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Posts Tagged ‘foreclosure’

CoreLogic: 11% of Fla. mortgages face foreclosure

In real estate on October 31, 2012 at 6:21 pm

IRVINE, Calif. – Oct. 31, 2012 – CoreLogic released its National Foreclosure Report for September with data on completed U.S. foreclosures and the overall foreclosure inventory.

According to the report, Florida had 91,898 completed foreclosures over the 12 months ending in August, or 11.8 percent of the U.S.’s 781,898 foreclosures.

Florida’s foreclosure inventory – the total number of homes in some stage of the foreclosure process compared to all homes with a mortgage – topped the nation at 11 percent. The national average was 3.2 percent. Florida’s foreclosure inventory fell more than the national average, however, down 1.1 percent for the year. Nationally, the rate dropped only 0.2 percent.

The five states with the highest foreclosure inventory as a percentage of all mortgaged homes after Florida were: New Jersey (7.3 percent), New York (5.3 percent), Illinois (5.2 percent) and Nevada (4.9 percent).

CoreLogic also focused on 25 city areas in its September report, two of which are in Florida:

• The Tampa-St. Petersburg-Clearwater area had 13,094 foreclosures for the year (ending in August) and 11.3 percent of homes with a mortgage in some stage of the foreclosure process. The foreclosure inventory was down 0.8 percent year-to-year.

• The Orlando-Kissimmee-Sanford area had 11.1 percent of its homes in the foreclosure inventory. It had 11,463 completed foreclosures over the past year (ending in August), though the inventory dropped 1.4 percent year-to-year.

“The continuing downward trend in foreclosures along with a gradual clearing of the shadow inventory are signs of stabilization and improvement in the housing market,” says Anand Nallathambi, president and CEO of CoreLogic.

“Homes lost to foreclosure in September 2012 are down 50 percent since the peak month in September 2010 and 22 percent less than the beginning of the year,” adds Mark Fleming, chief economist for CoreLogic. “While there is significant progress to be made before returning to pre-crisis levels, the trend is in the right direction as short sales, up 27 percent year-over-year in August, continue to gain popularity.”

Florida’s high foreclosure inventory results, in part, from its status as a judicial state where foreclosures must go through the court system, which clears foreclosures from inventory at a slower pace.

Reprinted by Permission: © 2012 Florida Realtors®

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Florida foreclosure facts

In real estate on February 25, 2011 at 12:12 am

TALLAHASSEE, Fla. – Feb 24, 2011 – One media story says foreclosures are up – the next story says foreclosures are down. A report released by Florida Realtors clears up the confusion by explaining the three different levels of foreclosure activity that analysts consider, and listing the state numbers for each during 2010.

“The Florida Foreclosure Report” found general confusion about the definition of foreclosure. One group might focus on the number of homeowners who received at least one notice of foreclosure and consider that “the number of homes in foreclosure.” A second group might focus only on the number of homes actually taken over by a bank. But while the number of foreclosure notices could be rising, the number of homes actually taken over by a bank could be declining.

The report outlines three levels of foreclosure, which added together are the “foreclosure rate”:

Lis Pendens: Homes under Lis Pendens have received at least one foreclosure notice.

• Notice of foreclosure sale: Homes that received a notice have been scheduled for a foreclosure sale, but the homeowner may still find a way to keep the house.

Real estate owned (REO): Bank-owned homes post-foreclosure.

In 2010, only 2,800 Florida properties made it through the foreclosure process to become REOs. Of the rest, 180,402 were Lis Pendens and 140,105 received a notice of foreclosure sale. However, the total number of homes in some phase of foreclosure – all three categories – comes out to 323,307 Florida households.

Other report highlights:

• In 2010, 1 in every 29 Florida housing units were in some phase of foreclosure. In 2008, it was only 1 in every 54.

• The top Florida counties for high foreclosure rates are, in order: Lee, Miami-Dade, Osceola, Charlotte and Orange.

• The Florida counties for lowest foreclosure rates are, from least up: Taylor, Union, Jefferson, Lafayette and Liberty.

The complete report is posted online on Florida Realtors website under Legislative Research.

