Archive for 'RealtyTrac'

Foreclosure Numbers Dropping

Foreclosure

The banks are reporting lower foreclosure numbers for the last quarter of 2011. Some of that can be attributed to the robo-signing fiasco and some to the new programs that the banks have put in place to help the home owner keep their home. The banks have become a little more flexible in dealing with these delinquent mortgages mainly because the tactics they were using before simply wasn’t working. You can read more about it here:

 

 

English: Foreclosure Sign, Mortgage Crisis

Florida Foreclosures-Image via Wikipedia

It looks like the enormous logjam of foreclosures in Florida isn’t going to be cleaned up anytime soon. With almost 400,000 cases backlogged at this time and more coming in every day, some are estimating that it may be ten years before this mess is completely cleaned up. There’s enough finger pointing going on as it is with regard to who is responsible, but now the homeowners themselves have figured out a way to delay the process even more, insuring that they can stay in the house for up to a year longer.

Florida courts continue to struggle with a backlog of more than 368,000 pending cases, according to Jane Bond, a Florida foreclosure attorney at McCalla Raymer. It’s a nightmare, attorneys say — one with no end in sight.

“It’s not as bad as it seems. It’s much, much worse,” said David Rodstein, a foreclosure attorney with the Rodstein Law Group.

Bond and Rodstein chaired a panel at the Mortgage Bankers Association annual mortgage servicing conference in Orlando, Fla. The state is suffering from an ailing housing market. Home prices dropped 41% from 2006. Nearly half of all borrowers are underwater. Distressed properties abound. Unemployment is at 9.9%. And as it tries to clear the backlog of foreclosures, the state is going nowhere fast.

“The judges are frustrated. The attorneys are frustrated. The servicers are frustrated. Everyone is frustrated,” Bond said.

The average foreclosure in Florida takes nearly 800 days to complete, more than twice the national average, according to RealtyTrac.

Rodstein said 40% of foreclosures filed by servicers are contested by the borrower because of a very efficient bar system in the state. It’s helped create a cottage industry of delays, displacing an earlier system not any fairer.

“Borrowers can hire these attorneys for a small monthly payment — much less than the mortgage — and the attorney can come in and easily delay the case for year plus,” Rodstein said.

But the delay recently has much to do with some attorneys’ own mistakes.

Source

The story of Florida’s foreclosures will be one for the History books. The final chapter hasn’t been written yet and won’t be for a long time.

 

Foreclosure Numbers Lowest in the Better School Districts

Maybe you’ve been thinking about buying a house in foreclosure and even though you have some money saved you still need to find a really good deal. If you’re at the point that you’re actually looking at these houses, you start to notice that most of these properties are in marginal neighborhoods. Now, that may be OK for the investors but you have kids and plan on living in the house and don’t want to send your kids to those school districts. A new study just released addresses this situation.

Highly ranked school districts may have been spared the worst of the foreclosure crisis, according to a new analysis, showing that the housing crash was akin to a tornado that tore through wide swaths, but hit with particular force in certain areas.

The analysis, conducted for Developments by Location Inc., a Worcester, Mass.-based company that mines local data for businesses and consumers, looked at six months of 2011 sales data collected by RealtyTrac Inc. It showed that the percentage of foreclosure (or “real-estate-owned”) sales went down as the school ranking went up in five metro areas – Jacksonville, Fla; Atlanta; Toledo, Ohio; Stockton, Calif.; and Seattle. Higher-rated school districts also maintained higher home-sale prices, and higher home prices per square foot.

“If you are looking to buy into one of these good school districts, it is very rare to find a foreclosure,” said Location Inc.’s chief executive Andrew Schiller, an expert in demographic analysis who conducted the research with his colleague Jonathan Glick. “It’s better to just go into a normal sale.” (The five cities were chosen to provide a general market overview.)

The finding is, to a certain extent, not a surprise. Schools have long been a driver for home buyers, whether in determining location or timing. So it would make sense that school ranking could serve as a kind of proxy for measuring the damage from the foreclosure crisis.

It’s also not that foreclosure sales don’t exist in highly ranked districts; they are just much less of a factor, and the reason could be income. Stan Humphries, chief economist for real-estate data company Zillow, said that it’s “likely both educational outcomes and foreclosures are ultimately linked to income, not to each other.”

The upper tier of homeowners saw less of an impact from the housing crash than the bottom tier, according to Mr. Humphries; the top third of homes dropped 26% from the recent high point; the bottom third of homes in value fell 37%. Some sought-after neighborhoods probably saw less severe price erosion, which in turn helped sustain property taxes and protect a vital funding source for schools.

Mr. Schiller said he sees school quality as both a result and a driver of income concentrations in parts of metropolitan areas. “Once in place, the higher-quality school systems reinforce this, causing higher demand for properties there, and higher values.”

