac’s chief executive officer, said in the statement.
The number of properties that got a filing from April through June totaled 895,521, a 4 percent drop from the previous quarter and little changed from a year earlier. Total filings for the year are forecast to exceed 3 million, according to the data company.
“While the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market,” Saccachio said.
Nevada, Arizona
Nevada had the highest foreclosure rate, as one in 17 households received a filing in the first half. The number of properties that got a notice totaled 64,429, down 13 percent from the previous six months and 6 percent from a year earlier.
Arizona ranked second at one in 30 households and Florida was third at one in 32. Rounding out the 10 highest rates were California, Utah, Georgia, Michigan, Idaho, Illinois and Colorado.
California led in total filings as 340,740 properties got a notice, down 15 percent from the previous six months and almost 13 percent from a year earlier, according to RealtyTrac.
Florida was second with 277,073 properties, down 9 percent from the previous six months and up 3 percent from the first half of 2009. Arizona was third at 91,484, down almost 2 percent from the previous period and up by a similar proportion from a year earlier.
Other states among the 10 highest totals were Illinois at 85,223; Michigan at 78,509; Georgia at 71,949; Texas at 64,883; Nevada at 64,429; Ohio at 59,927; and New Jersey at 36,542.
By Dan Levy - Jul 15, 2010
RealtyTrac sells default data from more than 2,200 counties representing 90 percent of the U.S. population.
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
Tuesday, July 20, 2010
Mortgage modifications jump 15% but more than 40% leave program
The total number of homeowners getting permanent mortgage modifications under the Obama Administration's program increased nearly 15% in June, but a large number of borrowers are being ousted from the program.
Growth in permanent modifications have averaged more than 50,000 per month over the last six months, according to a report Tuesday by the Treasury Department. A total of 530,000 homeowners, which amounts to about 40% of borrowers, have had their permanent modifications canceled.
REPORT:Mortgage modification program through June 2010
SCORECARD: Efforts to help American homeowners
Borrowers may be removed from the program for not providing proper documentation such as proof of income.
A total of 389,198 homeowners have gotten permanent modifications.
"It's good. The housing market and economy are starting to resolve the issues, though it's going to take years," says Joel Naroff, with Naroff economic Advisors. "It's helping. It's working to some extent."
For the first time, the government also included information on how many borrowers with modifications are re-defaulting. For permanent modifications that have been in place for six months, fewer than 6% are 60 or more days delinquent. Fewer than 3% of homeowners in permanent modifications at nine months have defaulted on their modification.
The low re-default rate may be because borrowers who were going to be unable to make payments defaulted earlier in the program, economists say. It could also be that the job market is stronger today so fewer homeowners are losing their jobs and sources of income.
"Now a lot of people getting modifications are keeping their jobs," Naroff says, adding that more stable home prices also provide an incentive to remain current on payments. "And they're not losing equity. Indeed, it may be going up."
Homeowners in permanent modifications are guaranteed lower payments for five years, then fixed terms at today's low rates for the life of the loan. Those in the permanent modifications experience a median payment reduction of 36%, more than $500 per month.
Homeowners get a temporary modification for three months. If they remain current on those payments during that time, they are then moved into a permanent modification.
All borrowers get interest rate reductions, but about 56% also get a term extension on their loan. Another 29.1% have gotten reduction in principal. The predominant reason homeowners seek a modification is loss of income.
Changes in the program, such as expanding it to allow for more principal reduction and incentives for short sales, may make it more widely used in coming months.
"(The program) is not helping a lot of people, but for those that have gotten it, it seems to be working reasonably well," says Mark Zandi, with Moody's Analytics. "The problem is not a lot of people are getting it."
By Stephanie Armour, USA TODAY
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
Growth in permanent modifications have averaged more than 50,000 per month over the last six months, according to a report Tuesday by the Treasury Department. A total of 530,000 homeowners, which amounts to about 40% of borrowers, have had their permanent modifications canceled.
REPORT:Mortgage modification program through June 2010
SCORECARD: Efforts to help American homeowners
Borrowers may be removed from the program for not providing proper documentation such as proof of income.
A total of 389,198 homeowners have gotten permanent modifications.