Reprinted by Permission: © 2011 Florida Realtors®

 

Myth #1: There are No Cash Buyers; Myth #2: There is No Lending

In real estate on February 16, 2011 at 12:01 pm

I hear this from many buyers and non-believers. Unfortunately for them, there are cash buyers out there – and plenty, but there are also lenders lending.

According to the MLS (Multiple Listing Service), 2,076 residential units (single family homes, condos, townhomes and villas), closed in January, 2011. Of these, 582 were non-distressed properties, 433 were short sales (pre-foreclosures) and 1052 were REO (foreclosed).

Among all properties sold (2,076), 1370 properties sold for cash. Among these, 306 were non-distressed, 791 were REO properties and 267 were short sales.

The remaining 706 units closed in January, 2011, closed with some form of financing. The most common non-cash purchasing methods used by buyers these days were conventional financing and FHA, signaling that, contrary to popular belief, lending is NOT frozen – but buyer and property must both qualify.

There are 3 types of sellers these days. Which one is the top performer?

In real estate on February 16, 2011 at 11:13 am

These days, there are 3 types of sellers under two major categories: Distressed Sellers and Non-Distressed Sellers.

The first major category are the Distressed Sellers which include two distinctly different types of sellers. One, is all lenders dumping acquired inventory assets (well…these are really a liability to them that are not producing for them), via foreclosure auction. These are what are known as REO property or Real Estate Owned (once bought back at auction by the lender).

The second type of Distressed Seller is John and Jane Distressed Seller who for whatever reason, may now be facing foreclosure and are only able to get out from under this cloud by selling during the pre-foreclosure stage via the Short Sale process.

The second major category of seller is the Non-Distressed seller. This does not mean that if they were to sell at true market value (today’s true market value), they wouldn’t be selling for less than they owe and be considered Distressed Sellers like John and Jane above. These sellers are often fishing to find a buyer though many times, you also find reasonable sellers in this category looking to get what they can today.

The type of buyer that overpays and buys one of these non-distressed properties are mostly those looking to completely avoid the hassles of buying distressed properties and are cash buyers with a long-term outlook to owning these.

January, 2011 saw drops in New Listings, Total Available Inventory and Closed REO Sales from December, 2010. However, every category mentioned before is sharply up from January, 2010 and comparing Q1/2009 to Q1/2010 as demonstrated by the chart below.

Short Sales have performed quite differently, signaling that lenders are STILL not looking to help homeowners by helping streamline the short sale process. Although Short Sales typically sell for more, maintain a more stable market by keeping families in their home (rather than creating vacancies), cost less in legal fees, help family and neighborhood morale, have a potential for increased goodwill towards the institution for helping rather than foreclosing, help current owners become more responsible owners again in as little as 2-3 years when they’re able to buy again rather than 7-10 years or more because of the foreclosure mark in their credit and other factors, neither the government nor institutions do enough still to encourage short sales over foreclosures. This sentiment is reflected in the numbers seen below.

In spite of the above, we can see a surge of 37.6% in Pending Short Sales from December, 2010 to January, 2011. Year-over-Year and Q2Q however, the numbers are not as impressive as those in the REO category.

The biggest underperformer among the 3 seller types are the Non-Distressed Sellers, as seen below.

Incredibly, this category has the largest inventory of available properties for sale among all seller types in the MLS (Multiple Listing Service) and yet, the lowest performance of Pending and Closed Sales. The chances of sellers in this category to move from the “I wish to sell” list to the “I Sold” list are almost like the chances of winning the lottery and a reflection of the disconnect between these sellers and today’s reality – even after 3+ years of this!

In short, Buyers ARE SMART and have online access to information that makes them smart. Also, professionals in the business are able to provide them the same data sellers see during the Listing Presentation. Somehow, they both (buyers and sellers), see and hear a different message whereby, sellers still ‘think; things aren’t as bad as the agent is showing them and buyers appear convinced that there are (and are actively pursuing), those deals ‘on sale’.

After all, why pay retail when you can buy wholesale?!

Sellers who do not need to sell and refuse to understand this, must be prepared to have their property just sit on the market for a long time.