Good schools may also be one of few factors keeping buyers in certain markets today, further bolstering prices and property-tax bases in sought-after districts like Newton, Mass. and Cupertino, Calif., said Glenn Kelman, chief executive of the online brokerage Redfin. “People always want to live in those school districts,” Mr. Kelman said. “And those school districts have remained well-financed even as neighboring districts have to cut costs.”

Source

So, while it’s true that even million dollar houses sometimes go through foreclosure, it doesn’t happen that often. But when it does, the competition level goes way up and you won’t be buying that house for a mere pittance. Unless you have a lot of time and money, you’re better off with a traditional sale.

Foreclosure Attorney Files Suit Against Bank of America for Alleged Scheme

Foreclosure Attorney Files Suit Against Bank of America for Alleged Scheme-Image via Wikipedia

Lawsuit filed on behalf of homeowners allegedly injured by the mortgage practices of Bank of America.

On Wednesday August 17, 2011, United Foreclosure Attorney Network (UFAN) filed suit in Superior Court in Sacramento, CA (case number 34-2011-00109314) on behalf of over 100 homeowners against Bank of America and others alleged by Plaintiffs to be involved in a scheme to defraud and otherwise take advantage of American homeowners.

According to UFAN’s managing attorney Kristin Crone, “This is a chance for homeowners to fight for their rights. And, it will be a fight.” The complaint details how a vast number of homeowners nationwide are facing mortgage debts far greater than the value of their homes. Some homeowners lost what equity investments they had in their homes when the housing market crashed.

The lawsuit levies blame for the crash of the mortgage market against big banks and mortgage lenders. According to the complaint, between 2000 and present, mortgages were packaged up in pools and the pools were sold to investors. Because a bank could quickly recoup amounts spent issuing mortgages by the sale of these pools of mortgages (otherwise known as Residential Mortgage Backed Securities, or RMBS), the banks incentivized mortgage brokers and lending institutions with high fees for origination (yield spread premiums, origination fees, and discount fees). These fee incentives encouraged the origination of highly predatory loans to individuals who could not afford the loans long term, the complaint alleges.

The complaint alleges that the terms of the loans were complex and difficult to understand even for sophisticated borrowers. Many of the loans had a two to five year period of a low fixed interest rate and interest only payments. Most homeowners were promised a refinance prior to the increased payments due at the end of the fixed rate period. But, when the time came to refinance, despite the fact that the financial situation of the borrower many times remained the same, no refinance was given. In some instances, refinances or “loan mods” were granted but they actually increased the borrower’s monthly payment and/or required a large cash payment up front of $10,000 or more.

Court documents show that the lead Plaintiff in the case, like many others, was told by Bank of America to stop her mortgage payments in order to be considered for a loan modification. The homeowner stopped her payments and began negotiations for more fair terms with the bank. Smartly, the homeowner saved money so she could bring her loan current if negotiations were not fruitful. The complaint alleges that she was promised her home would not be foreclosed while she was being considered for a loan modification. She told bank representatives that she could bring her loan current if it was going to sell. Court documents show that the bank promised her the foreclosure would be postponed. It was not. This client has now permanently lost her property to a third party buyer.

UFAN plans to bring claims against all of the major banks on behalf of homeowners within the next few months. “Our clients want to fight for their rights and they are just asking for a fair shake,” says Ms. Crone. “We are trying to give them the chance to be heard and to try to stay in their homes under reasonable loan terms. The banks have been giving everyone the runaround through loss mitigation departments that repeatedly lose documents and claim to work with homeowners while selling their homes out from under them. Filing suit was a last resort for many of our clients, but the bank made it seem as if it was the only way to really get their attention.”

ABOUT UNITED FORECLOSURE ATTORNEY NETWORK

The United Foreclosure Attorney Network (UFAN) is a Roseville, California-based law firm practicing on the cutting edge of mortgage fraud and foreclosure defense. UFAN represents clients who have been victims of predatory lending and/or wrongful foreclosure. The dedicated attorneys and staff at UFAN work tirelessly to seek justice for fraudulent mortgage practices and fight for the rights of American homeowners. For more information call toll free 1-866-400-4242.

This release may constitute attorney advertisement. The information in this release and on the United Foreclosure Attorney Network (TheUFAN.com) website is for general information purposes only. Nothing in this release or on the United Foreclosure Attorney Network (TheUFAN.com) website should be taken as legal advice. Prior successes are no guarantee of future performance. Litigation is inherently uncertain and results in litigation are never assured.

Inman News™ just released their exclusive Special Report: 10 Best Markets for Real Estate which examined housing, demographic and economic data for hundreds of metropolitan areas nationwide.

Inman News™ just released their Special Report: 10 Best Markets for Real Estate Investors. This exclusive report examined housing, demographic and economic data for hundreds of metropolitan areas nationwide in developing a list of 10 markets that may be best suited for house-hunting investors.

