Discussion in 'General Appraisal Discussion' started by Anne Matthews, Jul 28, 2005.
And those figures don't include:
The turn in the keys and QC the property back to the lender in lieu of foreclosure.
The investor short sales negotiated with the lender in lieu of foreclosure.
The foreclosure bailout new mortgages at VERY easy terms not normally available, even in this very lax mortgage terms times, negotiated by the lender - in lieu of foreclosure.
Those are the ones that would have been in the foreclosure rates 3-5 years ago, but are not in these rates now.
:redface: spelling errors brought to my attention corrected.
Fast price appreciation helps keep foreclosure rates low. Helpful rehabbers will come out of the woodwork to buy your house once it hits the legal notices if they can turn a quick profit by painting and reselling your house before the sheriff comes knocking. Over mortgaged properties in a flat or declining market will keep the rehabbers away allowing more lenders to enter the property management business.
I'm not surprised.
What's really ominous is the rapidly growing number of new listings in the areas that have seen huge appreciation in home values over the past couple of years. You won't see too many news articles about it, but this website posts every one that they can find:
I'd be interested in some feedback from appraisers that work in these areas to hear what their observations are.
I'm surprised Colorado isn't in there. I see a rising # of listing with short sales-about the same as REO properties now.
Can someone tell me how this works. Do some lenders allow a short sale for a certain amount of time, then if it doesn't sell-foreclose?
Interesting how bad news or news made bad sells.
I googled “foreclosure rate” and noted several pages of stories in the last few years about foreclosures “soaring” and reach “crisis levels” and “record-high” levels etc. - there were no reports of falling foreclosures.
The linked article says “rate” but instead says that RealtyTrac (whoever that is) reported a total: 62,000 one month, 67,000 in another month.
I notice more listings also. The stuff that didn't sell five years ago for $500k is listed now for $1.5 million.
Every case is unique. The lender's workout people will estimate the costs of foreclosure; legal fees, depreciation from lack of maintenance, carrying costs for keeping a non-performing loan on the books, etc. versus the immediate loss on a short sale. Nobody really wants to foreclose as it can be very time consuming, costly and often results in a badly trashed property. Much better to try to play nice with the owner and get them out of the properly as smoothly as possible so they don't make off with the bathroom fixtures and electrical cable.
When land that sold for 7-12,000 for more than 40 years jumps to 50,-70,0000+ in 3 months something SHOULD be looked into, A home STREACHED to Appraise for 150 in Jan that sold for 202,000 in March 2005 resells for 298,000 July 2005. Homes purchased in April are being REFI'd in July - August, Lender SHOULD start asking themselves is there a PROBLEM???
Appraisers using the Media statistics to give a 25% Time Adjustment for 3 months difference in Contract /Sales Dates need to be looked at & IMO need to take a couple more courses. More REO's the better, No PUSH to make a ABSURED number & I'll be able to get BACK into R E Investing. Maybe cut 2 more years off from my next time Retirement goal.
Didn't I just see on the national news last night...."record high sales of new homes nationally"???
I have been touting all my liquidation appraisal work for the past year. Even though there are more foreclosures than in past years, that number pales in comparison to the number of sales.
Figures lie...and lier's figure. Bad news sells papers...good news does not. If a community has one foreclosure in 2004 and had two in 2005 that is a 100% increase in foreclosures :rofl:
Kinda like the New England weather you don't like it wait a minute it'll change.
Bad news does sell better, BUT I think it is more of a EVERYONE is trying to figure this Market Out. Got some Super nice REO's, pretty much move in ready, (Priced to high for a turn over, why there REO's) But would be better buys for the 1st time Homeowner than the Brand new 50,000+ more home across the street.