"It's good. The housing market and economy are starting to resolve the issues, though it's going to take years," says Joel Naroff, with Naroff economic Advisors. "It's helping. It's working to some extent."
For the first time, the government also included information on how many borrowers with modifications are re-defaulting. For permanent modifications that have been in place for six months, fewer than 6% are 60 or more days delinquent. Fewer than 3% of homeowners in permanent modifications at nine months have defaulted on their modification.
The low re-default rate may be because borrowers who were going to be unable to make payments defaulted earlier in the program, economists say. It could also be that the job market is stronger today so fewer homeowners are losing their jobs and sources of income.
"Now a lot of people getting modifications are keeping their jobs," Naroff says, adding that more stable home prices also provide an incentive to remain current on payments. "And they're not losing equity. Indeed, it may be going up."
Homeowners in permanent modifications are guaranteed lower payments for five years, then fixed terms at today's low rates for the life of the loan. Those in the permanent modifications experience a median payment reduction of 36%, more than $500 per month.
Homeowners get a temporary modification for three months. If they remain current on those payments during that time, they are then moved into a permanent modification.
All borrowers get interest rate reductions, but about 56% also get a term extension on their loan. Another 29.1% have gotten reduction in principal. The predominant reason homeowners seek a modification is loss of income.
Changes in the program, such as expanding it to allow for more principal reduction and incentives for short sales, may make it more widely used in coming months.
"(The program) is not helping a lot of people, but for those that have gotten it, it seems to be working reasonably well," says Mark Zandi, with Moody's Analytics. "The problem is not a lot of people are getting it."
By Stephanie Armour, USA TODAY
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
Friday, July 16, 2010
Foreclosures in U.S. Reach a Record High! ------What Recovery?
Foreclosures in U.S. reach a record high
By ALEJANDRO LAZO - Los Angeles Times
LOS ANGELES -- The number of U.S. homes taken back by banks through foreclosure hit a record high in the second quarter, even as lenders delayed more homes from entering the process through short sales and loan modification efforts, according to data to be released Thursday.
This growing supply of lender-owned properties could set back the nation's housing recovery but probably won't sink it completely if the nation's employment situation doesn't deteriorate further and the economy begins to pick up steam, experts said. Sales of homes have faltered nationally in recent months with the expiration of government tax incentives for buyers.
U.S. bank repossessions increased 38 percent in the second quarter from the same period a year earlier for a record total of 269,952, according to Irvine, Calif., research firm RealtyTrac. That was also a jump of 5 percent from the previous quarter. If that pace continues through the year, the number of homes taken by banks is likely to top 1 million by the end of 2010, said Rick Sharga, RealtyTrac senior vice president.
More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.
Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.
"That would be unprecedented," said Rick Sharga, a senior vice president at RealtyTrac.
Millions of Americans are still likely to lose their homes in the coming years, but the foreclosure crisis is finally showing signs of subsiding.
The number of households facing foreclosure in April fell 2 percent from a year ago, the first annual decline in five years, RealtyTrac Inc. said Thursday.
But the data aren't all sunny. While the number of new delinquencies is dropping, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.
The number of U.S. households facing foreclosure in January increased 15 percent from the same month last year, and a surge in cash-strapped homeowners who've fallen behind on mortgages could be on the way.
More than 315,000 households received a foreclosure-related notice in January, RealtyTrac Inc. reported Thursday. That number is down nearly 10 percent from 349,000 in December.
In January, one in 409 homes was sent a filing, which includes default notices, scheduled foreclosure auctions and bank repossessions. Banks repossessed more than 87,000 homes last month, down 5 percent from December but still up 31 percent from January 2009.
Foreclosures are likely to be a part of the real estate market for several years, but opinions about distressed properties are shifting, according to a study released this week.
Realty Trac, a company that tracks foreclosures nationwide, teamed with Trulia Inc., a real estate website, to study foreclosure opinions in the United States.
The study, conducted for the companies by Harris Interactive, found that fewer potential home buyers would consider buying a foreclosure than last year and fewer survey takers had negative opinions about foreclosures.
Foreclosures increased in Horry and Georgetown counties in March, and officials say they don't expect to see a decline any time soon.