The analysis considered markets with high affordability, low and dropping prices, a high market share of foreclosure sales, high population growth, an improving unemployment rate that is close to or better than the national average, high projected return on investment (ROI) over the next decade, and a low total cost of ownership-to-rent ratio.

The 10 markets are, in order: Indianapolis-Carmel, Ind.; Winchester, Va.-W.Va.; Gainesville, Fla.; Tucson, Ariz.; Tallahassee, Fla.; Hagerstown-Martinsburg, Md.-W.Va.; Salt Lake City; Richmond, Va.; Gainesville, Ga.; and Winston-Salem, N.C.

Seven out of the 10 markets are in the South, two are in the West, and one is in the Midwest. None of the markets are in the Northeast.

According to the report, investors tended to be more confident about the housing market than primary homebuyers: 77 percent of investors said “now is a good time to purchase real estate,” compared with 68 percent of primary-home buyers. “Historically speaking, whenever economics favored buying rather than renting, or … were about even, people favored buying because of the perceived benefits of homeownership,” said Rick Sharga, senior vice president of foreclosure data site RealtyTrac.

The selection and analysis of the top 10 markets for real estate investors included economic, housing and demographic data from a variety of sources. The report used U.S. Census Bureau figures for population growth between 2000 and 2010, and Bureau of Labor Statistics unemployment data.

The report also utilized affordability data from the National Association of Home Builders and median sales price data from CoreLogic, via NAHB. The median price data includes attached and detached residential properties and multifamily structures with up to three units. The data are sourced from public records.

To view the complete report along with a detailed account of the methodology, please visit: http://www.inman.com/reports/10-markets-invest/index.html. A free PDF copy of the report is available on the web site. Members of the press interested in additional information can contact press (at) inman (dot) com.

About Inman News
Inman News (http://www.inman.com) is the leading source of independent real estate news, information, advice, research, technology, opinion and commentary for industry professionals and consumers alike. Inman’s award winning, unbiased and hard-hitting stories are known throughout the real estate industry. Agents and brokers globally trust Inman News as their first source of accurate, innovative and timely daily real estate news. For more information, visit http://www.inman.com.

Media Contact:
Katie Lance
(510) 658-9252 x147
katie(at)inman(dot)com

Foreclosure Numbers Rise and Fall

ForeclosureListings.com has noticed falling and rising trends in foreclosures in recent months. Why? When the supply of homes outweighs the demand for them, the prices shrink. When the values are attractive enough to investors with enough money to withstand the smaller return on the investment, the supply is reduced and the prices sustain at a present level until the next surge of depressed properties are on the market available at discounted prices.

This cycle of surges of many available discounted homes in foreclosure and the purchasing of them continues similar to the stop-and-go of traffic at the change of lights from red to green and back. 

ForeclosureListings.com reports that Phoenix, Arizona, is the top city in foreclosure rates. But since March of 2011, the number of foreclosure listings is falling in a huge proportion, reflecting the surges of foreclosed properties on the market after months of processing the paperwork and verifying information:

March: 1.168 listings
April: 1.081 (-7.45%)
May: 980 (-9.34%)

Miami, one of the largest cities in Florida, has also registered a fall of listings for this time period:

March: 600 listings
April: 516 (-14%)
May: 404 (-21.7%)

Orlando and Fort Lauderdale also have falling numbers since March, giving the impression that Florida is leaving the crisis. But the foreclosure slowdown is largely the result of massive delays in processing foreclosures and not the result of a housing recovery. The foreclosure slowdown is being received apathetically; banks continue to stall home repossessions, and several of Florida’s major foreclosure processing law firms left the business.

Atlanta, the capital city of Georgia, was only in the 6th position in the top10 of foreclosure listings in March. The following months were only of rising numbers:

March: 387 listings
April: 499 (+28.9%)
May: 635 (+27.2%)

Another example of a rising foreclosure situation is Aurora, one of the top cities in Colorado. Aurora is a place with over twice as many foreclosure listings as Atlanta, Georgia:

March: 1092 listings
April: 1152 (+5.49%)
May: 1365 (+18.8%)

Tucson, another big city in Arizona, is also showing similar numbers, contrary to Phoenix:

March: 424 listings
April: 437 (+3.06%)
May: 488 (+11.6%)

Foreclosures account for around 40 percent of total home sales in Tucson now. Tucson was one of the cities hit hard and fast at the beginning of the housing meltdown, and will likely be one of the first to bottom out and rebound. A buyer can pay $325 per month for a two-bedroom home if they can get approved for financing, for example, due to the depressed prices that have leveled the number of homes that have already been processed. This indicates a swing in the trend from foreclosures to purchases.