Months of Inventory based on Closed Sales tell a very telling story when it comes to which market is performing. This is a measure of how long it is taking a property to go from Listing to Closed in months. Below, is the Months of Inventory based on Closed Sales for each as follows:

Non-Distressed Sellers

Short Sales (pre-foreclosures)

REO (lender owned / foreclosed)

While it takes about 2-months to list and close an REO, about 18-months to list and close a Short Sale (mostly because the process is not yet streamlined), it is taking about 2 years to list and close non-distressed property according to January, 2011’s numbers.

Thus the phrase “BUYER’S MARKET” – in which we’re clearly, still in it.

Disclaimer: All charts are created from reports published February 2011, based on data available at the end of January 2011. This representation is based in whole or in part on data supplied by Realtor Association of Greater Miami and the Beaches, Realtor Association of Miami-Dade County, Realtor Association of Greater Fort Lauderdale and Northwestern Dade Association of Realtors. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market.

In real estate on January 29, 2011 at 3:19 pm

Renters: When you find a property you want to rent, verify that it is not in foreclosure before making any deposits or signing a lease.

New Federal Law To Protect Renters: Protecting Tenants in Foreclosure Act

The Protecting Tenants in Foreclosure Act was signed into national law on May 20, 2009, providing measures to help renters in foreclosed properties:

  • All tenants will have a minimum 90-day notice before eviction due to foreclosure.
  • A new owner who takes over a residential rental property through foreclosure must honor existing leases until the end of lease term unless the new owner will occupy the property themselves. If so, the tenant must have 90-day notice to move before the new owner can take possession and move in.
  • These new provisions also cover Section 8 (HCVP) tenants.

Exceptions and conditions apply. For more information, download a sample letter for a non-Section 8 landlord and an explanation for tenants about this new legislation.

Find more documents and important information on the website of the National Low Income Housing Coalition at www.nlihc.org Opens new browser window or by phone at 202.662.1530.

Be cautious when renting. Always research properties thoroughly, and never provide a security deposit or any money without ensuring that the property you are about to rent is legitimate and not in foreclosure or other threatened status.

Source: Miami-Dade County Housing Central

Is Foreclosure Inevitable for you? Now you can stay in your own home…legally!

In real estate on January 29, 2011 at 2:46 pm

Most lenders who eventually foreclose on a borrower and take a home back do not want the responsibility nor the potential liabilities of ownership. However, most lenders are not Fannie Mae (FNMA).

Fannie Mae has created a program called the “Deed-For-Lease Program” or D4L. Qualified occupants (homeowner-borrowers or tenants), “…must have the ability to pay market rent (not to exceed 31 percent of his or her monthly gross income)”, among other things. However, the ability to stay in one’s home can be a wonderful option for some.

To find out more, review the Deed-For-Lease Frequently Asked Questions (D4L FAQs) page HERE.

Though about 70% of folk who lose their home to foreclosure find themselves in this situation because they fail to seek help or equally tragic, they seek help from the wrong people (non-professionals who may also be incompetent or worse), foreclosure may be inevitable for some.

Regardless, there are solutions available and speaking with the right professional can make a world of difference in whether you lose your home to foreclosure, save if from foreclosure and the long-term damaging effects of it or at least, if you’re going to have to move and rent elsewhere, now you may be able to keep your familiar roof over your head as a tenant.

Staying in a property may be most important f0r those with special needs, who have young children, etc. Get the facts. Contact me today and I will send you a link with more information about this program that can help you stay in your home and minimize the traumatic consequences of foreclosure.

MIAMI-DADE: INVESTORS WIN. RENTING MAY BE YOUR ONLY CHOICE – BUT NOT MAKE THE MOST SENSE FOR YOU.

In real estate on January 18, 2011 at 12:52 pm

According to an article published in today’s Miami Herald, the rental market is getting stronger.

Surely, with all the foreclosures taking place (23,000 in 2010 in Miami-Dade according to a recent article from Condo Vultures), and 34,400 foreclosure filings in 2010 according to Miami-Dade county records), these owners are unable to do anything other than rent these days and for a long time coming.