In March, foreclosures in Horry County were up 8percent from the same month last year and up 50 percent in Georgetown County, according to data released this week by Realty Trac, a company that tracks foreclosures across the United States.
There was a 129 percent jump in foreclosures in the first three months of the year in Georgetown when compared with the previous three months, and a 50 percent increase from the same months last year.
"It is almost a certainty that we will see over a million over the course of the year, and that would definitely be a record," he said. "It's serious, but it doesn't appear to be that these levels will crater the housing market if the economy at least stabilizes and we do start to see some job creation."
A total of 895,521 foreclosure notices were filed on U.S. properties during the second quarter, an increase of less than 1 percent from the same quarter a year earlier and a 4 percent decrease from the first quarter, according to RealtyTrac. Notices of default - the first stage of the foreclosure process - were down 19 percent from the same quarter a year earlier and 11 percent from the first quarter.
"What is happening is that the number of loans that are going into delinquency is abating, but the number of loans that are moving through the foreclosure process is rising," said Mark Zandi, chief economist for Moody's Economy.com. "This is because many loans got piled up in the foreclosure process as mortgage servicers tried to figure out all the various loan modification plans and policy efforts to mitigate foreclosure activity. Now, at this point, servicers are figuring out these programs and are starting to push loans through the process."
Because housing has stabilized and banks have improved their financial positions since the start of the financial crisis, regulators are pressing them to get rid of their troubled loans.
"There is growing pressure on the banks to get problem residential loans worked out one way or another," said Bert Ely, an independent banking consultant. "And the sense is that, in most markets, we are through the worst of it to the extent the economy improves at all."
In California, foreclosure filings totaled 192,422 in the second quarter, a 24 percent decrease from the same quarter a year earlier and an 11 percent drop from the first three months of the year. Notices of default were down 43 percent from a year earlier and 15 percent from the first three months of the year.
California also appears to be bucking the trend in bank seizures, with that number up only 1 percent at the end of the second quarter from the year-earlier quarter and down 1.5 percent from the first quarter. That relatively moderate increase is probably because banks are purposely postponing the auctions of homes to keep a flood of properties off the market, Sharga said, and will not last forever.
"California might be too saturated, in terms of what the banks are willing to put on their books right now," he said. "You will definitely see it coming later.
"Because of how out of control the prices and lending practices got during the boom, and now because of high levels of unemployment, California is probably going to be at the center of the foreclosure crisis until it's over," Sharga said.
Read more: http://www.thesunnews.com/2010/07/15/1586960/foreclosures-in-us-reach-a-record.html#ixzz0tl5ofcKL
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
By ALEJANDRO LAZO - Los Angeles Times
LOS ANGELES -- The number of U.S. homes taken back by banks through foreclosure hit a record high in the second quarter, even as lenders delayed more homes from entering the process through short sales and loan modification efforts, according to data to be released Thursday.
This growing supply of lender-owned properties could set back the nation's housing recovery but probably won't sink it completely if the nation's employment situation doesn't deteriorate further and the economy begins to pick up steam, experts said. Sales of homes have faltered nationally in recent months with the expiration of government tax incentives for buyers.
U.S. bank repossessions increased 38 percent in the second quarter from the same period a year earlier for a record total of 269,952, according to Irvine, Calif., research firm RealtyTrac. That was also a jump of 5 percent from the previous quarter. If that pace continues through the year, the number of homes taken by banks is likely to top 1 million by the end of 2010, said Rick Sharga, RealtyTrac senior vice president.
More than 1 million American households are likely to lose their homes to foreclosure this year, as lenders work their way through a huge backlog of borrowers who have fallen behind on their loans.
Nearly 528,000 homes were taken over by lenders in the first six months of the year, a rate that is on track to eclipse the more than 900,000 homes repossessed in 2009, according to data released Thursday by RealtyTrac Inc., a foreclosure listing service.
"That would be unprecedented," said Rick Sharga, a senior vice president at RealtyTrac.
Millions of Americans are still likely to lose their homes in the coming years, but the foreclosure crisis is finally showing signs of subsiding.
