Is the Market About to Be Flooded with Foreclosures….Again?

By
Real Estate Agent with Integrity Real Estate Group

Is the Market about to be flooded with foreclosuresMost of the larger banks put a moratorium on foreclosures last fall and the impact could be seen throughout Northern Virginia.  Inventory decreased, bidding wars started and houses flew off the market.  Now the floodgates of foreclosures appear to be ready to open again.  And this time some analysts are suggesting up to 700,000 homes could be in this next round of foreclosures. 

"J.P. Morgan Chase & Co., Wells Fargo & Co., Fannie Mae and Freddie Mac all say they have increased foreclosure activity in recent weeks. Those companies say they have lifted internal moratoriums which temporarily halted foreclosures." WSJ 4/15/09

Driving around neighborhoods where foreclosures have been prevalent in our area you can find houses that have been sitting empty for months.  You can only imagine what might be lurking inside a property that hasn't had water, electricity or gas on for the entire winter.  Recently while completing a BPO I found a home that had obviously become party central.  The home was littered with empty beer cans, cigarette butts and other unmentionables left strewn throughout the house.

Are these numbers real?  Only the lenders know how many homes they have been holding during the moratorium.  However we have to be realistic and expect that later this spring we will see an increase in the number of foreclosure properties hitting the market in Northern Virginia.  Hopefully it won't bring significant price decreases in prices to some areas that were starting to see a slow recovery.

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                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

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Re-Blogged 1 time:

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  1. Charles Stallions 09/13/2009 08:15 AM
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Rainmaker
163,610
Jeannette Neerpat
CondoDomain.com - Coral Springs, FL
e-Pro Coral Springs/Parkland Real Estate

Hopefully if they do release they did them in incurments and not in masses!

Apr 17, 2009 11:32 PM #1
Rainmaker
6,211,902
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

The lenders are learning how to sell the REO inventory more quickly. Great opportunities this year for buyers and their agents.

Apr 17, 2009 11:36 PM #2
Rainmaker
473,105
Janice Roosevelt
Keller Williams Brandywine Valley - West Chester, PA
OICP ABR, ePRO,Ecobroker

We are expecting the same thing around Philadelphia

Apr 17, 2009 11:46 PM #3
Rainmaker
1,563,164
Gary L. Waters Broker Associate, Bucci Realty
Bucci Realty, Inc. - Melbourne, FL
Fifteen Years Experience in Brevard County

I think it will be happening rapidly. I guess the sooner it is done, the better for the market.

Apr 17, 2009 11:56 PM #4
Rainmaker
184,095
Laura Gray
RE/MAX Realty Group - Gaithersburg, MD

Cindy - There was a great article on the internet this week regarding this very subject. They are calling these "missing" foreclosures "Shadow" properties. We all know they are lurking in the shadows , but they haven't come out into the light yet but they will.

We probably have at least another 16 months of this market to get through before we see the end.

Apr 18, 2009 12:24 AM #5
Rainmaker
1,099,360
June Piper-Brandon
Houwzer Inc - Baltimore, MD
Piecing Dreams One Home at a Time

I heard that a lot of foreclosed homes were going to be released in April.  So far, I haven't seen that many.  Hopefully, they will come in drips, not in a deluge.

Apr 18, 2009 01:14 AM #6
Rainmaker
316,351
James Downing - Metro DC Houses Team REALTORS®, CRS, GRI, ABR,MRP, MilRes
Real Living | At Home - Washington, DC
When Looking to Buy or Sell - Make the Right Move

I am hearing the same things Cindy.  Plus there are places out there that have been foreclosed on; that have yet to be put on the market....

Apr 18, 2009 02:47 PM #7
Rainer
6,312
Mario Banuelos
The Agency - Palm Springs, CA
Real Estate Superstar

There is definately inventory here in Northern California that have foreclosed and are awaiting to be put on the market. I know through REO conferences that there will be at least another 12 months of REO's. Great opportunity for both buyers and investors - and us of course! All though it would be good to see the end of this, and be back to some of the normality we are used to; though it may be some time.

Apr 18, 2009 05:42 PM #8
Ambassador
1,894,639
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Jeannette-we can only hope they are paying attention to the numbers.

Roy-in our areas the lower priced properties are in bidding wars at the moment so the "deals" are getting a bit harder to come by.

Apr 19, 2009 02:17 AM #9
Ambassador
1,894,639
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Janice-I've started to see a few creep back into the market this week. 

Gary-this could be true.  If they price them right and they aren't dogs they will be gone!

Apr 19, 2009 02:18 AM #10
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Laura-I had written a post a few weeks ago about the inventory numbers in Prince William County being misleading since we do have properties that have been just sitting empty waiting.

June-we can all hope for that as well.

Apr 19, 2009 02:19 AM #11
Ambassador
1,894,639
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

James-I showed a nice property yesterday in Lake Ridge where the neighbor said the property had been vacant since last October.  It was a Freddie Mac property so it had been just sitting for months.

Tony-sales in my area have been brisk over the last few months.  With new inventory it might at least slow down the multiple offers and eventually stabilze the neighborhoods.

 

Apr 19, 2009 02:21 AM #12
Rainer
494,722
Lynn911.com ~ Dallas Real Estate Agent Top Team
Dallas Houses for Rent Dallas Apartment Rentals Lynn911.com - Dallas, TX

Cindy I believe is based on market of where you reside Dallas has foreclosures how not as much as other cities we are strong overall ! YEAH....

Apr 19, 2009 07:43 AM #13
Rainmaker
138,455
FRANK LL0SA Esq.- Northern Virginia Broker .:. FranklyRealty.com
Northern Virginia Homes - FRANKLY REAL ESTATE Inc - Arlington, VA

Cindy, just gave you a shout out on my blog post on this subject.

Apr 20, 2009 05:22 PM #14
Rainmaker
214,619
Dave Keys
MOVE UP in Google Search Learn How Here - Brea, CA
Chief Search Strategist Real Estate SEO Expert

You know the Obama administration has a firm grip when millions of homes with defaulted on loans are sitting idle, often with "owners" still living in them. Last year, these folks would have been on the street but a white house imposed freeze on foreclosures is a cornerstone of a huge "shadow inventory." How long the administration can keep their finger in this dike is anyone's guess but when the wall gives way, we'll have conditions for a perfect storm of excess inventory.

Just try a search on "housing bubble smackdown"

May 31, 2009 10:25 AM #16
Rainer
6,006
Brian Patton
Capital Realty Advisors, LLC - Alpharetta, GA
CCIM

I think now is the time to buy some foreclosures as an investor.  Low rates, lots of tenants, and lots of houses to choose from.  I just wrote an article about this at:   www.capitallistings.com

 

Jun 16, 2009 12:53 PM #17
Rainmaker
2,614,941
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
800-309-3414 - Pensacola, Pace or Gulf Breeze, Fl.

There has been some really good post on this here lately. I have said for over a year that the banks have been holding off for

  1. they cannot afford the inventory on the books so some are just doing a few at at a time.
  2. a lot have been turned into rentals with the prvious owners and then some tenants remaining.
  3. I believe the "Produce The Note" has an effect on forclosures as well.

 The moratorium here carried a big impact as well and we are still not past that.

Sep 14, 2009 01:40 AM #18
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