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Foreclosure Filings Nearly Double

aha avatar
Beach Comber
10,639 views
Foreclosure Filings Nearly Double

Thursday, October 11, 2007 8:07:21 AM
By ALEX VEIGA
Foreclosure filings across the U.S. nearly doubled last month compared with September 2006, as financially strapped homeowners already behind on mortgage payments defaulted on their loans or came closer to losing their homes to foreclosure, a real estate information company said Thursday.
A total of 223,538 foreclosure filings were reported in September, up from 112,210 in the same month a year ago, according to Irvine-based RealtyTrac Inc.
The number of filings in September was down 8 percent from August's 243,947, the firm said.
Despite the sequential decline, the September figure represents the second-highest total for filings in a single month since the company began tracking monthly filings two years ago.
"August was an extraordinarily high month for foreclosure activity, so some falloff was almost predictable," said Rick Sharga, RealtyTrac's vice president for marketing.
The filings include default notices, auction sale notices and bank repossessions. Some properties might have received more than one notice if the owners have multiple mortgages.
Typically, borrowers must be 60 to 90 days past due on their mortgage payments before their lender will consider them in default, the first stage of the foreclosure process. If a homeowner can't find a way to get current on payments, the home is then often put up for auction, and if it doesn't sell, it eventually goes back to the bank.
In all, 39 states saw a decline in foreclosure filings, the firm said.
Sharga noted that there was a spike in the number of bank repossessions in August that did not occur in September.
It's likely that the sequential decline in foreclosure activity between August and September was just a blip, not a bellwether of lessening foreclosure filings.
"We don't see September as the beginning of the end in this cycle of foreclosures," Sharga said.
The foreclosure rate for the nation in September was one foreclosure filing for every 557 households, the firm said.
The U.S. housing market has seen sales decline and home prices fall or remain flat, making it harder for homeowners who can't afford to make mortgage payments to sell their homes or seek refinancing.
Many of those troubled homeowners were among those who took on adjustable-rate mortgages that are now adjusting to a higher interest rate, translating into payments they cannot afford to make.
The rising delinquencies and foreclosures this year have led the mortgage industry to tighten lending standards, further narrowing options for homeowners struggling to pay their mortgage.
Florida had one foreclosure filing for every 248 households. The state reported 33,354 foreclosure filings in September, down just less than 2 percent from August, but more than three times greater than September 2006's total.

________________________________________________

Contrary to some of the posts I've seen on SoWal about people facing foreclosure, the people in these situations are not just speculators and financially irresponsible people. Many are people who have been laid off or whose salaries have been scaled back due to the changes in the economy. ​


That said, I've been working with people in default and/or foreclosure to assist them in saving their homes, and have some advice for those of you in trouble with your mortgages. The biggest mistake that people make is acting too late. If you can't afford your monthly payment, do something about it. See if you can refinance before you get behind on your payments. If you get a couple of months behind, contact your lender & see if they can work with you. Trust me, the lenders don't want your property, especially in this market. You'd be surprised at the options that are available, especially if the lender realizes that the property is over-leveraged. And, for heaven's sake, if you get served with foreclosure papers, contact an attorney immediately. Even if you are willing to give up the property, if you get a foreclosure judgment you will be responsible for paying the difference between the amount owed (including interest, late fees and the lender's attorney fees) and the amount that the property sells for at the foreclosure auction. An attorney may be able to negotiate a better deal for you.​

Replies

67
Bob avatar
SoWal Insider
#52
Nattering nabobs o' real estate negativity.....repent!!!!!
Beach Fanatic
#53
Actually, the correct terminology is a quitclaim deed. It's a type of deed in which the seller doesn't warrant title. Seller transfers to Buyer whatever interest Seller holds, if any. Now, back to the Bobby and Shelly show and be careful Bobby, Shelly's always right -- at least that's what someone told me.
elgordoboy avatar
Beach Fanatic
#54
Nitpicking minutiae is not edifying for anyone.
I am sorry you took it that way
Bobby J avatar
Beach Fanatic
#55
I have no desire to tangle with Shelly. I actually have learned a great deal from her/him. I have never found her/him to be too disrespectful either.
I have a little beef right now with Capricious. Shelly has never accused me of being deceitful.

I may even be wrong on my data but I can promise everyone on these boards two things.

1. We are pretty busy compared to last year. It is allot different!
2. I would never intentionally deceit anyone.
Beach Lover
#56
If you are thinking about buying a foreclosure, be aware of what happens to some of these things; some homeowers aren't the happiest of campers when the bank comes knocking.

