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Foreclosure Inventory

According to an article written by Brian Honea along with data from Black Knight Financial Services: There is some good news concerning foreclosure properties as of the end of January 2015, foreclosure inventory year over year in January fell by 31.4%–as good as that sounds, the foreclosure starts were 5.5% increase month over month. The starts were 94,000 for January which was the highest number since December 2013. The number of nationwide properties in pre-sale inventory for January was 815,000 with the 31.4% decline which amounts to 316,000. The delinquency rate (% of loans 30 days or more past due but not yet in foreclosure) was 5.56% in January which is a decline of 1.4% from December and 11.3% from December 2013. The number of delinquent Mortgages in January was 2.8 million which was a decline of 55,000 from December 2014 and 327,000 from January one year ago. The number of properties that were 90 days or more past due but not in foreclosure was 1.12 million, down by 20,000 month over month and 177,000 year over year. In another article from Brian, he states that JWB Real Estate Capital (Florida) has published an online investment property short sale guide which provides information for property owners on foreclosure prevention. Although the legal process varies state by state this guide may be used by property owners who are behind on their payments to help them understand the options and hopefully prevent a foreclosure on their own home. http://www.jwbrealestatecapital.com/can-you-short-sale-an-investment-property/ Thank you Brian for sharing your information with us. Teresa...
REO industry

REO industry

On November 20, 2014 I was included in a webinar that was hosted by the President and CEO of The Five Star Institute regarding the REO industry. Mr. Delgado has vast knowledge of the REO industry and his take on REO’s for 2015 is that they will increase 2%-4% nationally from where they are today. Right now according to his figures at the end of the 3rd quarter of this year the delinquency rate was 6.9% and he sees it decreasing to 6%. The normal rate of delinquency is 3%-4%. In March of 2013 it was projected by some that the immediate danger of foreclosures would be 7.4 to 9.3 million, the actual shadow inventory in Jan 2013 was 2.2 million and in Jan 2014 it was 1.7M, down 23%. As you can see by the two HAMP charts (courtesy of Special Inspector General Troubled Asset Relief Program) the HAMP program had good intentions but it’s not working; Once the year six comes the payment starts to climb due to the adjustable rate mortgage—then you pay the taxes, insurance etc besides. Ouch! Right now according to the chart furnished by the Mortgage Bankers Association, the foreclosure starts are close to what they were in 1995 so they are not going away but hopefully will not rise back to what they were in the recession of 2009-2011 and the chart from the National Association of Realtors show that the reported foreclosed sales this year continues to slide. Finally the chart showing the supply and demand seems to be slowly improving over the recession years but not enough yet to breathe...

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