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ML
3019 Posts |
 Posted - 08/14/2008 : 06:19:46 AM
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Home Foreclosure Filings Up 55 Percent In July
By REUTERS
Published: August 14, 2008
Filed at 5:59 a.m. ET
NEW YORK (Reuters) - U.S. foreclosure activity in July rose 55 percent from a year earlier as a slump in once-sizzling housing markets forced yet more borrowers to default on their mortgages, according to a monthly report.
Foreclosure filings -- default notices, auction sale notices and bank repossessions -- rose 8 percent from June and 55 percent from July 2007 to 272,171, according to RealtyTrac, which records property in various stages of foreclosure.
That means one in every 464 U.S. households received a foreclosure filing in July, the firm said. Bank repossessions (REOs) rose 184 percent year-over-year. Default notices were up 53 percent, and auction notices rose 11 percent.
"The sharp rise in REOs, combined with slow sales, has resulted in a bloated inventory of bank-owned properties for sale," James Saccacio, chief executive of Irvine, California-based RealtyTrac, said in a statement.
RealtyTrac now has more than 750,000 properties in its active REO database, or about 17 percent of the inventory of existing homes for sale reported in June by the National Association of Realtors, RealtyTrac said.
Among 230 metro areas tracked, Cape Coral-Fort Myers, Florida, registered the highest foreclosure rate. One in every 64 households there received a foreclosure filing last month, more than seven times the national average.
By state, Nevada led the country with its foreclosure rate in July, as one in every 106 households received a foreclosure filing. Foreclosure activity in Nevada rose 15 percent from the previous month and 97 percent from July 2007, RealtyTrac said.
REOs in Nevada jumped 384 percent from a year ago, default notices surged 59 percent and auction notices rose 31 percent.
In California, one in every 182 properties received a foreclosure filing. Florida was third, with one in every 186, while Arizona's rate was one in every 195 properties.
Other states with foreclosure rates among the top 10 were Ohio, Georgia, Michigan, Colorado, Utah and Virginia.
California was first by number of foreclosures with 72,285 in July, up 5 percent from June and 85 percent on a year ago. REOs in California rose 427 percent from a year ago, while auction notices rose 67 percent and default notices were up 34 percent. But default notices declined 4 percent from June.
Foreclosures in Florida rose 14 percent from June and 139 percent from a year earlier to claim the second highest number of properties, at 45,884. REOs rose 678 percent, auction notices were up 180 percent, and default notices doubled.
Ohio was third with 13,457 filings, up 2 percent from June and 1 percent from July 2007. Texas, Georgia, Nevada, Illinois and New York also were in the top 10 for foreclosure filings.
(Reporting by Ilaina Jonas; Editing by Braden Reddall) |
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VVance
2489 Posts |
Posted - 08/14/2008 : 07:37:44 AM
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The CA number is wild...72,285 foreclosures in July??
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hertz
859 Posts |
Posted - 08/14/2008 : 07:48:56 AM
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| The statistics are scary. Not a D & Ger but these numbers are just getting worse and worse. |
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sxassy
231 Posts |
Posted - 08/14/2008 : 09:06:45 AM
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| Is it possible that one of these months the foreclosure numbers will just come to a screeching halt...especially once all the bad 2/28's are purged? Or is the media right in that the broader A paper market is deteriorating along with home prices? |
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Scrooge McDuck
8851 Posts |
Posted - 08/14/2008 : 09:09:00 AM
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this is the worst of the storm passing us by. august numbers will be gross too. i am hopeful to see improvements starting in september. however small the increments, things will begin to get better soon.
i think. |
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ML
3019 Posts |
Posted - 08/14/2008 : 09:12:01 AM
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quote:
Originally posted by sxassy
Is it possible that one of these months the foreclosure numbers will just come to a screeching halt...especially once all the bad 2/28's are purged? Or is the media right in that the broader A paper market is deteriorating along with home prices?