CONTACT: Kevin Simpson of ForeclosureListings.com, +1-347-329-4477, kevinsimpson@foreclosurelistings.com

Web Site: http://www.foreclosurelistings.com


U.S. Foreclosure Activity Hits 40-Month Low After Jump in March
REOs Hit Record High in Nevada, Defaults Spike in Massachusetts and New Jersey

RealtyTrac® (realtytrac.com), the leading online marketplace for foreclosure properties, today released its U.S. Foreclosure Market Report™ for April 2011, which shows foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 219,258 U.S. properties in April, a 9 percent decrease from March and a 34 percent decrease from April 2010. The report also shows one in every 593 U.S. housing units received a foreclosure filing during April 2011.

“Foreclosure activity decreased on an annual basis for the seventh straight month in April, bringing foreclosure activity to a 40-month low,” said James J. Saccacio, chief executive officer of RealtyTrac. “This slowdown continues to be largely the result of massive delays in processing foreclosures rather than the result of a housing recovery that is lifting people out of foreclosure.

“The first delay occurs between delinquency and foreclosure, when lenders and services are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales and possibly other disposition alternatives,” Saccacio continued. “Data from the Mortgage Bankers Association shows that about 3.7 million properties are in this seriously delinquent stage. The second delay occurs after foreclosure has started, when lenders are taking much longer than they were just a few years ago to complete the foreclosure process.”

Foreclosure timelines lengthening
Nationwide, foreclosures completed (REOs) in the first quarter of 2011 took an average of 400 days from the initial default notice to the REO, up from 340 days in the first quarter of 2010 and more than double the average 151 days it took to foreclose in the first quarter of 2007.

The foreclosure process took much longer in some states. The average timeframe from initial default notice to REO in New Jersey and New York was more than 900 days in the first quarter of 2011, more than three times the average timeline in the first quarter of 2007 for both states.

The average foreclosure process in Florida took 619 days for foreclosures completed in the first quarter, up from 470 days in the first quarter of 2010 and nearly four times the average of 169 days it took in the first quarter of 2007.

The average foreclosure process in California took 330 days for foreclosures completed in the first quarter, up from 262 days in the first quarter of 2010 and more than double the average of 134 days in took in the first quarter of 2007.

Foreclosure Activity by Type
Default notices (NOD, LIS) were filed for the first time on a total of 63,422 U.S. properties in April, a 14 percent decrease from the previous month and a 39 percent decrease from April 2010. After spiking 16 percent in March, default notices in April dropped back down close to the 48-month low hit in February.

Scheduled foreclosure auctions (NTS, NFS) hit a 31-month low in April, with a total of 86,304 U.S. properties scheduled for an auction for the first time during the month — down 7 percent from March and down 37 percent from April 2010.

Lenders foreclosed on 69,532 U.S. properties in April, down 5 percent from March and down 25 percent from April 2010, but bank repossessions (REOs) were still above a 22-month low hit in February 2011.

States with a judicial foreclosure process registered a 3 percent decrease in overall foreclosure activity from March and a 47 percent decrease in overall foreclosure activity from April 2010. States with a non-judicial foreclosure process posted an 11 percent month-over-month decrease and 26 percent year-over-year decrease in overall foreclosure activity.

Nevada, Arizona, California post top state foreclosure rates
Nevada posted the nation’s highest state foreclosure rate for the 52nd straight month in April, with one in every 97 housing units receiving a foreclosure filing during the month. Overall foreclosure activity in Nevada decreased 9 percent from the previous month and was down 27 percent from April 2010. Bank repossessions increased 23 percent from March and were up 12 percent from April 2010 to 4,606 — an all-time monthly high since RealtyTrac began issuing the report for Nevada in April 2005.

Arizona REOs decreased 3 percent from March but were still up 22 percent from April 2010, helping the state maintain the nation’s second highest foreclosure rate for the fifth consecutive month. One in every 205 Arizona housing units received a foreclosure filing during the month, and overall foreclosure activity decreased 15 percent from March and was down 17 percent from April 2010 despite the year-over-year jump in REOs.

Overall, foreclosure activity in California was down monthly and annually in April, but a 22 percent month-over-month jump in REOs helped keep the state’s foreclosure rate at the third highest among all states for the sixth consecutive month. One in every 240 California properties received a foreclosure filing in April.

One in every 322 Utah housing units received a foreclosure filing in April, the fourth highest state foreclosure rate, and one in every 325 Idaho housing units received a foreclosure filing in April, the fifth highest state foreclosure rate.

Other states with foreclosure rates ranking among the top 10 in April were Michigan, Florida, Georgia, Colorado and Oregon.

10 states account for 70 percent of total foreclosure activity
Ten states accounted for 70 percent of U.S. foreclosure activity in April, led by California with 55,869 properties receiving a foreclosure filing during the month.

