| Copyright (c) 2009 Frank Patrick | | | | home sales are finally taking off ? which means prices |
| Foreclosure Filings Rise 32% Year-to-Year | | | | have hit the point where investors are actually anxious |
| REO properties will continue to make up a large part | | | | to get in on the available deals. That trend really caught |
| of the housing market for some time to come, judging | | | | fire in July - with California leading the way with REO |
| by the latest foreclosure and mortgage data. | | | | sales, just as they led the way nationwide with the |
| In July, foreclosures were up 7% from June ? and | | | | initial housing crash. |
| 32% from July of 2008. 360,000 homes were in some | | | | To cite one dramatic example, Stockton, the city with |
| stage of the repossession process and on their way | | | | the highest foreclosure rate in the country, saw its |
| to becoming REO listings. That?s one out of every | | | | home sales double in the second quarter ? and about |
| 355 homes in America ? and it marked the third month | | | | 40% of those sales were REO properties. In some |
| out of the last five that a new record was set. | | | | cases, there were actually bidding wars on REO |
| While the usual states led the foreclosure numbers ? | | | | homes, according to DataQuick Information Systems. |
| California, Nevada, Florida and Arizona ? there were | | | | This is great news for REO agents and brokers ? |
| also big jumps in states that hadn?t been experiencing | | | | house prices have finally fallen to a point where REO |
| big default rates ? states like Oregon, Minnesota and | | | | inventory is beginning to move in a big way. Ryan |
| Kansas. Experts say that?s because of the increasing | | | | Ratcliff, an economist at UCLA, believes that discounts |
| effect of the jobless numbers. | | | | of as much as 50 percent will continue well into 2010. |
| This brings us to mortgage delinquencies, which hit an | | | | The other good news is that there?s still plenty of |
| all-time high in the second quarter of this year. The | | | | REO inventory to come. Many foreclosure homes that |
| number of mortgage holders who were behind 60 | | | | haven?t been selling have actually been taken off the |
| days or more on their payments was up 65% from | | | | market and put up for rent. The result? A lot of vacant |
| the second quarter of 2008. Almost 6% of | | | | rental homes! Those will undoubtedly be put back on |
| homeowners nationwide are having trouble ? with | | | | the block ? and with buyers finally reentering the real |
| Nevada having an astounding 13% delinquency rate. | | | | estate market in search of deals, they will finally have |
| The good news? As we reported last month, REO | | | | a shot at selling. |