The number of households facing foreclosure in April fell 2 percent from a year ago, the first annual decline in five years, RealtyTrac Inc. said Thursday.
But the data aren't all sunny. While the number of new delinquencies is dropping, the number of borrowers losing their homes is still rising. Banks seized a record 92,000 homes last month.
The number of U.S. households facing foreclosure in January increased 15 percent from the same month last year, and a surge in cash-strapped homeowners who've fallen behind on mortgages could be on the way.
More than 315,000 households received a foreclosure-related notice in January, RealtyTrac Inc. reported Thursday. That number is down nearly 10 percent from 349,000 in December.
In January, one in 409 homes was sent a filing, which includes default notices, scheduled foreclosure auctions and bank repossessions. Banks repossessed more than 87,000 homes last month, down 5 percent from December but still up 31 percent from January 2009.
Foreclosures are likely to be a part of the real estate market for several years, but opinions about distressed properties are shifting, according to a study released this week.
Realty Trac, a company that tracks foreclosures nationwide, teamed with Trulia Inc., a real estate website, to study foreclosure opinions in the United States.
The study, conducted for the companies by Harris Interactive, found that fewer potential home buyers would consider buying a foreclosure than last year and fewer survey takers had negative opinions about foreclosures.
Foreclosures increased in Horry and Georgetown counties in March, and officials say they don't expect to see a decline any time soon.
In March, foreclosures in Horry County were up 8percent from the same month last year and up 50 percent in Georgetown County, according to data released this week by Realty Trac, a company that tracks foreclosures across the United States.
There was a 129 percent jump in foreclosures in the first three months of the year in Georgetown when compared with the previous three months, and a 50 percent increase from the same months last year.
"It is almost a certainty that we will see over a million over the course of the year, and that would definitely be a record," he said. "It's serious, but it doesn't appear to be that these levels will crater the housing market if the economy at least stabilizes and we do start to see some job creation."
A total of 895,521 foreclosure notices were filed on U.S. properties during the second quarter, an increase of less than 1 percent from the same quarter a year earlier and a 4 percent decrease from the first quarter, according to RealtyTrac. Notices of default - the first stage of the foreclosure process - were down 19 percent from the same quarter a year earlier and 11 percent from the first quarter.
"What is happening is that the number of loans that are going into delinquency is abating, but the number of loans that are moving through the foreclosure process is rising," said Mark Zandi, chief economist for Moody's Economy.com. "This is because many loans got piled up in the foreclosure process as mortgage servicers tried to figure out all the various loan modification plans and policy efforts to mitigate foreclosure activity. Now, at this point, servicers are figuring out these programs and are starting to push loans through the process."
Because housing has stabilized and banks have improved their financial positions since the start of the financial crisis, regulators are pressing them to get rid of their troubled loans.
"There is growing pressure on the banks to get problem residential loans worked out one way or another," said Bert Ely, an independent banking consultant. "And the sense is that, in most markets, we are through the worst of it to the extent the economy improves at all."
In California, foreclosure filings totaled 192,422 in the second quarter, a 24 percent decrease from the same quarter a year earlier and an 11 percent drop from the first three months of the year. Notices of default were down 43 percent from a year earlier and 15 percent from the first three months of the year.
California also appears to be bucking the trend in bank seizures, with that number up only 1 percent at the end of the second quarter from the year-earlier quarter and down 1.5 percent from the first quarter. That relatively moderate increase is probably because banks are purposely postponing the auctions of homes to keep a flood of properties off the market, Sharga said, and will not last forever.
"California might be too saturated, in terms of what the banks are willing to put on their books right now," he said. "You will definitely see it coming later.
"Because of how out of control the prices and lending practices got during the boom, and now because of high levels of unemployment, California is probably going to be at the center of the foreclosure crisis until it's over," Sharga said.
Read more: http://www.thesunnews.com/2010/07/15/1586960/foreclosures-in-us-reach-a-record.html#ixzz0tl5ofcKL
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, July 15, 2010
Home Sellers Slashing Prices, While Banks Mow the Lawn
That heady buzz from the home buyer tax credit is now turning into a grinding headache, as home sellers realize their very temporary, government-induced catbird seat has now fallen back to earth.