A total of 19,649 Florida properties received a foreclosure filing in April, the second highest state total despite a 59 percent decrease from April 2010. Florida overall foreclosure activity in April was still up marginally from a 46-month low set in February, and default notices and scheduled auctions increased from March.

Arizona tallied the third highest state total, with 13,419 properties receiving foreclosure filings in April, followed by Michigan, with 12,996 properties receiving foreclosure filings, and Nevada, with 11,761 properties receiving foreclosure filings.

Other states with foreclosure activity totals among the nation’s 10 highest in April were Illinois (10,055), Texas (8,793), Georgia (8,479), Ohio (7,962) and Colorado (4,379).

Top metro foreclosure rates
Las Vegas continued to post the nation’s highest foreclosure rate among metropolitan areas with a population of 200,000 or more, with one in every 82 housing units receiving a foreclosure filing in April — more than seven times the national average.

Another Nevada metropolitan area with a foreclosure rate in the top 10 was Reno-Sparks at No. 9, with one in every 183 housing units receiving a foreclosure filing in April.

Seven of the 10 highest metro foreclosure rates were in California cities, led by Modesto at No. 2, with one in every 136 housing units receiving a foreclosure filing in April. Other California cities in the top 10 were Stockton at No. 3 (one in every 138 housing units), Riverside-San Bernardino-Ontario at No. 4 (one in every 145 housing units), Bakersfield at No. 5 (one in every 151 housing units), Sacramento-Arden-Arcade-Roseville at No. 6 (one in every 166 housing units), Vallejo-Fairfield at No. 8 (one in every 175 housing units), and Merced at No. 10 (one in every 195 housing units).

The Phoenix-Mesa-Scottsdale metro area posted the nation’s seventh highest metro foreclosure rate in April, with one in every 168 housing units receiving a foreclosure filing during the month.

Report methodology
The RealtyTrac U.S. Foreclosure Market Report provides a count of the total number of properties with at least one foreclosure filing entered into the RealtyTrac database during the month — broken out by type of filing. Some foreclosure filings entered into the database during the month may have been recorded in previous months. Data is collected from more than 2,200 counties nationwide, and those counties account for more than 90 percent of the U.S. population. RealtyTrac’s report incorporates documents filed in all three phases of foreclosure: Default — Notice of Default (NOD) and Lis Pendens (LIS); Auction — Notice of Trustee Sale and Notice of Foreclosure Sale (NTS and NFS); and Real Estate Owned, or REO properties (that have been foreclosed on and repurchased by a bank). The report does not count a property again if it receives the same type of foreclosure filing multiple times within the estimated foreclosure timeframe for the state where the property is located.

Report License
The RealtyTrac U.S. Foreclosure Market Report is the result of a proprietary evaluation of information compiled by RealtyTrac; the report and any of the information in whole or in part can only be quoted, copied, published, re-published, distributed and/or re-distributed or used in any manner if the user specifically references RealtyTrac as the source for said report and/or any of the information set forth within the report.

About RealtyTrac Inc.
RealtyTrac (http://www.realtytrac.com/) is the leading online marketplace of foreclosure properties, with more than 2 million default, auction and bank-owned listings from over 2,200 U.S. counties, along with detailed property, loan and home sales data. Hosting more than 3 million unique monthly visitors, RealtyTrac provides innovative technology solutions and practical education resources to facilitate buying, selling and investing in real estate. RealtyTrac’s foreclosure data has also been used by the Federal Reserve, FBI, U.S. Senate Joint Economic Committee and Banking Committee, U.S. Treasury Department, and numerous state housing and banking departments to help evaluate foreclosure trends and address policy issues related to foreclosures.

 

Florida Short Sales and Foreclosures- New Details

Florida Short Sales and Foreclosures- New Details

Florida Short Sales and Foreclosures- New Details-Image by Getty Images via @daylife

Kevin Dickenson is a Palm Beach real estate agent with Prudential Florida Realty and an expert in Florida foreclosures and short sales. Mr. Dickenson is in the top two percent of 64,000 Prudential realtors nationally and has compiled the top 20 most frequently asked questions from buyers and sellers considering a short sale

1. Are foreclosure websites like RealtyTrac accurate?

“I signed up a month to try it out and discovered that homes listed under the bank owned category were often nothing more than contractor or HOA liens,” said Dickenson. “The data is seriously flawed in my opinion.”

2. What is a short sale?

A short sale occurs when a borrower owes more than the home is worth and submits a request to the lender for a discounted payoff.

3. What is a lis pendens?

A lender will file a lis pendens (lawsuit) against a borrower typically after 3 months of non-payment. When the suit is filed, the borrower is now in the “pre-foreclosure” phase.