In fact, each foreclosure actually slows down our recovery since none of these previous owners will be likely able to buy for several years. That’s some 23,000 in 2010 alone according to the Condo Vultures report. Instead, lenders should be looking to facilitate short sales since these sellers would be able to qualify for a mortgage and buy again possibly in as few as 2 or 3 years, helping our recovery, stabilizes prices faster and costs everyone less.

Add the urbanizing young professionals emancipating, divorcing or divorced couples and other demand forces to the equation in addition to the fact that few if any new units are coming to market and others are being left vacant, converted to hotel or other use, and you have a perfect storm for investors to gain cash flow opportunities and net worth as property values improve.

The decision to buy or rent is often a difficult one. On the one hand, you get the guy named in the Miami Herald’s article whose rent went up 29% and wonders what in the world is the landlord thinking. After all, there are so many vacant properties out there, right?

The problem is that, lenders are keeping these vacant, foreclosed properties vacant, which is keeping the availability (supply) of rental units low. I mean, if lenders foreclosed 23,000 units in 2010, that means that there are 23,000 vacant properties which are neither occupied by owners or renters. In fact, this also means that there are 23,000 families now occupying that many rental properties somewhere else in town. This is what has kept many builders who have unsold inventory afloat, and paying their loans.

Buyers on the other hand have the opportunity to buy repossessed properties but, unless they are packing CASH…they’re out of the equation. Well over 80% of properties these days are selling for cash. Among the distressed properties sold (almost 72% of all distressed properties sold in December, 2010 were foreclosed properties – http://wp.me/p9Ggo-e4), this number is much higher and probably closer to more than 90% sell for cash.

This means that many would-be buyers who are unable to pay all cash and still have funds for repairs, etc will have to continue renting – at whatever the landlords want to charge these days and probably…for a few years to come.

Of course, builders are probably salivating and closely watching the time they’ll be able to come back and build for this under $200,000 price-point buyer (this is the most coveted and sought after market segment by investors and first-time buyers alike).

Just the same, don’t guess or take someone else’s word for it. If you are in the market to buy or you are tired of renting and watching your rents go up year after year, visit http://tinyurl.com/ShouldIRentOrBuy, enter your own numbers and see if buying instead would make better sense for YOU.

Typically, if you intend to stay in the property for AT LEAST 5 to 7 years or more, you are likely to do better buying. Still…do the math yourself using the above link.

Remember though that, lending is still shaky and you are likely to need an above average score, a 20-30% for down payment and closing costs (unless you are able to get into a Freddie Mac, Fannie Mae or FHA program – which there are still few properties that qualify for these), must be able to show all income sources and speaking with a professional Mortgage Broker or knowledgeable Bank Lending Officer BEFORE you start shopping, is critical in this market.

Investors and buyers with cash or access to cash for property acquisition and repairs, etc are going to be the new rich kids in town. These folks are buying at up to 65% discount over today’s Median Closed Prices (again, refer to my earlier post: http://wp.me/p9Ggo-e4).

The Average Closed Price* for REO’s in December, 2010 was $121,000 000 (down 4.9% from November, 2010 and down 7.5% from December, 2009), compared to Miami-Dade’s overall Average Closed Price of $271,000 (up 12.4% from 11/2010 and down 5.2% from 12/2009), this is a potential discount of almost 45% by buying REOs over others.

The Median Closed Price* for REOs in December, 2010 was $84,000 000 (up 7.7% from November, 2010 but down 11.6% from December, 2009), compared to Miami-Dade’s overall Median Closed Price of $130,000 which was down 3.7% from 11/2010 and down 18.7% from 12/2009.. This means that, as of the things are now, buying an REO may provide an additional 64.6% discount over non-REO purchases based on the Median Closed Price levels.

Therefore, cash buyers and any owner-occupant able to pick up one of these deals (especially from HUD, Freddie Mac or Fannie Mae), will be the biggest winners in 2011 – and the opportunity window is closing fast.

* All reports are published January 2011, based on data available at the end of December 2010. This representation is based in whole or in part on data supplied by Realtor Association of Greater Miami and the Beaches, Realtor Association of Miami-Dade County, Realtor Association of Greater Fort Lauderdale and Northwestern Dade Association of Realtors. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market.

