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By Paul A. DiSegna | Real Estate Pro in Rhode Island
  • Shadow Inventory May Deplete Quicker In Hardest Hit States

    Posted Under: Home Buying in Florida City, Home Selling in Florida City, Foreclosure in Florida City  |  March 24, 2011 5:43 AM  |  558 views  |  No comments

    Shadow Inventory May Deplete Quicker In Hardest Hit States

    03/23/2011BY: JOY LEOPOLD Printer Friendly View

    A recent report by the National Association of Realtors (NAR) reveals interesting information regarding the shadow inventory of the hardest hit states.

    It is pretty well known that Arizona, Nevada, California, and Florida have been most affected by the foreclosure crisis. Together the four states make up 42 percent of the foreclosure volume in the United States.

    But the situation is improving somewhat. The Mortgage Bankers Association reported that in the last quarter of 2010, 90-plus day delinquencies fell in these four hard-hit states. At the same time, total non-current loans have dropped 38 percent nationally.

    Florida has the largest shadow inventory, with more than 441,000 properties.

    “The issue in Florida largely stems from inflated foreclosure inventory, which takes a very long time to clear,” said the report.

    The average number of days loans are delinquent in Florida is 638 days. The report also notes that California and Florida have seen the length of their foreclosure processes rise more than 150 percent since 2008.

    But Arizona and Nevada, while still ranking in the top 25 states with the largest shadow inventory, are “fairing much better in terms of the shadow inventory.”

    “This is largely due to their shadow inventory moving somewhat faster through the pipe lines and comprising large share of existing sales,” the report continued.

    Distressed sales make up 55 percent of existing sales in Arizona and nearly 70 percent in Nevada. The report calculates the number of months it would take each state to clear its shadow inventory, by dividing the shadow inventory by the monthly number of distressed sales.

    Using this formula, NAR found it would take 51 months to clear the shadow inventory in New Jersey, where only about 20 percent of existing home sales are distressed sales.

    By contrast, Nevada’s distressed sales make up 70 percent of existing home sales, and by NAR’s calculations, the states shadow inventory could be cleared in as little as 7 months.

    NAR calculated it would take 21 to 30 months to clear the shadow inventory in several states, including Florida, Louisiana, Hawaii, and Washington.

    Like Nevada, Arizona fell into the 7-10 month range.

    The majority of the states fell within the 11 to 20 month range, including California and Texas.



  • Fannie Employs Active Data Technologies' Pilot in Select REO Markets

    Posted Under: Home Buying in Florida City, Home Selling in Florida City, Foreclosure in Florida City  |  March 19, 2011 5:14 AM  |  640 views  |  No comments

    Fannie Employs Active Data Technologies' Pilot in Select REO Markets

    03/16/2011BY: HEATHER HILL CERNOCH Printer Friendly View

    Active Data Technologies Inc., a Florida-based creator of custom REO Web sites, released a statement this week announcing that the company recently completed a pilot REOoffer management platform for Fannie Mae.

    The program, available through the GSE’s HomePath Web siteallows agents representing homebuyers or investors to submit offers online to purchase Fannie Mae-owned properties.

    “This innovative program is a major victory on so many different levels,” said Brad Geisen, president and CEO of

    Active Data Technologies. “Interested buyers can easily submit offers on affordable homes, and Fannie Mae tracks them with the proprietary system that we built to work within the framework of HomePath.com.”

    The HomePath Online Offers system is currently available for Fannie Mae-owned properties in the Orlando, Florida and San Diego, California metropolitan areas, as well as Wayne County, Michigan. Active Data Technologies says the technology has seen positive results in these three test markets.

    After reviewing resource materials on the site and completing a Webinar training program, real estate agents in the test markets submit offers online on behalf of their buyers. Real estate professionals representing buyers are then able to connect directly with Fannie Mae’s listing agent through HomePath.com. The buyer’s real estate agent can also find information on the site regarding financing and incentive options offered through HomePath.

    “Automating the transaction process is the start of moving inventory quicker and getting the housing market on the road to recovery faster,” said Geisen. “HomePath Online Offers is a huge step in the right direction.”

 
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