4. What is the best way to buy a Florida foreclosure?

If the home is listed on the MLS, find a good realtor who knows the process and use him as your guide. If the home isn’t listed on the MLS, the borrower will need to be contacted because they are in control of the property until the home is foreclosed. Keep in mind that borrowers in default may be very difficult to get in touch with.

5. Can a buyer contact the bank to buy the home after the lis pendens is filed?

Only the deed holder has the authority to sell the home prior to a final judgment of foreclosure. The lender will not talk to any third party unless the borrower has given the individual written authorization. Another option is for the lender to sell the note, but most banks don’t want to be bothered with a single small transaction.

6. Is the bank obligated to accept the contract price agreed to?

No. If an owner accepts a short sale offer, the contract MUST be contingent upon the lenders agreement to a discounted payoff and there is absolutely NO guarantee the lender will agree. The lender will hire a real estate agent or appraiser to perform a “broker price opionion” (BPO) to determine fair market value. Be prepared for a counter from the lender if the offer price is low.

7. What does the borrower need to supply to qualify for a short sale?

The bank will require a lot more documentation to discount the loan compared to what was supplied to obtain the loan. The lender will typically request two years tax returns, the last 3 pay stubs, a financial statement, four months of bank statements and a hardship letter as a minimum. Banks employ forensic accountants to make sure the borrower is in true financial hardship and keep in mind that a lot of people borrowed money for homes they couldn’t afford using no-doc stated income loans. A borrower who misrepresented income may refuse to provide the required documentation if it proves fraud. The buyers contract should contain a right to cancel clause if the seller fails to submit a complete short sale package to the lender within 10 days.

8. The offer and short sale package was submitted over four months ago and we haven’t received a response. What’s going on?

Banks are overloaded with short sale requests. If a lis pendens has not been filed, the file is at the bottom of the banks pile. If a final judgment of foreclosure has been filed, this means a court date has been set and the home will be sold at auction in less than 30 days. In this case, the file is at the top of the pile. If the lis pendens is filed, it’s in the pipeline and the buyer should be prepared to wait at least 4 months. A good negotiator should follow up with a buyer every two weeks and buyers will need to be patient.

9. Can a Seller accept more than one short sale offer and submit it to the bank?

The owner can accept a backup offer, but the new Florida FAR/BAR short sale addendum does not allow the seller to submit backup offers to the bank until the contract in first position is cancelled. Make sure your agent is using the most recent contract package and have an attorney review all documents.

10. Who is taking care of the house during the four to twelve months the buyer is waiting for the bank to approve a Florida short sale?

Nobody. Typically, the seller has vacated, the power is off and there is a good chance mold is growing in the home. The pool will turn green and black algae will burrow into the finish. Be prepared for the seller to strip the appliances, ceiling fans and light fixtures. Even worse, some owners will destroy the home out of anger. Make sure the contract provides a right of cancellation.

11. Should a buyer conduct a home inspection after the Seller accepts the offer?

No. It’s best to trigger all key dates (inspections, mortgage commitment, etc) from the date the bank accepts the offer, not the seller acceptance. It’s not uncommon for a house to start growning mold after sitting four to twelve months without air conditioning in Florida.

12. What happens if there is a first and second mortgage?

If there are two different lenders, the lender in first position controls how much is paid to the second lender. The second lender must agree to the amount and the deal is dead if they don’t. If the second lender doesn’t agree, the buyer has two options; (1) buy the second position note or (2) let the first lender foreclose.

13. Is there anything else that can kill the deal while the buyer is waiting for the bank to approve the short sale?

Yes.

A. The IRS can enter the picture and they always take first position (in front of the lenders).
B. The borrower could file bankruptcy.
C. The HOA could foreclose if the owner is delinquent.
D. The bank could refuse to pay the full amount of the delinquent HOA fee, but the buyer always has the option to pay.

14. Can the home be purchased from the court at foreclosure auction?

Yes, but court auctions are AS IS and access to the home for inspection purposes may be impossible. The buyer should also hire an attorney to review the title prior to auction day. Buyer beware!

15. The house was sold by the court at public auction and the bank bought it back. Can it be purchased now?

Yes. The bank has foreclosed and all liens (HOA, etc) have been eliminated. The bank will appraise the home to determine fair market value and it will be (1) listed on the MLS by a Florida bank owned real estate agent or (2) sold in a bulk offering package to investors or (3) listed with an auction company. The home is now an REO (real estate owned) and will be sold AS IS. There is a strong demand for Florida REO homes and they are usually under contract within days. It’s not uncommon to have multiple offers and bidding wars on REO homes.

16. Who pays the realtors commission in a short sale?

The bank will pay the real estate commission. If you have concerns, add a clause stating the sale is contingent upon the lender paying the commission and any unpaid property taxes and liens.

