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Manu's Blog

By Manu Kapoor | Broker in Queens, NY
  • Foreclosure Activity at 40-Month Low

    Posted Under: Home Buying in California City, Home Selling in California City, Foreclosure in California City  |  May 14, 2011 11:29 AM  |  1,243 views  |  2 comments

      Foreclosure Activity at 40-Month Low

    Foreclosure activity in the U.S. has fallen to its lowest level in 40 months, according to RealtyTrac. The company’s foreclosure market report for April shows that filings – including default notices, scheduled auctions, and bank repossessions — were reported on 219,258 properties last month.

    That figure represents a 9 % decline compared to March and is down 34 % from a year earlier.

    It marks the seventh straight month has recorded a decline in foreclosures. This slowdown continues to be largely the result of massive delays in processing foreclosures rather than the result of a housing recovery.

    The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales, and possibly other disposition alternatives.

    Mortgage Bankers Association shows that about 3.7 million properties are in this limbo stage of between serious delinquency and foreclosure.

    The second delay, occurs after foreclosure has started, when lenders are taking much longer than they were just a few years ago to complete the foreclosure process.

    As evidence of this extended timeline, completed foreclosures in the first quarter of 2011 took an average of 400 days from the initial default notice to REO. That’s up from 340 days in the first quarter of 2010 and more than double the average 151 days it took to foreclose in the first quarter of 2007.

    The foreclosure process is taking much longer in some states. The average timeframe from initial default notice to REO in New Jersey and New York was over 900 days in the first quarter of 2011, more than three times the average timeline in the first quarter of 2007 for both states.

    The full foreclosure process in Florida took an average of 619 days in the first quarter, up from 470 days in the first quarter of 2010 and nearly four times the average of 169 days it took in the first quarter of 2007. 

    In California, the foreclosure timeline extended to 330 days in the first quarter. It was 262 days a year earlier and just 134 days in the first quarter of 2007.

    Ten states accounted for 70 % of U.S. foreclosure activity in April, led by

    1. California with 55,869 properties receiving a filing during the month.

    2. 19,649 Florida properties received a foreclosure filing in April, the second highest state total despite a 59 % decrease from April 2010.

    3. Arizona tallied the third highest state total with 13,419 properties receiving foreclosure filings in April,  

    4. Michigan with 12,996,

    5. Nevada with 11,761.

    6. Illinois (10,055),

    7. Texas (8,793),

    8. Georgia (8,479),

    9. Ohio (7,962), and

    10. Colorado (4,379).

    www.goforshortsale.com

    718-775-7557

  • REO Sales - Highest Share in the Nation

    Posted Under: Home Buying in California City, Home Selling in California City, Foreclosure in California City  |  December 13, 2010 12:14 PM  |  1,310 views  |  No comments

    REO Sales - Highest Share in the Nation

    Where do REOs take the largest piece of the home sales pie? According to data compiled by the independent real estate research and analytical firm Hanley Wood Market Intelligence, it’s Modesto, California.

    In this Northern California city that describes itself as the heart of the agriculturally rich San Joaquin Valley, Hanley Wood found that 60.5 % of total home sales closings during the third quarter of this year were for bank-owned properties. By comparison, the company says the national average is 28 %.

    Modesto’s official city Web site boasts that homeownership opportunities abound there, with a median home price of $131,000, substantially lower than the state median, which the California Association of Realtors reports was $304,220 in October.

    In a Housing Intelligence blog posting by two of Hanley Wood’s analysts, aptly titled “Banktowns,” they note that a few years ago, suggesting that REOs could comprise the majority of all home sales transactions was unheard of, but several years of a depressed housing market and millions of foreclosures have made the scenario a reality for eight metropolitan statistical areas (MSAs).

    Las Vegas and Flint, Michigan, both with 59.8 % of their third-quarter transactions involving foreclosed homes.

    The other five MSAs where more than half of the sales last quarter were REOs include: Detroit, Michigan - 56.6 %; Phoenix, Arizona - 53.9 %, California – 53%, Florida - 51.5 %.

    If there is a silver lining at least it means these distressed properties are moving their way through the system and back into the market.

    www.goforshortsale.com

    718-775-7557

  • Fannie Mae Launches REO Program

    Posted Under: Market Conditions in California City, Home Buying in California City, Home Selling in California City  |  November 19, 2010 3:05 PM  |  1,382 views  |  No comments

    Fannie Mae Launches REO Program

    Fannie Mae is testing the waters for a new program that allows real estate agents to submit offers for the company’s REO properties on behalf of their clients and track the status of the offers online.

    The program is called Home Path Online Offers and is being piloted in Orlando, Florida; San Diego, California; and Detroit, Michigan.

    The new feature is currently available for Fannie Mae-owned homes in these areas through the GSE’s Home Path Web site. Home Path homes are owned by Fannie Mae and include a wide selection of properties, including single-family homes, condominiums, and town houses.

    “Home Path Online Offers provides increased transparency and efficiency in the submission process for our real estate partners and prospective buyers,” said Jim Tiegen, VP of Fannie Mae’s REO regional offices. “This online pilot is a critical step toward ensuring that all buyers have the same experience making offers and purchasing homes.”

    Foreclosure problems continue to worsen, and they’ve left the nation’s largest mortgage company with a glut of repossessed homes. As of the end of the third quarter, Fannie Mae’s inventory of REO homes stood at 166,787 properties.

    Just three months earlier, the GSE’s REO supply totaled 129,310 units. Fannie says the carrying value of its REOs during the third quarter of this year was $16.4 billion.

    www.goforshortsale.com

    718-775-7557

 
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