"Just before the bank took possession of a home in northwestern Riverside County, its former owners attacked the walls with paintball guns and smashed gaping holes in them.

They ripped out stair railings, banisters and cabinet doors in the half-million-dollar Eastvale house. Then they turned on the upstairs bathroom sinks, put down the drain stoppers and fled as the bank's locksmith arrived to rekey the doors.

At least this is what real estate inspectors, working for the bank, concluded after they found the roughly two-year-old dream home soaked and halfway gutted. They say it wasn't even the worst that they encounter. "
Full Article: http://www.pe.com/localnews/inland/stories/PE_News_Local_D_repo12.251476d.html

Be careful when you get in your Car to drive to the store. You may get in a terrible accident.
Be careful when you go outside to walk to the store you might get hit by a car.
Be careful not to dream, it might not come true and you will be crushed.
Mr Shelly, you are truly an intellectual , and it took me 5 times on spell check to spell intellectual . Some live more in Fear some live more in Faith.
How about the positive spin on buying Foreclosure Properties not the less than 1% of the Fear of what could happen.
00seer00
SHELLY avatar
SoWal Insider
#57
be careful Bobby, Shelly's always right -- at least that's what someone told me.

That would be me :biggrin:


.
SHELLY avatar
SoWal Insider
#58

How about the positive spin on buying Foreclosure Properties not the less than 1% of the Fear of what could happen.
00seer00

Personally, I think the whole mess that bought about the current rash of foreclosure properties sucks out loud...positive spin?....I'd have to dig far too deep for that.


.
Beach Fanatic
#59
I have no desire to tangle with Shelly. I actually have learned a great deal from her/him. I have never found her/him to be too disrespectful either.
I have a little beef right now with Capricious. Shelly has never accused me of being deceitful.

I may even be wrong on my data but I can promise everyone on these boards two things.

1. We are pretty busy compared to last year. It is allot different!
2. I would never intentionally deceit anyone.


Bobby,

You may be busier now than at this time last year (is that lookers or buyers), but if so, you are one of the very lucky ones. True there was a bit of a surge in the late spring/early summer, but in August and September (and looks like October too), sales are much, much slower again than they were in 2006 which was much, much slower than 2005. Even though it has not come to a literal standstill as you said, sales are in the tank (and they have been for well over two years now) here just like they are virtually everywhere in the country/world. You have a very positive spin (not deceitful) on the market which you should as your business is real estate. But, the honest, no spin story is that the housing market in SoWal and elsewhere is not in good shape.
Bobby J avatar
Beach Fanatic
#60
Bobby,

You may be busier now than at this time last year (is that lookers or buyers), but if so, you are one of the very lucky ones. True there was a bit of a surge in the late spring/early summer, but in August and September (and looks like October too), sales are much, much slower again than they were in 2006 which was much, much slower than 2005. Even though it has not come to a literal standstill as you said, sales are in the tank (and they have been for well over two years now) here just like they are virtually everywhere in the country/world. You have a very positive spin (not deceitful) on the market which you should as your business is real estate. But, the honest, no spin story is that the housing market in SoWal and elsewhere is not in good shape.


Fisher,

I agree with you. This thread changed after I posted that the market was not as bad as the media portrays. Our office seems to stay quite busy and my team has been doing quite well. Buyers seem to find us. Maybe that has distorted my take on the market. I simply pointed out to my client his take on the market by doing a simple exercise of asking him how many units he thinks sold in a certain area. We both were pretty shocked. I then get attacked by the "doom and gloom" gallery.

I try to look at things in a positive way in everything I do. Personally, I am having real tough times holding what I own but I feel we are all going to be OK with whatever happens. I feel allot of folks on this board in the RE section are very bitter towards agents and I just try to keep a good word going. We need it. The media beats us up plenty.

I put together a contract the other day for a lady that broke down and starting crying once the contract was executed. She has wanted to live in SOWAL her entire life and is nearing retirement. During the big jump in value she felt she lost her chance to own in paradise. We sold her a home in Seabreeze. She got an amazing deal! I guess this could not have happened for her if the market was not in the tank.... It has been one of my favorite sales ever and has reminded me what this is really all about. She perceives this as a GREAT market and looks forward to making SOWAL her new home. Its all about perception....
DuneAHH avatar
Beach Fanatic
#61
Bobby, I for one, appreciate your positive attitude & perception :D
Beach Fanatic
#62
Fisher,

I agree with you. This thread changed after I posted that the market was not as bad as the media portrays. Our office seems to stay quite busy and my team has been doing quite well. Buyers seem to find us. Maybe that has distorted my take on the market. I simply pointed out to my client his take on the market by doing a simple exercise of asking him how many units he thinks sold in a certain area. We both were pretty shocked. I then get attacked by the "doom and gloom" gallery.

