Susan Deierling, Assoc. Broker
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Realty Executives Northern Arizona
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According to data from RealtyTrac, a national foreclosure-tracking firm, the number of foreclosure filings increased 3 percent in October as compared to September 2012, climbing to 186,455 U.S. properties.
RealtyTrac defines a “foreclosure filing” as any foreclosure-related action including a Notice of Default, a Scheduled Auction, or a Bank Repossession. On average, 1 in every 706 U.S. homes had a foreclosure filing during the month of October.
For the 24th consecutive month, the number of bank repossessions fell, down less than 1% from the previous month and down 21% from October 2011. Bank repossessions dropped in 37 states, plus the District of Columbia, indicating that banks are seeking alternatives to foreclosure.
Distressed home sales, which include foreclosures and short sales, represented 23% of sales in the second quarter of 2012, down from 30% a year ago, according to the National Association of REALTORS®.
Florida again posted the top foreclosure rate nationwide.
One in every 312 Florida housing units had some sort of foreclosure filing in October as foreclosure starts moved to a 12-month high. Monthly filings increased 2% from last month.
In Nevada, the monthly increase was larger, rising 41% month-over-month, lifting it from the fifth-highest rate in September 2012, to the second-highest in October 2012.
Third-ranked Illinois saw a 6% increase in foreclosure filings over September 2012. California and Arizona rounded out the top five.
Hurricane Sandy made an impact on the foreclosure market, too, with a foreclosure moratorium being put into effect in the states most affected such as New Jersey, New York, and Connecticut.
For Cornville home buyers planning to venture into the home foreclosure market, there are well-priced homes for sale. However, understand that a foreclosure property is often sold “as is,” and that you may not be allowed into the property prior to the sale to inspect for damage. Home may have termites, been gutted by previous tenants or owners, or be filled with lead paint or asbestos.
For this reason, it’s a good idea to engage an experienced real estate professional when buying foreclosure properties. Real estate agents can guide you through the foreclosure process and give advice regarding contracts and home inspections.
The national market for foreclosed homes remains strong.
According to foreclosure data firm RealtyTrac, foreclosure activity increased 1 percent in August as compared to the month prior, climbing to just above 193,500 units nationwide.
1 in every 681 U.S. households received some form of foreclosure filing last month where a “foreclosure filing” is any one of the following foreclosure-related events : A default notice on a home; a scheduled auction for a home; or, a bank repossession of a home.
Default notices climbed in August which indicates that more U.S. homeowners are falling behind on payments.
However, for the 22nd consecutive month, the number of bank repossessions fell. This suggests that lenders are reaching alternative outcomes to foreclosure more frequently, and with more success, reducing the number of homes for sale nationwide.
Fewer homes for sale is one reason why U.S. home prices have been rising.
Like everything in real estate, though, foreclosures are a local event. In August, just six states accounted for more than half of the country’s bank repossessions. Those six states — California, Florida, Georgia, Illinois, Michigan and Arizona — account for less than 31% of the U.S. population.
Clearly, foreclosures remain concentrated. However, bank-owned homes can still make for “good deals” across all 50 states. This is because foreclosed homes are typically sold at steep discounts versus comparable, non-distressed homes.
Just be sure to do your foreclosure research first.
Buying a home in foreclosure is different from buying a home not in foreclosure. The contract and negotiation phases are different, and foreclosed homes are often sold as-is.
“As-is” is real estate-speak for “this home may be defective and/or uninhabitable”.
Therefore, if you plan to buy foreclosure, talk with a real estate professional first. You can learn a lot about a foreclosure by doing research online. However, when it comes time to write a contract, you’ll want to have an expert on your home-buying team.
Foreclosure filings fell 19 percent last month versus one year ago, says foreclosure-tracking firm RealtyTrac. It’s yet one more signal that the U.S. housing market may have already climbed off its bottom.
According to RealtyTrac, a “foreclosure filing” is any one of the following foreclosure-related events : (1) A default notice on a home; (2) A scheduled auction for a home; or, (3) A bank repossession of a home.
In looking at the January 2012 figures :
- Default Notices were down 22% from January 2011
- Scheduled Auctions were down 19% from January 2011
- Bank Repossessions were down 15% from January 2011
On a monthly basis, however, the numbers weren’t so promising.
Default notices and scheduled auctions were mostly unchanged, but bank repossessions rose 8 percent. The rise in bank repossessions is likely because 2010’s robo-signing controversy has been rectified at the state and lender level.
This trend toward more bank-owned homes is expected to continue through 2012.
As in most months, January’s foreclosure activity was geographically concentrated. Nevada led the nation in Foreclosures Per Capita, followed closely by California. 13 states fared worse than the national average of 1 foreclosure per 624 households. 37 fared better.
The difference in foreclosure frequency among the two groupings was stark :
- Top 13 Foreclosure States : 1 foreclosure per 435 households, on average
- Bottom 37 Foreclosure States : 1 foreclosure per 5,101 households, on average
North Dakota had January’s lowest foreclosure rate nationwide. Just 1 in 63,500 homes was in some form of foreclosure in North Dakota last month.
As a first-time or seasoned buyer in Cornville , foreclosed homes can be enticing. They’re plentiful and cheap. However, just because a foreclosed home can be bought for a “steal”, that doesn’t mean it’s worth buying. The process of buying a foreclosed homes is different from the process of buying a non-foreclosed home.
The contract-and-negotiation process may be different with a foreclosed property, and foreclosed homes are often sold “as-is”. This means the home you buy at auction could be run-down and defective to the point where it’s uninhabitable.
If you plan to buy a foreclosed home, therefore, have a real estate professional on your side. The internet can teach you much about how the Arizona housing market works, but when it comes to writing contracts, you’ll want an experienced agent on your side.