17. Will the borrower be liable for the mortgage deficiency?

There is no guarantee the lender will waive the deficiency. Some lenders require unsecured notes from the borrower while others waive the deficiency in writing. It depends on the bank, the borrower’s financial situation and how good of a negotiator you hired. Dickenson recommends retaining an attorney with a proven track record to negotiate the short sale.

18. Can the house be rented while the borrower is in foreclosure?

Yes, but the owner must disclose the home is in foreclosure. If the lease is executed prior to the filing date of the lis pendens, the foreclosing lender must honor the lease and has the right to evict with 90 days notice. The lender will usually offer the tenant “cash for keys” to vacate after they take possession. If the lease is executed after the lis pendens is filed, the bank has the right to evict the tenant with 30 days notice.

If the home is in a community with a homeowners association (HOA), the board probably won’t approve the lease if the owner is delinquent on HOA fees. Delinquent owners should consider leasing the property and paying the HOA from rental proceeds. “It’s always better to have a tenant in the house rather than letting it sit vacant with the air conditioning off,” said Dickenson.

If the property is a condo hotel, the rental management agreements usually contain a clause allowing the association to use rental proceeds to pay delinquent fees.

19. Can the HOA foreclose if the borrower is delinquent on HOA fees?

Yes, and it’s a fairly simple process because there is usually no defense in this situation. “HOA’s believe it’s easy to rent homes once they take possession, but who’s going to rent a house that could be foreclosed any day by the lender,” said Dickenson.

20. Is there a defense against the lenders foreclosure action?
Go to http://www.Florida-Foreclosure-Assistance.blogspot.com and click the free book Florida Defense Secrets in the right sidebar and then retain a bankruptcy attorney to discuss your options.

“A lot of sellers don’t know where to turn for help and this compelled me to put together the website Florida Foreclosure Assistance,” said Dickenson. The website contains informative news stories, helpful links and live news feeds on Florida short sales and foreclosures.

600 Foreclosed Homes to be Auctioned in Arizona

600 Foreclosed Homes to be Auctioned in Arizona

600 Foreclosed Homes to be Auctioned in Arizona-Image via Wikipedia

Sizzling deals await homebuyers, as a flood of 600 foreclosed homes heads to the auction block in Phoenix, Tucson and Kingman. America’s leading real estate auction firm, Hudson & Marshall will auction the properties November 9th-14th. In a market like Arizona, where housing values have plummeted over the past four years, buyers can score significant discounts on homes purchased through auction because banks are eager to move them off their books.

Valued from $59,000 to $1.6 million, there are a variety of homes for both investor and owner-occupant buyers to choose from and all the homes come with an insurable title. Buyers will be required to make a cash or certified check deposit of $2,500 for each property for which they are the winning bidder. All sales will close within 30-45 days and buyers may secure financing with the lender of their choice prior to closing; however, closing is not contingent upon financing.

“In today’s bruised housing market, it’s a good time for people buy. First time homebuyers or those with looking to trade up for more space can really get more for their money by purchasing homes at auction,” said Dave Webb, principal, Hudson & Marshall.

According to Realtytrac®, the Phoenix-Mesa-Scottsdale area posted the nation’s eighth highest metro foreclosure rate in the third quarter of 2010, with one in every 44 housing units receiving a foreclosure filing. Phoenix also reported 14,317 bank-owned homes during the third quarter, the most of any metro area.

All properties auctioned by Hudson & Marshall are sold “as-is” and buyers should inspect properties before placing any bids. Properties can be viewed during the open house scheduled Saturday, November 6th and Sunday, November 7th from 1:00pm-3:00pm or by contacting listing agents to schedule appointments. Complete property details and additional information may be found at www.hudsonandmarshall.com or by calling 866-539-4172.

Homes will be auctioned on the following dates:

November 9th –Kingman (22 homes) at 7:00pm- Hampton Inn & Suites Kingman

November 10th –Tucson (94 homes) at 6:00pm-Tucson Marriott University Park

November 11th –Phoenix (110 homes) at 6:00pm-Camelback Inn, JW Marriott Resort

November 13th –Phoenix (201 homes) at 1:00pm-Camelback Inn, JW Marriott Resort

November 14th –Phoenix (175 homes) at 1:00pm-Camelback Inn, JW Marriott Resort

Prior to auction, buyers can purchase property online by visiting the website and clicking on the Bid-Now icon. Sellers typically respond to offers within 24 hours. This is a reserve auction, which means sellers have the right to accept, reject or counter any bid; however, in past auctions conducted by Hudson & Marshall, the majority of offers have been accepted.

Having sold over 80,000 homes for sellers in the past ten years, Hudson & Marshall, Inc. is the most experienced, trusted leader in the REO auction industry. The company’s accelerated sales process enables it to swiftly and efficiently sell large volumes of property in a way that minimizes expenses for sellers and maximizes return. Over the past five years alone, Hudson & Marshall’s total sales have topped $2.2 billion and the company anticipates selling another 15,000 homes in 2010.