I try to look at things in a positive way in everything I do. Personally, I am having real tough times holding what I own but I feel we are all going to be OK with whatever happens. I feel allot of folks on this board in the RE section are very bitter towards agents and I just try to keep a good word going. We need it. The media beats us up plenty.

I put together a contract the other day for a lady that broke down and starting crying once the contract was executed. She has wanted to live in SOWAL her entire life and is nearing retirement. During the big jump in value she felt she lost her chance to own in paradise. We sold her a home in Seabreeze. She got an amazing deal! I guess this could not have happened for her if the market was not in the tank.... It has been one of my favorite sales ever and has reminded me what this is really all about. She perceives this as a GREAT market and looks forward to making SOWAL her new home. Its all about perception....

You are doing your job and I imagine you are good at what you do. Just like any profession, medical, accounting, legal, real estate, etc, you will have some bad eggs out there that will try to distort the truth for personal gain. I don't believe you or any of the other realtors on this forum fit into that category. Your job is to sell property. Go get'em.
scooterbug44 avatar
SoWal Expert
#63
YTD August Real Trend Report for Walton County--

Home sales down 14%, BUT average sales price UP 11%

Condo sales up 4%, AND avg sales price UP 39%

Lot sales down 50% and avg price down 13%

Volume was slowing through August, and I believe September will show a huge decrease across the board versus last year. However, it is encouraging to see that prices are actually up on average for homes and condos. Raw land continues to be a very tough sell.

This is just compared to the previous month?

Seems consistent with what I am hearing - the stuff moving seems to be the higher end properties that consistently hold their value due to location, not the homes whose value was overinflated by the "bubble".

IMO lot sales is a combination of an overdue price correction and a much needed reality check as to the true market worth of wetlands with no utilities, abandoned cars or appliances, and a meth lab down the street ;-).

If someone has the access to the info/free time I'd love to see a breakdown that includes the percentage of "sales" that are really pre-construction condo, foreclosures etc. as opposed to "real sales" (for lack of a better phrase). I know properties are still selling, but overall it seems that they are selling for far less than the owner would like and the data gets a little murky with the above mentioned items mixed in.
Capricious avatar
Beach Fanatic
#64
"If someone has the access to the info/free time I'd love to see a breakdown that includes the percentage of "sales" that are really pre-construction condo, foreclosures etc. as opposed to "real sales" (for lack of a better phrase). "




Dig deep enough and you will eventually uncover
the septic tank

(just made that up- will have to write it down)
Beach Fanatic
#65
This is just compared to the previous month?

.

No, the real trend report numbers I quoted are August 2007 year to date figures compared to August 2006 year to date numbers. Shows how the market is doing compared to the prior year--not the prior month.
scooterbug44 avatar
SoWal Expert
#66
No, the real trend report numbers I quoted are August 2007 year to date figures compared to August 2006 year to date numbers. Shows how the market is doing compared to the prior year--not the prior month.

Thanks for the clarification!

Are the increased condo sales/prices mainly a result of units being completed with pre-construction sale prices that were set in 2005 or 2006?
Beach Fanatic
#67
Thanks for the clarification!

Are the increased condo sales/prices mainly a result of units being completed with pre-construction sale prices that were set in 2005 or 2006?

That would be my guess, but that's all it is.

You would need to ask one of the realtors with better access to data to answer the question for you.
Seagrove Lover avatar
Beach Lover
#68
Bobby J is a least real and knows most things turn around or have silver linings. The Bubble was real, but was not the end of the world for most. Just as the bubble developed, before 2004 things were relatively normal for growth. I expect after the crisis which was only for a few folks, the SOWAL area will be strong again with regular growth. Probably the beach in general will recover. Bobby J just talks sensibly and that is a breath of fresh air.

Others that are sensible probably just don't have much time or take much stock in an open forum with anyone wanting to pile-on; being able to.

Life goes on for most of us.

Just a few thoughts to those who know who you are!:D

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