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Foreclosures - When will the Bleeding Stop

Foreclosures have just been starting to hit the Charlottesville, Virginia area real estate market. Subprime loans, no/low documentation loans, interest only loans, and subprime ARMS have played a major role in today's mortgage crisis. The hardest hit were states that saw a rapid rise in home prices and a large volume of sales thus leading to a housing boom and an accompaning high number of subprime loans. Luckily Virginia is was not one of the top participants in this real estate feeding frenzy.

Research economist, George Ratiu, in an article in the National Association of Realtor's Real Estate Insights predicts that "delinquencies and foreclosures, especially those tied to the subprime market, will continue to be a factor in the housing and credit markets during this year, and part of 2009. The time table for the market's recovery is less certain." He also states that there has been an increase in mortgage applications over the last few weeks, the majority being refinancings. This points to the probability that as we see a continued decrease in subprime activity we will also see a steady decrease in foreclosures.

To read the article click here.

Pam Dent
Real Estate III
Charlottesville, Virginia
434 960-0161
www.JumpintoGreenerPastures.com
www.CharlottesvilleHorseFarmsandCountryHomes.com
www.Charlottesville.virginiablogpage.com

Posted by Pam Dent - REALTOR Charlottesville Virginia Homes and Horse Farms on 06/24/2008 04:02 PM

Comments (11)

charlottesville, virginia, real estate, real estate market, realtors, foreclosures, subprime loans, housing, home prices

Originally posted at: Charlottesville Real Estate Talk: Foreclosures - When will the Bleeding Stop

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11 Comments on Foreclosures - When will the Bleeding Stop

JUN

2008

Pam- While the huge foreclosures can be partially credited to the subprime "crisis" (a.k.a. banks did it to themselves) here in Flint, MI alot of it is also due to the huge unemployment #s as we are last I heard #1 in the nation now. The mix of the two definitly isn't helping anything, as all business is down, and gas prices keep rising (although today it actually went down a little)

Pam, In northern Michigan we've been in the "foreclosure market" for sometime mainly on residential properties. Our second home / resort market is down of course, but we are seeing some good sales. Many of our buyers come from southeast Michigan. The unemployment problems in that area have certainly slowed us, but I will always remain optimistic.

JUN

2008

Chris - Your home area has definately been hit hard from a lot of different directions.

Jacqueline - Wow. Its got to be hard to stay positive in the middle of so much. My hat's off to you.

JUN

2008

Pm- I have heard these timelines before....interesting but I feel things are getting better every day. Nothing concrete mind you I just feel it :)

JUN

2008

Pam, there will be some great deals for buyers at the cost of the original home owners. Sad.

Kathy - We all have to keep positive. Unfortunately in my area we have just started seeing foreclosures come on in the last few months. I think we will have to get them out of the way before things really turn around.

Duane - There are some great deals on foreclosures for buyers if they are willing to assume the risk and a lot of them are. All of the foreclosure contracts that I have written have had multiple offers.

Pam, I would have to assume they are getting a lot activity, and probably a ton of low ball offers.

Duane - However I have found that the offers that are getting accepted are cash, with quick closings, and at or above list price. What the buyers need to remember is that the price is already below market value when it comes on the market as a foreclosure.

Pam, to cool on the cash deals. I think when they see the "F" word they assume there's room for movement in price.

We've been dealing with several waves of foreclosures in Georgia, and this seems to be one of the worse. Even folks with equity in the home are at risk, because there is so much competition in home sales, that they may not get an offer if they have a rate adjustment coming up. I've had this happen on several homes already this year. It is beyond scary. Unfortunatley, this is not going to end anytime soon. They numbers here in Atlanta are just way to big.

Duane - You are right. They never stop to think that the price is already discounted. Also they think noone is buying right now unless their agent happens to tell them that the foreclosures are seeing activity and multiple offers.

Jim - It is a very sad situation for so many people. I am very glad that my area of Virginia is not as hard hit as many places.

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