Les Christie, staff writer, On Thursday July 15, 2010, 9:30 am EDT
The foreclosure plague seems to have reached its peak and started to fade, but the recovery is still fragile.
The number of foreclosure filings of all types — including notices of delinquency, auction notices and repossessions — fell during the first six months of 2010, according to RealtyTrac, the online marketer of foreclosed properties.
There were 1,654,634 properties with foreclosure filings, a 5% decline compared with the previous six months. That equates to 1 out of every 78 homes being at risk.
Unfortunately, the pace of bank repossessions quickened, with nearly 270,000 homes lost to foreclosure during April, May and June, a 5% increase over the three winter months.
James Saccacio, CEO of RealtyTrac, called the report a “tale of two trends.”
He pointed out that the filings data showed improvement because fewer properties were entering the foreclosure process. Part of that is because lenders are now more committed to modifying defaulting mortgages or allowing homeowners to sell their homes for less than they owe.
At the same time, lenders have cleared many properties out of the foreclosure pipeline, finalizing repossession proceedings rather than allowing homes to sit in limbo.
However, there is still much inventory to move through the system and experts aren’t sure how bad it will be.
“While the foreclosure problem is being managed on the surface,” Saccacio said, “a massive number of distressed properties and underwater loans continue to sit just below the surface, threatening the fragile stability of the housing market.”
Hardest hit states
As they have for many months now, the “sand states” led the nation in foreclosures during the first half of the year. One in 17 Nevada households, or 64,429, received a filing. That is the highest rate of any state.
The number of California homes with filings came to more than 340,000, the highest total of any state.
Florida had more than 277,000 filings, or 1 for every 32 households; Arizona had more than 91,000, 1 in 30 homes.
Lenders repossessed 45,000 Calif. homes during the three months ended June 30, more than in any other state. Nevada, with a much smaller population, had nearly 11,000 repossessions, about twice the rate of the Golden State.
Going Once… Going Twice…
Home Auctions Quickly Get Foreclosed Homes Off the Market
Any seasoned salesperson can tell you that waiting for a buyer to make the first move is an ineffective marketing tactic, especially when pertaining to the real estate industry. Instead of sitting back and waiting for a sale to come their way, homeowners are utilizing alternative property marketing methods.
Over the last few years, real estate auctions have become a popular way to market everything from newly constructed condominiums in an over-built market, to single family homes that have been on the market for several months and are in danger of foreclosure. Real auctions not only produce plenty of buyer interest and traffic, they also attract serious buyers. Due to the connotation of the word “auction”, buyers rightfully assume they will find significantly discounted homes and great homebuyer bargains.
Before the Real Estate Auction Tips
Before you raise that auction paddle or settle on placing your property on the auction block, it is important know home auction basics. Below are a few auction tips and financial factors to consider when discerning whether or not home auctions are the solution to your buying and/or selling needs.
Both Buyers & Sellers Should Know the Rules
Is the auction you are overseeing or attending an Absolute Auction, Minimum Bid Auction or a Reserve Auction? It is important to know auction details and rules so you can be prepared to make an educated bid or a quick home sale.
Absolute Auctions are the most buyer-friendly. The absolute auction seller agrees to sell the home to the buyer with the highest bid, regardless of the final price. Since a sale is guaranteed, absolute auctions generate the most buyer excitement and participation.
Minimum Bid Auctions involve the seller agreeing to a minimum selling price, which is normally advertised before the auction. This not only reduces the sellers’ risk, but also provides more control over who is permitted to bid at the auction.
Unlike Absolute and Minimum Bid Auctions, Reserve Auctions do not result in an immediate sale. Instead, the seller has the right to accept or decline any bid within a specified period of time. Reserve Auctions are commonly used with court-ordered sales where a price must be sanctioned before closing.
Buyers, Get Pre-Qualified
Avoid buyer’s remorse by ensuring you are capable of taking on the financial responsibilities of a new home. I am dedicated to providing you with practical mortgage product information and loan financing tools to guide your search for a loan program that is appropriate for your situation.
Call me today to learn more about the additional costs and monthly mortgage payments that will accompany your new purchase; contact me today at 207-831-1903 to get pre-qualified for a loan that will fit your unique situation.
Buyers, Schedule a Post-Auction Meeting with Your Broker
Most auctions require you to gain approval for a loan within a specified escrow time-frame. Failure to get approved for a loan in a timely fashion can result in liquidated damages. Be sure you Seth Jacobs to meet after the auction so that you can obtain your loan within the seller’s brief time frame.
Working closely with Seth Jacobs will not only expedite your home buying and selling process, but it will also result in custom financial solutions designed to fit your unique lending needs.