About Hudson & Marshall of Texas, Inc.

H&M is America’s Premier Auction Authority. Our 45-year history combined with our continued process enhancements have allowed us to become one of the largest and most respected real estate auction firms in the United States. H&M has set the standard as a full service auction company and continues to consistently raise the bar for our industry. Our number one priority is to provide top-quality service to our customers. Buyers know they can count on H&M to provide value and service from the initial property offering through the closing process. This same approach provides sellers with a one stop single solution to the disposition of real estate assets. Sellers particularly appreciate H&M’s streamlined approach that handles their assets from marketing through closing and funding. The H&M process allows the seller to minimize expenses and maximize return. H&M has assisted clients ranging from individuals to large, medium, and small corporations, government agencies, and financial institutions. Since 1999, H&M has sold and closed over 80,000 homes throughout the country. See more about H&M at www.hudsonandmarshall.com.

SOURCE Hudson & Marshall of Texas, Inc.

CONTACT: Crystal Wright, Baker Wright Group, +1-202-829-0848, for Hudson & Marshall of Texas

Web Site: http://www.hudsonandmarshall.com

300 Foreclosures to be Auctioned

300 Foreclosures to be Auctioned

300 Foreclosures to be Auctioned-Image via Wikipedia

In this buyer’s market, where housing inventory runs high, foreclosures remain sought after properties because they can often be purchased at discounted prices.  Buyers particularly enjoy purchasing bank-owned homes through auction because the process is easy, streamlined and transparent. Hudson & Marshall will auction over 300 homes in the Minneapolis/St. Paul area and Milwaukee October 15th-17th.

All the homes up for auction come with an insurable title and no back taxes or liens. Buyers will be required to make a cash or certified check deposit of $2,500 for each property which they are the winning bidder.

“Because many foreclosed properties have been languishing on the market for several months to a year, by the time they reach the auction process, lenders are eager to quickly sell them,” remarked Dave Webb. “While there are always exceptions, on average foreclosed properties can be purchased 15%-20% below the home’s last list price,” added Webb.

According to RealtyTrac, in the second quarter of 2010 the average sales price of foreclosures that sold while in some stage of foreclosure was 26% less than the sales price of non-foreclosure properties. A total of 151,290 bank-owned properties sold to third parties in the second quarter of 2010.

All homes being auctioned by Hudson & Marshall are sold “as-is” and buyers should inspect properties before placing any bids. Properties can be viewed during the open house scheduled Saturday, October 9th and Sunday, October 10th from 1:00pm-3:00pm or by contacting listing agents to schedule appointments. Complete property details and additional information may be found at www.hudsonandmarshall.com or by calling 866-539-4172.

Hudson & Marshall will auction the homes on the following dates:

October 15th – Minneapolis/St. Paul (100 homes) at 1:00pm-Minneapolis Airport Marriott

October 16th – Minneapolis/St. Paul (198 homes) at 11:00am-Minneapolis Airport Marriott

October 17th – Milwaukee (60 homes) at 1:00pm-Milwaukee Marriott West

Prior to auction, buyers can purchase property online by visiting the website and clicking on the Bid-Now icon. Sellers typically respond to offers within 24 hours. This is a reserve auction, which means sellers have the right to accept, reject or counter any bid; however, in past auctions conducted by Hudson & Marshall, the majority of offers have been accepted.

Having sold over 80,000 homes for sellers in the past ten years, Hudson & Marshall, Inc. is the most experienced, trusted leader in the REO auction industry. The company’s accelerated sales process enables it to swiftly and efficiently sell large volumes of property in a way that minimizes expenses for sellers and maximizes return. Over the past five years alone, Hudson & Marshall’s total sales have topped $2.2 Billion and the company anticipates selling another 15,000 homes in 2010.

About Hudson & Marshall of Texas, Inc.

H&M is America’s Premier Auction Authority. Our 45-year history combined with our continued process enhancements have allowed us to become one of the largest and most respected real estate auction firms in the United States. H&M has set the standard as a full service auction company and continues to consistently raise the bar for our industry. Our number one priority is to provide top-quality service to our customers. Buyers know they can count on H&M to provide value and service from the initial property offering through the closing process. This same approach provides sellers with a one stop single solution to the disposition of real estate assets. Sellers particularly appreciate H&M’s streamlined approach that handles their assets from marketing through closing and funding. The H&M process allows the seller to minimize expenses and maximize return. H&M has assisted clients ranging from individuals to large, medium, and small corporations, government agencies, and financial institutions. Since 1999, H&M has sold and closed over 80,000 homes throughout the country. See more about H&M at www.hudsonandmarshall.com.

SOURCE Hudson & Marshall of Texas, Inc.