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Wednesday, June 13, 2012

When Will The Banks Release More REOs?

When Will The Banks Release More REOs?

This truly is an amazing real estate market. The propeller heads are calling it a ‘bifurcated’ market. Meaning, 2 extremely diverse sets of circumstances leading to 2 equally extreme results. Earlier today we shared with you a story about the most expensive home sales in the history of all home sales happening in Manhattan…and now this report from Corelogic about Foreclosures.
CoreLogic a leading provider of information, analytics and business services, today released its National Foreclosure Report for April, which provides monthly data on completed foreclosures and the overall foreclosure activity.

Before we get to the Corelogic report lets have a quick review of the state of the housing market from the perspective of distressed real estate:
(These are approximations)
1) 4,000,000 owners have already lost their homes.
2) 6,000,000 owners are currently delinquent on their mortgages and/ or are in some stage of default.
3) 11,000,000 + are currently underwater in their home mortgages.

Here are the facts from the Corelogic report:
* There were 66,000 completed foreclosures in the U.S. in April 2012 compared to 78,000 in April 2011 and 66,000* in March 2012.
* Since the start of the financial crisis in September 2008, there have been approximately 3.6 million completed foreclosures across the country.
* Approximately 1.4 million homes, or 3.4 percent of all homes with a mortgage, were in the national foreclosure inventory as of April 2012 compared to 1.5 million, or 3.5 percent, in April 2011 and 1.4 million, or 3.4 percent, in March 2012.

“There were more than 830,000 completed foreclosures over the past year or, in other words, one completed foreclosure for every 622 mortgaged homes,” said Mark Fleming, chief economist for CoreLogic. “Non-judicial foreclosure markets, like Nevada, Arizona and California, completed two and a half times as many foreclosures over the past year as judicial foreclosure states.”
“The inventory of homes in foreclosure in judicial foreclosure states is growing, but this increase is being more than offset by declining inventories in non-judicial states where the processing timelines to clear a foreclosure are shorter,” said Anand Nallathambi, chief executive officer of CoreLogic. “Nationally the inventory of homes in foreclosure decreased 0.1 percent from what it was a year ago at this time, and has leveled off over the first four months of 2012.”
* The five states with the highest number of completed foreclosures for the 12 months ending in April 2012 were:
California (142,000),
Florida (92,000),
Michigan (60,000),
Texas (58,000)
and Georgia (57,000). These five states account for 48.8 percent of all completed foreclosures nationally.
The five states with the lowest number of completed foreclosures for the 12 months ending in April 2012 were:
South Dakota (62),
District of Columbia (162),
North Dakota (541),
West Virginia (598)
and Hawaii (601).

And perhaps the most telling report are the the five states with the highest foreclosure inventory as a percentage of all mortgaged homes were:
Florida (12.0 percent),
New Jersey (6.7 percent),
Illinois (5.3 percent),
Nevada (5.0 percent)
and New York (5.0 percent).
The five states with the lowest foreclosure inventory were:
(Notice that these states are also the states with the least population density).
Wyoming (0.7 percent),
Alaska (0.8 percent),
North Dakota (0.9 percent),
Nebraska (1.0 percent)
and South Dakota (1.4 percent).
The data in this report represents foreclosure activity reported through April 2012.
SOURCE CoreLogic

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