Foreclosure Changes in June 2012

By
Real Estate Broker/Owner with The Condo Guy
<!-- This material is non-exclusively licensed to Bill Desautels and may not be copied, reproduced, or sold in any form whatsoever.-->

Foreclosure changes June 2012

The number of U.S. homes receiving foreclosure notices topped one million through the first six months of 2012, according to RealtyTrac.

There were 1.046 million foreclosure filings between January - June 2012, says the foreclosure-tracking firm in its Midyear 2012 Foreclosure Market Report. The tally represents a 2 percent increase from the immediate six months prior.

A "foreclosure filing" includes all of the following foreclosure-related actions : (1) Default notices, (2) Scheduled auctions, and (3) Bank repossessions. 

One notable fact from within the report is that, even as the number of repossessed homes dropped nationwide, the number of homeowners receiving a Notice of Default or lis pendens rose. These notices are the first step in the foreclosure process which means that we should expect the national foreclosure pipeline to fill later this year.

It's no coincidence that foreclosure starts are rising now, either.

Earlier this year, a $25 billion mortgage servicing settlement provided banks with the necessary framework and rules by which they can foreclose upon a home. Prior to the this settlement, fearing legal liability, some banks chose to slow -- or halt -- foreclosure starts entirely. Since the settlement's announcement, though, foreclosure activity has resumed.

For today's home buyers, the foreclosure market represents an interesting opportunity. Homes purchased while in the various stages of foreclosure can often be purchased for a lower price than homes which are not in foreclosure; one reason why foreclosed homes account for 25 percent of all home resales

However, be careful that you don't confuse "less expensive" with "less costly".

Foreclosed homes are often sold as-is and may be in various stages of disrepair at the time of purchase. Spending money to repair a foreclosed home in order to make it habitable could wipe out the money saved on its sales price. Your best real estate "deal", therefore, may be a non-distressed home in sound, move-in ready condition.

If you're buying foreclosures -- or even considering it -- be sure to talk with a real estate agent. The process of buying a foreclosed property is different from buying a "regular" home. You'll want somebody experienced on your team.

posted by Bill Desautels
P: (802) 655-9100 (800) 639-4520 x217 F: (802) 655-0400 E: condoguy@condoguy.com
The Condo Guy - Vermont condo real estate
The Condo Guy has been providing advice to buyers
and sellers of Vermont condos real estate
for nearly 30 years.
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Rainmaker
2,036,936
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

Good information for buyers. Anyone looking to buy a foreclosure should work with an agent who has experience with foreclosures.

Jul 18, 2012 04:34 AM #1
Rainmaker
895,372
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Bill, I thought foreclosures had peaked out. This is going to be more of the same.

Jul 18, 2012 04:59 AM #2
Rainmaker
542,536
Ed & Tracy Oliva
West USA Realty - Arizona - Fountain Hills, AZ
Arizona Agents

WOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! And I thought we were almost out of the woods on forclosures but I guess not,keep up the good work.  E

Jul 18, 2012 05:31 AM #3
Rainmaker
572,916
Gary Frimann
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
California Broker and REALTOR

Hi Bill,  I like your line about no confusing less expensive with less costly.  Perfect.

Jul 18, 2012 06:55 AM #4
Rainmaker
1,369,128
Richie Alan Naggar Author PEARLS SERIES of books
People first then business! Ran Right Realty Riverside, Ca - Riverside, CA
on LIFE and LOVE plus Real Estate too!

Not everything that is foreclosed upon is a good deal....Once upon a time maybe....

Jul 18, 2012 07:16 AM #5
Rainer
157,688
Anthony Daniels
Coldwell Banker - San Francisco, CA
SF Bay Area REO Specialist

A good statistic to add to the pile of statistics, offering both positive and negative news.

Thanks for sharing it.

Jul 18, 2012 07:43 AM #6
Rainmaker
530,583
Chris and Dick Dovorany
Homes for Sale in Naples, Bonita Springs and Estero, Florida - Naples, FL
Broker/Associate at Premiere Plus Realty

You are right on.  If a person can not afford their mortgage do you think the a/c is going to be maintained? 

Jul 18, 2012 07:50 AM #7
Rainmaker
629,869
Margaret Goss
Baird & Warner Real Estate - Winnetka, IL
Chicago's North Shore & Winnetka Real Estate

Foreclosures are not always a bargain as many buyers seem to think.  I also love your line about not confusing "less expensive" with "less costly."  The costs to repair a foreclosed home can often be more than just buying a non-foreclosed home.

 

Jul 18, 2012 08:00 AM #8
Rainmaker
465,123
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.
Buying foreclosures can be a little tricky, especially with foundation damage and a shifting house.
Jul 18, 2012 09:53 AM #9
Rainmaker
552,574
Beth Atalay
Cam Realty and Property Management - Clermont, FL
Cam Realty of Clermont FL

Especially those buyers who are after getting a "good deal" they truly need good representation and direction from a professional, however, often times they jump in with eyes closed and ask for help once they're too deep in.

Jul 18, 2012 01:30 PM #10
Rainer
132,361
Laura Murray
Weichert - Silver Spring, MD
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com

In Maryland we are have a real shortage of inventory.  Mostly due to the lack of foreclosure properties hitting the market.

Jul 18, 2012 01:49 PM #11
Ambassador
1,598,146
Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 800-610-7253 DRE01267479 - Costa M

Bill - I too was hearing that the foreclosure starts are increasing after the settlement.

Jul 18, 2012 10:49 PM #12
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Rainer
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