Posts Tagged ‘foreclosures’

Foreclosures down but not out

Thursday, March 11th, 2010

Real estate data tracking firm, RealtyTrac, reported foreclosures fell for a second straight month in February.

The numbers

February foreclosure filings of 308,524 reflect a decrease of 2 percent from January. However, this is still a 6 percent year-over-year increase.

“The 6 percent year-over-year increase we saw in February was the smallest annual increase we’ve seen since January 2006, when we began calculating year-over-year increases, but it still marked the 50th consecutive month of year-over-year increases in foreclosure activity,” said James J. Saccacio, CEO of RealtyTrac.

Some fear the recent decrease in foreclosures is a false-positive. With the Treasury’s HAMP coming under fire for its low success rate in modifying mortgages for at-risk homeowners, many fear foreclosures will eventually find their second wind.

DHW asks: Do you think foreclosures will continue to decline?

Housing double dip? The shadow knows

Tuesday, January 5th, 2010

Although he stopped short of forecasting another dip in homes sales next spring, Robert Shiller (one-half of the super Swedish music group ‘Case-Shiller’) sounded some alarming notes. In an interview with The Wall Street Journal, Shiller expressed concern with the ’shadow inventory’ of foreclosed homes that are likely to pour into the market. Shiller also worries about the high unemployment rate and the government’s inevitable departure from the housing market rescue business.

DHW asks: Do you think the housing market will see a double dip?

A new twist on an old story

Monday, January 4th, 2010

There is no greater rivalry than that of Realtor v Appraiser. Red Sox v Yankees? Not even close.  Alien v Predator? Yawn.

Animosity between real estate agents and appraisers is nothing new. However, in recent months appraisers have been undercutting sales prices with increased regularity. Much of the conflict has to do with the rising number of foreclosures selling at discount prices. Approximately 40 percent of the homes to sell last year were either foreclosures or short sales. Adding to the drama, buyers are placing a 30% premium on non-foreclosed homes, according to zillow.com.

Appraisers admit that it is getting tougher to determine a home’s worth in today’s market. Some real estate agents, however, blame the appraisal cuts on cost cutting measures taken by lenders. Oftentimes, lenders will use an in-house appraiser or outsource to an out-of-area, low-cost appraiser.  Either way, these appraisers may not be familiar with the markets they are hired to gauge.

The silver lining

With appraisal cuts on the rise, this may be a sign that some markets are beginning to stabilize. In a declining market, it becomes easier to find comparable sales for an appraisal. As prices rise, appraisers have a tougher time finding sales that support the higher prices. It’s just one of the growing pains that come with a recovering market.

DHW asks: Are you seeing a rise in appraisal cuts in your market?

Some see glass half-foreclosed

Sunday, December 20th, 2009

Just one day before the Congressional Oversight Panel criticized the government’s loan modification program as outdated and under-performing, HUD secretary Shaun Donovan reported the pace of trial modifications are beginning to exceed foreclosures. “The fact we now have a pace of trial modifications that exceeds the pace of weekly foreclosures is a very important milestone,” Donovan said. “We believe we’ve reached an important turning point.”

Elizabeth Warren, who chairs the panel responsible for overseeing the $700 billion financial bailout program, remains unconvinced. “We’re concerned that not enough foreclosures will be prevented,” Warren said.

USAToday reported the panel’s three major concerns with the government’s loan modification program.

  1. The kinds of mortgages that will make up growing numbers of foreclosures exceed the program’s eligibility requirements.
  2. With a goal of modifying only 25,000 to 30,000 loans a week, fewer than half of the predicted foreclosures would be avoided. One in eight homes are currently in foreclosure or default and 250,000 additional foreclosures are initiated monthly.
  3. Many modifications so far are still in a three-month trial period. As of Sept. 1, only 1,711 homeowners had received permanent modifications under the federal program. And after five years, many will see higher payments.

If you have questions about a loan modification under HAMP, visit the official website.

DHW asks: Do you think loan modifications will continue to outpace foreclosures?

Lockhart: President must get more agressive with loan modifications

Friday, December 11th, 2009

Vice chairman of WL Ross & Co. and the former director of the Federal Housing Finance Agency, James B. Lockhart III, warned the US housing market may not be out of the woods just yet.

Lockhart predicts foreclosures will “spike” unless the the Obama administration gets more aggressive with loan modifications. The former director of the FHFA feels greater principal reductions are in order to keep families in their homes.

For more information on loan modifications, visit the Government’s official website.

DHW asks: Do you agree with Mr. Lockhart?

Foreclosures down but not out

Thursday, November 12th, 2009

U.S. foreclosures sank for a third consecutive month in October, down 3% from the previous month. However, many feel this trend will not continue. Foreclosure notices were curtailed in many states due to temporary, legislative intervention. CNBC reported Nevada foreclosures “dropped 26 percent from the previous month because of new legislation requiring mediation before initiating foreclosure proceedings.” Illinois had similar legislation, but foreclosure notices skyrocketed there 56% in October from the previous month.   

States leading in foreclosure:

  1. Nevada
  2. California
  3. Florida
  4. Arizona
  5. Idaho

DHW asks: Are foreclosures down in your area?

Critics be damned. Home sales up, prices down

Tuesday, November 10th, 2009

Critics of the Housing Tax Credit were quieted, if only briefly, when the National Association of Realtors (NAR) released data for third quarter home sales. According to the trade group, home sales increased by nearly 6% over this same time last year. Despite the spike in sales, prices have fallen more than 11% during the same period. The U.S. median existing single-family price for the third quarter was $177,900.

Opponents of the housing tax credit feared an inflationary reaction in home prices. Although housing inventories are down, existing units still outweigh the demand.

NAR chief economist,  Lawrence Yun, predicts home prices will stabalize next spring. His prediction may be overly optimistic. Foreclosures and short sales made up 30% of thrid quarter sales. There is no real evidence to suggest foreclosures will take a breather in 2010.

DHW asks: Do you see a bottom to the housing market?

Interest in FHA 203K loans up

Saturday, October 31st, 2009

As more foreclosed homes in need of repair hit the market, interest in the FHA streamlined 203k rehab loan is on the rise. Buyers can finance up to $35,000 in home improvements under this program. Sellers: DesperateHouseWise.com offers some ways you can help increase inventory for 203k buyers while putting some extra dollars in your pocket. Keep reading our posts for details. Buyers: check out HUD’s website for more details about the 203k loan program.

DHW asks: Have you or anyone you know used the FHA 203k rehab loan? How was the experience?