Miami-Dade: 71.9% of all Distressed Properties Sold in December, 2010 were REOs

In real estate on January 17, 2011 at 2:07 pm

In December, 2010, 64.8% of all properties Sold (in the MLS), were distressed sales (which includes Short Sales and REOs) – http://wp.me/p9Ggo-dJ

Among these, REOs Sold (closed), accounted for approximately 71.89% of all distressed properties sold in December, 2010. This is up 27.7% from November/2010 and up a healthy 52.1% from 12/09.

Unfortunately, the number of REO properties for sale and the number of new REO coming to market are both also up significantly.

December, 2010 saw a 37.1% increase over November in the number of new REO listings, also increasing the total number of REO units for sale to 2361, up 22.6% from November.

Moreover, the number of new REO listings for December, 2010 was up 84.8% from December, 2009, causing the total number of REO properties available for sale to go up by a whopping 133.3% from December, 2009.

I’m not sure about you but…if the so called “shadow inventory” is in a way, any kind of multiple of these numbers…I will venture to guess that we will be at this game for a looooonnnng time.

This market segment is so healthy that, at the current pace, with Pending Transactions (a leading indicator of future closed inventory), clipping at a healthy 21.5% from November, 2010 and up 117.3% from December, 2009, this makes this market segment shine compared to non-distressed sales or Short Sales.

In fact, the Months of Inventory based on Closed sales for December, 2010 was of 2.4 (meaning these homes are not sitting on the market long) and a very healthy Absorption Rate based on Closed Sales of 41.9 units.

Here is the challenge for those thinking they can buy an REO (foreclosed) property, if you are not able to or you are not teamed up with a professional that can help you make a snap decision about whether the property you are looking at meets your buying criteria for the level of repairs required, etc and, if you do not have cash or access to cash at the snap of your fingers, this market segment is largely, not for you.

If you are John or Jane Buyer, looking to buy your first home, these homes, by and large, need repairs and therefore, unless you are paying cash and have enough reserve funds to make all necessary repairs, it is quite atypical that you will be able to get any form of financing on any of these properties.

The only “possible” exception are, Fannie Mae or Freddie Mac REO properties that qualify for their Home Steps or Home Path lending programs. These programs typically allow owner-occupant buyers to make offers during the first 15 days the property is on the market and bars investors and any other non-owner occupants from submitting offers during this time frame. Only after the 16th day can non-owner occupant offers be considered. In addition, owner-occupants may apply for a 3% loan from these institutions and get a loan similar to FHA.

Sadly, over 90% of all REO properties sold, sell for cash since, most first-time buyers who are the bulk of this market segment priced under $150,000, do not have the means to pay cash for these properties and still have enough funds set aside for all required repairs and/or lien/violation cures and investors do. Obviously, investors pursue these because these afford them the best possibility for renting them with a positive cash-flow and/or (eventually), sell them over time to end-user buyers like John or Jane Buyer.

In addition, the Average Closed Price for REO’s in December, 2010 was $121,000 000 (down 4.9% from November, 2010 and down 7.5% from December, 2009), compared to Miami-Dade’s overall Average Closed Price of $271,000 (up 12.4% from 11/2010 and down 5.2% from 12/2009), this is a potential discount of almost 45% by buying REOs over others.

The Median Closed Price for REOs in December, 2010 was $84,000 000 (up 7.7% from November, 2010 but down 11.6% from December, 2009), compared to Miami-Dade’s overall Median Closed Price of $130,000 which was down 3.7% from 11/2010 and down 18.7% from 12/2009.. This means that, as of the things are now, buying an REO may provide an additional 64.6% discount over non-REO purchases based on the Median Closed Price levels.

Unfortunately for non-investors buyers who do not have the discretionary cash or access to it, is left looking at still dreaded Short Sale (pre-foreclosure), properties, which continue to have a very long and frustrating purchase process.

Even worse is the condo market which, more often than not, leaves buyers unable to get any type of financing in many condo buildings unless assisted by some government program since, these special financing programs are few and difficult to access.