Subprime foreclosures (2/28) are a direct result of increasing payment due to rate adjustment. Prime foreclosures are largely due to negative equity (POA's, neg. am.) or simply folks walking away from huge upside down condition. We have a very long way to go, as the lenders are ratcheting up property dispositions. |
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Scrooge McDuck
8851 Posts |
Posted - 08/14/2008 : 09:14:23 AM
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quote:
Originally posted by ML
quote:
Originally posted by sxassy
Is it possible that one of these months the foreclosure numbers will just come to a screeching halt...especially once all the bad 2/28's are purged? Or is the media right in that the broader A paper market is deteriorating along with home prices?
Subprime foreclosures (2/28) are a direct result of increasing payment due to rate adjustment. Prime foreclosures are largely due to negative equity (POA's, neg. am.) or simply folks walking away from huge upside down condition. We have a very long way to go, as the lenders are ratcheting up property dispositions.
not entirely true. a large protion of the 2/28 and 3/27s never made it to the adjustment period. a large portion defaulted a long long time ago. when the subprime model flipped to flixed rate loans, the people still foreclosed. |
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homebroker@sbcgl
3538 Posts |
Posted - 08/14/2008 : 09:14:29 AM
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| I thought the market was starting to settle down, although it appears from these numbers the problem is escalating to very scary numbers. 72,285 is the size of a decent sized American city population, this crises is growing like an aggressive form of cancer. |
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homebroker@sbcgl
3538 Posts |
Posted - 08/14/2008 : 09:16:29 AM
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The only problem we will have are the option ARM with 5 year recasts, they will hit but nothing like the 2/28 ARM adjustments. CA did a lot of Option ARMs, they may still feel the heat for sometime.
quote:
Originally posted by Scrooge McDuck
this is the worst of the storm passing us by. august numbers will be gross too. i am hopeful to see improvements starting in september. however small the increments, things will begin to get better soon.
i think.
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CoolMtgGuy
3720 Posts |
Posted - 08/14/2008 : 10:07:44 AM
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Some better be careful here to not post anything that suggests things are getting worse or you will be slammed for being gloom and doom persons. These numbers are just ficticious, made up numbers to "pull our chain" some will say. Well, I say that the light you see at the other end of the tunnel is an oncoming train.
Everyone is talking about foreclosures being only those 2/28, 3/27 ARMS and owners who walk away due to value being up less than amount owed on the property.
I suggest that there is another category of people losing, or in danger of losing, their homes due to their inability to make mortgage payments for any of many reasons (eg: loss of job, reduced income from housing-related employment, health-related financial hardships, etc.). Not surprisingly, many in this business cannot see beyond the loan product.
Go ahead, slam me if you wish but there are no encouraging economic statistics out there to back up the overly optimistic posts I see. On the other hand, I respect those who are brave enough to preface their optimistic posts with "I think", "I hope", "Just maybe", etc.
For the record, I hope that I am totally wrong about my assessment of our industry. In fact, we all better hope that I am very wrong!
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ML
3019 Posts |
Posted - 08/14/2008 : 10:16:32 AM
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I would love to tell you "you're FOS" however, you're more right than wrong. This economic downturn will come in waves. First, the real estate/ banking downturn that's now upon us.
The second wave will be in the overall economy either turning down, or more likely failing to grow. Remember, if we don't "grow" at least 3-4 percent a year we're not keeping up with inflation or population growth.
The third wave will be the double edge sword of increased property taxes due to decreased assessments and the ensuing cutbacks of municipal spending on things like infrastructure, ie. roads and bridges. Capital expenditures from large corporations will also be cutback due to decreasing demand. That's how these cycles go! |
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SHABONE
362 Posts |
Posted - 08/14/2008 : 10:17:42 AM
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| We are 2/3rds the way thru the subprimes, next shoe to drop will be Alt A, an even bigger mess. It will get MUCH WORSE before it gets better. Now, with that said, there is still a ****-load of MONEY to be made. Deal with it! |
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ML
3019 Posts |
Posted - 08/14/2008 : 10:20:38 AM
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quote:
Originally posted by SHABONE
We are 2/3rds the way thru the subprimes, next shoe to drop will be Alt A, an even bigger mess. It will get MUCH WORSE before it gets better. Now, with that said, there is still a ****-load of MONEY to be made. Deal with it!
