Posts Tagged ‘RealtyTrac’

Home sales fall, despite uptick in 1st-time buyers

First-time homebuyers rise but not enough to lift the weak housing market

ap

Derek Kravitz, AP Real Estate Writer, On Thursday May 19, 2011, 3:56 pm EDT

WASHINGTON (AP) — Fewer people purchased previously occupied homes in April, a troubling sign that the weak housing market remains a drag on the economy.

Sales fell 0.8 percent in April to a seasonally adjusted annual rate of 5.05 million units, the National Association of Realtors said Thursday. That’s far below the 6 million homes a year that economists say represents a healthy market.

Purchases made by first-time homebuyers did increase but not nearly enough to signal a housing recovery is on the way. First-time buyers are critical because they typically improve their properties and invest in their communities, a combination that helps home values rise.

Foreclosures, on the other hand, force prices down. They represented more than a third of all sales in April and more are expected in the months ahead.

Since the housing boom went bust, sales have fallen in four of the past five years and hit a 13-year low last year. Declining home prices and low mortgage rates haven’t been enough to boost sales this year.

Some who want to buy can’t, mostly because banks have tightened lending requirements and are insisting on larger down payments. Many buyers who can qualify for loans are holding off. They are worried that home prices have yet to bottom out.

Economists say it could be years before the housing market fully recovers.

A growing problem is that some sales that are under contract are falling apart. A separate survey from the trade group found 11 percent of Realtors said a contract was canceled because an appraisal came in below the negotiated price. And 14 percent said a contract was renegotiated to a lower price because of a low appraisal.

The median sales price in April was $163,700. That’s down 5 percent from the same month one year ago. The median price of a new home is now nearly 31 percent higher than the median price for a previously occupied home — or twice the normal markup.

The gap is largely because of the flood of foreclosures or short sales — when the lender accepts less than what is owed on the mortgage. Those sales are forcing down prices.

Sales of homes at risk of foreclosure fell in April. But they still made up 37 percent of all purchases. And a large number of pending foreclosures are backlogged in the courts or held up by state and federal probes into troubled foreclosure practices by lenders.

A record 1 million homes were lost to foreclosures last year and foreclosure tracker RealtyTrac Inc. expects 1.2 million more will be lost this year.

Another problem for the housing market is the glut of unsold homes. In April, the supply rose to nearly 3.9 million. At last month’s sales pace, it would take more than 9 months to clear those homes. Analysts say a healthy supply can be cleared in six months.

The increase in unsold inventory “should continue to weigh on prices,” said Dan Greenhaus, chief economic strategist at Miller Tabak + Co.

The situation is much worse when taking into account the “shadow inventory” of homes, economists say. These are homes that are in the early stages of the foreclosure process but, because of backlogged courts or the government probes, have not hit the market for re-sale.

The Mortgage Bankers Association said Monday that about 8.3 percent of homeowners missed at least one mortgage payment in the January-March quarter when adjusted for seasonal factors. That’s up 0.7 percent from the previous quarter.

Sales fell across most regions of the country. In April, sales declined 7.5 percent in the Northeast, 1.6 percent in the West and 1 percent in the South. But they rose 5.7 percent in the Midwest.

Article found at: http://finance.yahoo.com/news/Home-sales-fall-despite-apf-1672163469.html?x=0

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Everything You Need to Know About Foreclosure Listings

If you are thinking of purchasing a new residential property or home to live in, then you might want to take a look at your local foreclosure listings through your local directory, or through the internet, such as www.carolpefley.com. Foreclosure is technically known as the legal process wherein an owner’s right to his property is terminated. The most common reason for this is default and other terms and agreements stated in his contract. These properties that undergo a foreclosure are usually sold at public auction. These properties are instantly added to the foreclosure listings of your city or town, the proceeds of which are given and applied to the mortgage debt that the previous owner owed; that is why these foreclosed houses and properties sell quite fast.

You may search for some of these foreclosure listings online at www.carolpefley.com that cater to these foreclosed homes and properties. It is important to know and to understand that the house was put up for sale, being a foreclosed home, because the previous homeowner was not able to pay the mortgage fees imposed on his home. Given this situation, the lender, of course, takes back his property, seeing that he cannot benefit from it. There are various legal steps also that are involved in this sort of dealing and they vary through different states.

When purchasing a home or residential property from the foreclosure listings, there are some steps that you should do before deciding on which one to buy. First, you might want to consider an investigation and thorough search of the advantages of purchasing a foreclosed home. Since there is an urgent need for the bank or lender to recover their investment as soon as possible, foreclosed homes are often sold at huge discounts.

When shopping for homes in foreclosure listings, consider an agent such as myself, at Realty World Platinum who is experienced with the job. This is important because there are some sellers who won’t allow a sale from buyers who are unrepresented. 