As of July 1st, 24 percent of sellers on the market had cut their asking prices at least once, according to Trulia.com.
That's up 9 percent from the previous month and represents about $27 billion worth of vanished national home equity (or home equity hopes).
"The market is going to maintain a relatively flat trajectory, if not more like a saw tooth trajectory, for the near future, and meaningful recovery may not happen until some time in 2011, 2012," says Trulia's Heather Fernandez.
Shocking? Not so much.
We knew the price stabilization was largely due to increased buying activity on the low end from the home buyer tax credit. The issue now, front and center, is foreclosures. We've already seen a few reports, and I expect we'll see more, that show new foreclosures "stabilizing," while bank repossessions are increasing.
First of all, the stabilization is at such a high rate that it's clearly an unsustainable stabilization for the economic recovery. New foreclosure notices need to drop, not just bump around at their near-record highs. And frankly the bank repossession number is a much bigger deal, because that is going to translate into immediate inventory on the market.
Do banks hold on to foreclosure inventory?
Of course they do, but in Los Angeles at least, they're getting a big incentive to dump it fast. L.A. last week passed a new city ordinance that fines banks, servicers, whoever owns the foreclosed property, up to $100,000 for letting the property fall into disrepair. We've heard and seen plenty of stories about run-down, stripped homes littering the landscape, with their overgrown lawns and broken front fences standing as glaring examples of what is not recovering in the housing market.
I wouldn't be surprised if more big cities do the same, and I'd encourage them to do so.
Let's face it, banks don't want to be homeowners, and they certainly don't want to shell out even more of their dwindling cash on lawn services and handymen. Whatever incentives there are out there to turn these properties over to homeowners who can actually afford them are certainly welcome.
The trouble is that there appears to be a dangerous disconnect in the housing market right now: Housing starts are at an all-time low and yet the home vacancy rate is rising. The only way that can happen is if the number of households is shrinking more than we know. Add bank repossessed homes to that mix, and I'm guessing home prices will dip more than some are expecting.
CNBC On Wednesday July 14, 2010, 12:38 pm EDT
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
As of July 1st, 24 percent of sellers on the market had cut their asking prices at least once, according to Trulia.com.
That's up 9 percent from the previous month and represents about $27 billion worth of vanished national home equity (or home equity hopes).
"The market is going to maintain a relatively flat trajectory, if not more like a saw tooth trajectory, for the near future, and meaningful recovery may not happen until some time in 2011, 2012," says Trulia's Heather Fernandez.
Shocking? Not so much.
We knew the price stabilization was largely due to increased buying activity on the low end from the home buyer tax credit. The issue now, front and center, is foreclosures. We've already seen a few reports, and I expect we'll see more, that show new foreclosures "stabilizing," while bank repossessions are increasing.
First of all, the stabilization is at such a high rate that it's clearly an unsustainable stabilization for the economic recovery. New foreclosure notices need to drop, not just bump around at their near-record highs. And frankly the bank repossession number is a much bigger deal, because that is going to translate into immediate inventory on the market.
Do banks hold on to foreclosure inventory?
Of course they do, but in Los Angeles at least, they're getting a big incentive to dump it fast. L.A. last week passed a new city ordinance that fines banks, servicers, whoever owns the foreclosed property, up to $100,000 for letting the property fall into disrepair. We've heard and seen plenty of stories about run-down, stripped homes littering the landscape, with their overgrown lawns and broken front fences standing as glaring examples of what is not recovering in the housing market.
I wouldn't be surprised if more big cities do the same, and I'd encourage them to do so.
Let's face it, banks don't want to be homeowners, and they certainly don't want to shell out even more of their dwindling cash on lawn services and handymen. Whatever incentives there are out there to turn these properties over to homeowners who can actually afford them are certainly welcome.
The trouble is that there appears to be a dangerous disconnect in the housing market right now: Housing starts are at an all-time low and yet the home vacancy rate is rising. The only way that can happen is if the number of households is shrinking more than we know. Add bank repossessed homes to that mix, and I'm guessing home prices will dip more than some are expecting.
CNBC On Wednesday July 14, 2010, 12:38 pm EDT
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
Subscribe to:
Posts (Atom)