Are foreclosures on their way out?
GD Star Rating
loading...
loading...
GD Star Rating
loading...
loading...
Foreclosure home sales dropped significantly in the third quarter of 2012 (3Q 2012). The number of real estate owned property (REO) resales experienced an equally dramatic drop from the first quarter. Notice of default (NOD) filings decreased as well.
REO resales are down
23,000 REO resales took place in the 3Q 2012. That is:
- one-fifth of all California resales;
- down 32% from the prior quarter; and
- down 38% from one year earlier.
End of free preview
The rest of this content is only available to first tuesday Members. If you are a current first tuesday Member, please login above.
Not a current Member? For only $29.50, our Annual Membership includes access to:- the first tuesday journal;
- over 350 first tuesday real estate forms;
- over 35 FARM letters; and
- a 16-book reference library and more!
To sign up, visit firsttuesday.us!
GD Star Rating
loading...GD Star Rating
loading...About The Author
Carrie B. Reyes
is lead writer in charge of the Real Estate Practice and Due Diligence and Disclosures books.
Latest CommentsLeave a Reply
No
loading...
Low foreclosures, bad news for realtors that sold only REO. Means mortgage Refi is back.2 years of making new money. but as for the negative equity in homes that did modifications with low rate and deferring the negative equity as balloon payment in 5 years hoping that the price of homes will reach the peak as it was in 2005.
I think that the government will implement new laws forcing banks to comply and forgive that balance, and if not then its another story.
loading...
Foreclosures are down because the government is involved and short sales have taken over the market. There are still plenty of distressed properties out there, not the shadow inventory, I don’t believe it exist in the numbers the powers that be want you to think. I’m talking about people who are still living in their homes.
If anyone thinks home prices will increase to 2005 levels, I have some beach front property in Montana I want to sell them. The only thing that is going to make prices go up that much is the same thing that got them there in the first place…sub-prime loans.
loading...
Ed is mistaken!
It is a fact that prices will someday increase to the levels they were in 2005. Consider this; before sub-prime mortgages real estate appreciated ( due to inflation) 100% every 10 years (between 1970 and 2000). Sub-prime mortgages caused real estate to double in price in 5 years from 2000 to 2005. Now this has been corrected.
Real estate prices will get back to the 2005 levels in 10 years from now.
loading...
Is there a program for forclosure casualties to purchase a home in the near future?
loading...
ed is most certainly NOT mistaken. the return to underwriting has removed the entire ship of fools that were the trainloads of buyers that couldn’t buy lunch without a cosigner. those buyers are gone FOREVER. the return of 2005 prices will take decades of the typical 3-4% appreciation that is the natural order of things
add the likelihood of higher rates and the pool of qualifiers thins more…affordability is the key to buying…foks buy what they qualify for, the bubble of 2005 was a true bubble…no justifiable reason for 250K homes to be crossing the boards for a HALF A MILLION….except that the lenders were making loans to paupers and liars. they have stopped that.
loading...
FORECLOSURES IN DISGUISE?
Yes, those of you who believe the short sales are the foreclosures in disguise are probably right. Homeowners are taking what they perceive is a less damaging way out, and the banks are cooperating (though slowly) just to relieve themselves of what could be way too many foreclosures to handle.
ARE SPECULATORS OPTIMISTIC?
The author comments that speculators remain strangely optimistic about future price rises. Could it be that they a are not necessarily optimistic on price rises but are pessimistic on the future value of the dollar?
There are guesses both ways by equally reputable sources—will the dollar strengthen as the world economy weakens or will it weaken?
Many investors believe in a dollar that will someday become worthless. Perhaps they are jumping with both feet into real property and other hard assets because of that, not because they expect future jumps in home prices? People rushing into precious metals is another example of such belief.
Will anyone venture a guess? If hyperinflation did hit (and some are predicting deflation as the economy falters further) would housing values and home prices skyrocket too?
loading...