REOs comprise nearly 20% of homes on market
RealtyTrac says foreclosure inventory now tops 750,000
By Inman News, Thursday, August 14, 2008.Nearly one in five homes for sale in the United States are properties repossessed by lenders, data aggregator RealtyTrac reported today, as foreclosure-related filings rose 8 percent from June to July, and 55 percent from a year ago.
Foreclosure-related filings -- which include default notices, auction sale notices and bank repossessions -- rose to 272,171 in July, or one filing for every 464 U.S. homes.
Although not all homes subjected to foreclosure filings are ultimately repossessed by lenders, bank repossessions were the fastest-growing segment of foreclosure filings, growing 184 percent from a year ago, to 77,295.
RealtyTrac said it now has more than 750,000 properties in its active real-estate-owned database, which represents 17 percent of the inventory of existing homes for sale in June, as reported by the National Association of Realtors.
The rate of foreclosure-related filings was highest in Nevada, California and Florida. In Nevada, one in every 106 households subject to some type of filing during July -- a 15 percent increase from June and up 97 percent from a year ago. One third of the state's 10,060 foreclosure-related filings were bank repossessions.
California, Florida and Ohio led the nation in terms of the raw number foreclosure-related filings, with California seeing a 5 percent increase from June to July and an 85 percent increase from a year ago. Of the state's 72,285 foreclosure-related filings, 23,406 were bank repossessions.
Three of the four metropolitan areas with the highest rate of foreclosure-related filings were in California: Merced, Stockton and Modesto. The Cape Coral-Fort Myers, Fla., area had the highest rate of foreclosure-related filings in the nation -- one in 64 households, RealtyTrac said.
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Submitted by Lenn Harley on August 14, 2008 - 12:18pm.
The downward pressure on home prices due to foreclosure sales will have a dramatic impact on affordability for home buyers.
First time home buyers will be able to find wonderful homes in their qualifying price range. That is, of course, assuming that they will qualify for the ever tightening mortgage availability.
Move up buyers on the other hand will be stuck in their existing homes for years until the price gains resume or they rent.
I believe that we'll see a dramatic change in the staffing of real estate offices throughout the country. Selling homes averaging $400,000 for a few years is one thing. Trying to maintain the same income with homes averaging $250,000 certainly changes the job description.
We should see a serious reduction in the number of REALTORS.
Lenn Harley
Broker
Homefinders.com
http://www.homefinders.com
Submitted by Michael LittleBig on August 15, 2008 - 7:16am.
Those Bankers that in conducting their unethical, unprofessional and incompetent lending activities have not only brought this problem on themselves but have shared it with the entire world in one fashion or another.The Congress which includes the rest of the government since Congress acts as an oversight has watched this crisis unfold and been lethargic in any response.
As I read, there are 2.5 million foreclosures completed or in process with a 2008 year end projection of 4 million and a 2009 year end projected of 6 million.So if the REO housing stock on the market is considered high now,it would appear that it will only get worse.
If you do the research you will find that these banks have been arrogant in their attitude towards the homeowner that is or had difficulty in making their payments.I have read many articles where in many instances states have asked the bankers to please talk with the borrowers.The bankers operate on the "Lynch Mob Theory". Foreclose the mortgage and hang the borrower. The borrower has no redress in the federal regulatory system and no redress financially in the legal system.Since this government refuses to stop protecting the wealthy and powerful banks there will be no change. Tranlsated there will be a lot more REO's on the market for the next several years. These federal mortgage bankers operate their home loan lending activity with absolute impunity. Future home borrowers should take notice of what is happening
today,since Congress has not set new regulatory reuiquirements. Thats means more of the same in the future with the next crisis that will be bigger and better.
MLB