Friday, December 11, 2009
Foreclosures Slow – Short Sales Rise
The foreclosure tide appears to be subsiding, according to the latest numbers from RealtyTrac. The company said Thursday that foreclosure activity fell 8 percent in November, compared to October – it’s the fourth consecutive month that data has shown a decrease in foreclosure filings.
The numbers show foreclosure filings – default notices, scheduled foreclosure auctions, and bank repossessions – were reported on 306,627 U.S. properties during the month. That figure represents one in every 417 homes in the United States.
Although the month-to-month tallies are showing improvement, the number of homeowners facing the loss of their home still equates to an ocean, and is 18 percent higher than in November 2008. However, last month’s foreclosure numbers are down 15 percent from the all-time high hit in July, and at their lowest mark since February of this year.
James J. Saccacio, CEO of RealtyTrac, says the industry’s efforts to keep people in their homes are paying off. According to RealtyTrac’s data, default notices nationwide in November were down 8 percent from the previous month, while scheduled foreclosure auctions were down 12 percent and bank repossessions were flat.
At the state level, the same usual suspects are still leading the nation in foreclosure activity, but even these hard-hit housing markets are beginning to show signs of improvement.
Here in our neck of the woods, we’re seeing a major increase in calls from homeowners looking to Short Sale their homes. Many have contacted their banks over and over again to find relief from mortgage payments they simply can’t afford anymore. Here’s one recent scenario of a call I had recently:
A homeowner in Woodbridge, VA was upside down on their home-they owed 425K on a property that was now worth only 150K. They also had financial troubles because their ARM had adjusted and increased in payment while their hours had been cut at work and they weren’t able to keep up with the payments. They even were foregoing their medicine to try to stay current with their mortgage and just couldn’t do it any longer. They had contacted a loan modification company who they paid $2500 up-front to help them and they hadn’t heard anything back from them in 5 months! Unfortunately this money is long gone and the loan modification just wasn’t going to happen. We worked with them to list their home as a short sale and they will soon be able to walk away from their home , owe their bank nothing and start over fresh. We expect their short sale to be officially approved by the year.
If you know anyone in a similar situation, we can help! Please contact us before you or your friends spend money up-front to do a loan modification that may never actually happen. We are Certified Home Rescue Experts© and we can help you explore your options in this market. Call me anytime at 703-400-6757.