For The First Time In Several Years Foreclosure Activity Slows

By
Real Estate Agent with CONLON/Christie's International Real Estate

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Foreclosure Activity Slows For The First Time In Several Years

Foreclosure concentration, by state (April 2010)The national foreclosure rate is finally falling.

According to foreclosure-tracking firm RealtyTrac.com, the number of foreclosure notices dropped 2 percent between April 2009 and April 2010.

2 percent may not seem like much, but it's the first time in the history of the RealtyTrac report that the annual foreclosure rate has dropped.

To be sure, foreclosure rates remain elevated -- more than 300,000 were reported last month, but default notices appear to be approaching a plateau.

The RealtyTrac report shows some other interesting statistics, too:

  • 6 states accounted for more than half of April's bank repossessions nationwide
  • For the 40th month in a row, Nevada topped the nation's foreclosure rate
  • Foreclosure rates dropped in both California and Arizona, 2 foreclosure hot-spots through 2009

The good news for housing doesn't stop there.  9 of the top 10 leading metropolitan areas for foreclosure-related activity showed a drop in annual activity.  Only Reno, Nevada showed an increase.

Buying distressed homes is big business, according to the National Association of Realtors®, accounting for 35 percent of all home resales with a typical discount ranging near 15 percent on value.

But with the discount comes some caution. You need to know how buying a foreclosed can be different from buying a non-foreclosed home.

For example, distressed properties are often sold as-is and may have defects that render them "un-lendable".  Secondly, "quick closings" aren't usually possible with bank-owned homes -- you're often at the bank's schedule and mercy.

And, lastly, not all foreclosed homes are searchable online. You'll usually find more stock if you work with a real estate agent versus searching online.

The RealtyTrac foreclosure report is thorough and can help you gauge what's happening on a state-by-state level, and in the nation's largest metropolitan areas.  Once you've done your research, talk to your real estate agent about what to do next.

There's still good deals in the foreclosure market — you just have to know where to find them.

Posted by Michael LaFido on May 13, 2010 | Tags: Foreclosures

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Ambassador
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Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

This is very good news and among other pieces of information seem to indicate a turning in the market

May 13, 2010 06:58 AM #1
Rainmaker
1,571,116
David Saks
(retired) - Memphis, TN

Nationally, perhaps, but locally the market still stinks. As an example, if there are 20 foreclosures in Bozier City, Iowa (if there is such a place) and none in the rest of the nation the percentage of foreclosures to current, serviceable mortgages that are on track is very low. However, if there are only 40 homes in Bozier City the percentage is off the wall. National stats skew the scale.

May 13, 2010 07:02 AM #2
Rainmaker
647,985
Team Honeycutt
Allen Tate - Concord, NC

Thats a great sign...I hope we can get through them and get back to as normal a market as possible!

May 13, 2010 07:06 AM #3
Rainmaker
927,718
Kay Van Kampen
RE/MAX Broker, RE/MAX - Springfield, MO
RealtorĀ®, Springfield Mo Real Estate

I always hold my breath when we get this kind of news.  Hope it continues.

May 13, 2010 02:06 PM #4
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Michael LaFido

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