Foreclosure Changes in June 2012

By
Real Estate Broker Owner with The Condo Guy
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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
565,110
Margaret Goss
Chicago's North Shore & Winnetka Real Estate
Baird & Warner 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.

 

July 18, 2012 08:00 AM
Rainmaker
357,213
Kevin Mackessy
Dedicated. Qualified. Local.
Blue Olive Properties, LLC
Buying foreclosures can be a little tricky, especially with foundation damage and a shifting house.
July 18, 2012 09:53 AM
Rainmaker
402,730
Beth Atalay
Cam Realty of Clermont FL
Cam Realty and Property Management

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.

July 18, 2012 01:30 PM
Rainer
130,212
Laura Murray
Search Montgomery Co., MD for homes www.MDRealEstateOnline.com
Weichert

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

July 18, 2012 01:49 PM
Ambassador
1,516,891
Christine Donovan
Broker/Attorney 800-610-7253 DRE01267479 - Costa M
Donovan Blatt Realty

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

July 18, 2012 10:49 PM
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Rainmaker
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Vermont Real Estate Industry and General information. Specializing in condo real estate and home sales.