Written by Carol Pefley

www.carolpefley.com

Lastly, make sure to check the house for any damages and the like. Do not forget to look for foreclosure listings on www.rwplatinum.com. It would also be a good idea to ask if there are any bargaining opportunities that can save you money as well. There is also a lot of paperwork involved, so get ready for that.

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Fewer local, state homeowners entered foreclosure process last quarter

By Robert Lewis
rlewis@sacbee.com
Published: Tuesday, Apr. 19, 2011 – 11:13 am

The number of homeowners entering foreclosure dropped sharply regionally and statewide last quarter, according to new figures LaJolla-based researcher DataQuick Information Systems released today.

Notice of default filings dropped 19 percent in Sacramento County last quarter when compared to the first quarter of 2010. Statewide the drop was 15.8 percent.

In all 68,239 notices of default – the first step in the foreclosure process – were filed statewide from January through March. That’s the lowest quarterly total since the second quarter of 2007 when 53,493 notices were recorded, according to DataQuick.

“Lenders and servicers have put various temporary holds on foreclosure filings while they work on procedural issues and respond to regulatory and legal challenges. It’s unclear how much of last quarter’s decline can be attributed to market factors and strategic decisions, and how much can be attributed to the formalities of the foreclosure process,” John Walsh, DataQuick’s president, is quoted as saying in a press release accompanying the figures.

The actual number of completed foreclosures – based on the number of Trustee’s Deeds recorded – was up less than 1 percent statewide. In Sacramento County, there were nearly 3,100 foreclosures, an increase of 7.2 percent year over year.

The DataQuick figures come a week after another researcher, RealtyTrac, released its own foreclosure figures. That company also showed a drop in filings. RealtyTrac has, however, taken a pessimistic view of the decline – saying there is a backlog and that there could be a spike of foreclosure activity in upcoming quarters.

To see more DataQuick figures visit the firm’s website at www.dqnews.com.

© Copyright The Sacramento Bee. All rights reserved.

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Foreclosure sales increase in March

March foreclosure sales rose 35.1 percent in California, according to the latest ForeclosureRadar report. 

Notice of Default filings in California rose to their highest level since October 2010, up 17.3 percent month-over-month to 26,615 filing. Notice of Trustee Sale filings declined for the third consecutive month, down 3.3 percent overall from February.  Year-over-year foreclosure filings were down with Notice of Default filings falling 19.7 percent and Notice of Trustee Sale filings dropping 31.0 percent from March 2010. 

After a slow February, foreclosure sales rose with sales Back to Bank (REO) up 28.6 percent and properties Sold to 3rd Parties, typically investors, jumping 61.5 percent. On a daily average basis those increases were just 5.0 percent for sales Back to Bank (REO) sales and 24.3 for properties Sold to 3rd Parties. The average Time to Foreclose continues to climb, up 4.1 percent month-over-month to 302 days, a significant 83.4 percent increase year-over-year, and a new record.

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Foreclosure Sale – How You Can Benefit From It

 A foreclosure sale occurs when a person who takes out mortgage against a property is unable to make his payments as per the schedule and the bank or the lender moves the court to sell the property in order to recover the amount that they are owed. When a mortgage is taken, there is a formal agreement between the buyer and the lender, whereby the lender retains a right over the title of the property until the time that the buyer makes all the payments towards the loan.

 A foreclosure sale benefits the mortgage lender, as it enables him to put the property on the market and utilize the sale proceeds towards recovering the amount due to him. In addition, a foreclosure sale can be beneficial to a prospective buyer who is looking to buy a property. How does it benefit a prospective buyer?

 For a first time owner who is on a budget, his dream home can get bigger if he is able to get it at a cheaper price during a foreclosure sale. Although banks try to make a profit out of foreclosure sales, in times when the real estate prices are in a slump, they may not be able to get the market rate and will be willing to sell it for the best offer. By looking out for properties that are being sold due to foreclosure, a buyer can get a bigger house than he normally would with his budget.

 A foreclosure sale can also benefit an investor who is looking at making gains through investing in real estate. By buying the property at a price lower than market rate, he could hold on to the property until the market picks up, so he can make a profit. Alternatively, he could spend a small amount towards refurbishing or remodeling and then resell at a higher price thereby gaining a significant profit.

 However, before you buy a property during a foreclosure sale, you should make sure that you understand what you are getting into. Evaluate the risks before taking the plunge. In some cases the house would not be open for viewing prior to the auction. Hence, you will not be able to assess the condition of the property and may have to spend a large amount additionally towards repairs. Make sure that you evaluate or get an expert to help before deciding to buy.

Written by Carol Pefley

www.

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