This started out from a conversation I had with a lender today and it got pretty deep. I'm in Vegas and looking at the top 5 foreclosure states by percentage, Nevada, California, Florida, Michigan, Ohio are at the top. The numbers are pretty high. 2007 3rd Qtr 635,159 total in the nation for foreclosure filings.

However based on actual number of filings per state the top 10 states are; CA, FL, OH, TX, MI, GE,AZ, IL, CO. Nevada is number 10 on the list with 16,817, California had 148,147. Of the top 10 states there were 457,396 out of the 635,159 filings.

I wanted to give the numbers to get to the point.

The point of this post is a couple of questions. For lenders here on AR that can respond. After a foreclosure is final how does a lender look at a borrower with a foreclosure for credit worthiness and how long is this going to affect an otherwise good borrower IF they attempt to buy another home.

Question 2 is for the group at large to consider and respond to. If the question to number 1 is a long time or not able to borrow again for x number of years and if apartment managers run checks and see foreclosures on the credit rating and don't rent to them what's to come of the people that are good people trying to take care of providing a home for their families?

My wife and I have heard from several friends who are agents that are getting calls from people that came into the market, bought high, had high mortgages and now are crying to get their home/condo sold and with the market coming down they can't sell at their price, they can't make the payment and are in fear of loosing everything, and these are the people that we saw as realtors and lenders as our best clients and those that we closed large sales/loans with. Even some of my realtor friends are in this situation.

And finally based on responses to question 1. What solutions are there that as agents and realtors we can respond with? Obviously the foreclosueree is going to have to live/move somewhere. What's the next phase in the market cycle that allows for a win/win solution for everyone?

These are some big questions and to be forward looking as real estate industry professionals what are some of the answers?

Source:
http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=3567&accnt=64847


Dave Kreitel
http://www.mohavecoland.com/