For the first time in my career, over half my biz is REO! Amazing.
And don't forget the banks that hold HELOC's, their losses will be almost .99/1.00. |
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lucky1s
3620 Posts |
Posted - 08/14/2008 : 11:15:58 AM
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The 2/28's and 3/27's only started the chain.
Ihis is a case where shlt rolls uphill, not down. |
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1003s.com
3368 Posts |
Posted - 08/14/2008 : 2:41:50 PM
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What I find a bit shocking, is the volume of foreclosure activity in
upscale Chicago suburbs. Areas where the median income is near 200K,
experience now, some the same problems as lower cost areas.
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sxassy
231 Posts |
Posted - 08/14/2008 : 3:03:21 PM
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quote:
Originally posted by 1003s.com
What I find a bit shocking, is the volume of foreclosure activity in
upscale Chicago suburbs. Areas where the median income is near 200K,
experience now, some the same problems as lower cost areas.
You're completely right! While I have never written a POA I had a lot of high earing so called sophisticated people who thought they were great. And yes, many of them were executives who w-2'd between 150k-200k who thought they were brilliant when they took these loans out in an environment of declinging rates...and now they are totally screwed.
The real money from all this will be made buying up written off 2'nd mortgages on foreclosed properties and perdecting wage garnsihments...a business model I am persoanlly developing as we speak. |
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1003s.com
3368 Posts |
Posted - 08/14/2008 : 3:19:24 PM
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Jon,
on the plus side, it might be a good time to pick up a bargin, in
Oak Brook, Hinsdale, Burr Ridge, ETC.
Interesting business model, they say,
" the best earning are often the result of running head first,
into what others are running from". |
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bmoran
1164 Posts |
Posted - 08/14/2008 : 3:43:27 PM
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| Remember todays foreclosures were decided 6 months ago. All the REO's in my area are getting bought up quick and often over list price. |
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homebroker@sbcgl
3538 Posts |
Posted - 08/14/2008 : 3:47:31 PM
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Was the real verified income average $200,000 a year or is that the stated income average?
quote:
Originally posted by 1003s.com
What I find a bit shocking, is the volume of foreclosure activity in
upscale Chicago suburbs. Areas where the median income is near 200K,
experience now, some the same problems as lower cost areas.
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jaronparkin
328 Posts |
Posted - 08/14/2008 : 3:48:10 PM
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| I think the Banks are holding the foreclosures from months ago and let them out slowly to avoid disaster. These are homes that foreclosed months ago, and are just now being reported. The worst has past, and the US market is correcting itself now. |
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1003s.com
3368 Posts |
Posted - 08/14/2008 : 3:56:56 PM
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quote:
Originally posted by homebroker@sbcglobal.net
Was the real verified income average $200,000 a year or is that the stated income average?
quote:
Originally posted by 1003s.com
What I find a bit shocking, is the volume of foreclosure activity in
upscale Chicago suburbs. Areas where the median income is near 200K,
experience now, some the same problems as lower cost areas.
LOL Brian, census track date I have read. I have no idea what type of
controls, if any, they put into their published data. |
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Bob H
300 Posts |
Posted - 08/14/2008 : 4:05:21 PM
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| Every foreclosed home has to be bought along with every other home on the market. My company is focusing more and more on puchase money and it is paying off. Our purchase pipeline is 50/50 investor and first timers. Upgraders are still in a bad spot but at least they know it so they are not going to list their homes and swell the inventory even more. |
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