* All reports are published January 2011, based on data available at the end of December 2010. This representation is based in whole or in part on data supplied by Realtor Association of Greater Miami and the Beaches, Realtor Association of Miami-Dade County, Realtor Association of Greater Fort Lauderdale and Northwestern Dade Association of Realtors. Neither the Board or its MLS guarantees or is in any way responsible for its accuracy. Data maintained by the Board or its MLS may not reflect all real estate activity in the market.

South Florida Foreclosure Filings Drop 63% In November

In real estate on December 8, 2010 at 8:39 pm

Lenders filed less than 2,600 foreclosure filings against properties in the tricounty South Florida region in November, representing a 63 percent decrease compared to 7,000 actions in the same month in 2009, according to a new report from CondoVultures.com.

The dramatic decrease in foreclosure filings in November in Miami-Dade, Broward, and Palm Beach counties follows a 54 percent decrease in the number of notices of defaults initiated a month earlier in October 2010, according to the report based on the Condo Vultures® Foreclosure Database™.

“This is a clear sign that the administrative irregularities related to the national foreclosure freeze are impacting the South Florida real estate market,” said Peter Zalewski, a principal with the Bal Harbour, Fla.-based real estate consultancy Condo Vultures® LLC. “The latest statistics show that lenders have slowed their efforts to repossess South Florida properties from borrowers who are in default on their mortgages.”

Read More …

Information on new initiatives to help foreclosures, help you avoid scams and more

In real estate on November 22, 2010 at 3:58 pm

WASHINGTON – Nov. 22, 2010 – The Department of Justice’s Access to Justice Initiative and Vice President Joe Biden announced a series of steps on Friday that the government will take to help middle class and low-income families secure their legal rights in a foreclosure. Those steps includes strengthening of foreclosure mediation programs, helping veterans secure the legal help they need, and making it easier for workers to find a qualified attorney when they believe their rights have been violated.

The announcement is the culmination of work between the Department of Justice’s (DOJ) Access to Justice Initiative and federal agencies like the Department of Labor (DOL), the Department of Housing and Urban Development (HUD), and the Department of Veterans Affairs (VA), and others.

“Many people’s lives can be improved without major new investments, and in fact with real savings, if we simply help them access the legal rights and benefits that are theirs,” says DOJ Senior Counselor for Access to Justice Larry Tribe.

Foreclosure mediation programs

DOJ’s Access to Justice Initiative and HUD issued a joint report identifying emerging strategies for effective foreclosure mediation programs. To assist jurisdictions developing or expanding mediation programs, the report describes several features that help boost a program’s effectiveness. The report also lists existing foreclosure mediation programs that are willing to help other programs throughout the nation. View the report here: http://www.justice.gov/atj/effective-mediation-prog-strategies.pdf

HUD also announced a new training webinar that will highlight strategies and resources for avoiding foreclosure. The training – aimed at a wide variety of audiences including homeowners, housing counselors, pro bono attorneys and mediators – will include topics such as accessing housing counseling resources, finding state-specific foreclosure prevention resources, avoiding foreclosure rescue scams, and understanding federal foreclosure prevention programs.

HUD also provided guidance on the use of Community Development Block Grant and Neighborhood Stabilization Funds for housing counseling, a resource that can increase the effectiveness of foreclosure mediation programs. View the guidance here: http://www.hud.gov/offices/cpd/communitydevelopment/programs/pdf/housing_counseling.pdf

In addition to these efforts, NeighborWorks, a national non-profit created by Congress and funded by Congressional appropriations, will debut a foreclosure mediation workshop at the NeighborWorks Training Institute in December. More than 2,000 counselors and other nonprofit professionals are expected to attend the Training Institute. NeighborWorks is one of the largest funders of foreclosure-mitigation counseling in the nation, and is the administrator of the National Foreclosure Mitigation Counseling program.

Finally, the Federal Trade Commission announced a new rule and several enforcement actions to protect vulnerable homeowners from mortgage rescue fraud. View the FTC’s press release here: http://www.ftc.gov/opa/2010/11/mars.shtm

More information about the Department of Justice’s Access to Justice Initiative can be found at: www.justice.gov/access.

Reprinted by Permission: © 2010 Florida Realtors®

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