From the trend line it looks like we may have bottomed at this point. Bank REOs and foreclosure has stabilized a bit in the U.S. Some of the hardest hit markets like Nevada has seen the largest decreases overall. You still need to keep in mind we have zero percent interest rates and QE3 in effect that is giving additional support.
I would keep eyes on the labor number most importantly. When people get back to work and feel confident their job is of a more permanent basis, they will want too look for value in the real estate market compared to renting. Regardless this is good news and hopefully we have a positive trending continuing so we can clear the market. New housing starts is another important statistics.
Examiner – Some of the biggest state REO decreases were in Nevada (76 percent), Oregon (57 percent), Virginia (56 percent), Washington (46 percent), Utah (46 percent), Massachusetts (43 percent), Pennsylvania (43 percent), and Colorado (43 percent).
We should be looking at all creative areas to help homeowners go through this restructuring process with the goal of making it as least painful as reasonable possible. At the same time we want to assist the banks in reducing their debt load. Setting more realistic real estate prices are another effect of clearing all the delinquent inventory.
Even allowing homeowners to temporary rent and repurchase the home at a normalized fair market plan would be an equitable option for people who still want to retain their home. Outside of prosecuting crimes that caused this overhang, getting prices and inventory down is a priority at this point. This is a principle that can be applied globally. This is what I would consider real financial innovation, you need a real problem before you can truly innovate in most cases.
USA Today - The number of homes that received an initial notice of default — first step in the foreclosure process — was 6% higher in July than last year, foreclosure listing firm RealtyTrac said Thursday. Filings of initial default notices have increased on an annual basis three months in a row.
Housing Wire – Bank of America, one of the largest lenders in the U.S., has instituted a policy of liquidating as many assets saddled with defaulted loans as possible before repossession, said Matt Vernon, the short sale and REO executive at BofA.
Vernon took the position at BofA in February. He has since announced plans to add 1,000 employees to the short sale staff. BofA currently holds more than 477,000 loans eligible for the Home Affordable Modification Program (HAMP), and has provided more than 600,000 modifications through HAMP and its own programs.
But Vernon said BofA will continue to make the short sale push when he spoke on a panel at REO Expo, being held this week in Dallas.
Short sales accounted for 15.9% of home purchases in January, surpassing the share of other distressed property activity, when real estate owned (REO) properties are measured separately, according to a monthly Campbell/Inside Mortgage Finance (IMF) survey of more than 1,500 real estate agents, conducted by Campbell Surveys.
The share purchases taken up by short sales surpassed the share of move-in-ready REO purchases (13.8%) and damaged REO (13.4%).
Interesting website, nice design. They don’t have the inventory like some of the larger websites but they are just starting so maybe they are in the process of ramping up.
Business Wire - Econohomes, a nationwide direct seller of residential REO properties, has unveiled a powerful new website designed to revolutionize the way investors buy REO property. Built on a robust technology platform, Econohomes’ new site combines superior information on its extensive nationwide real estate inventory with the ability for investors to bundle and purchase groups of REO properties at significant discounts.
Registration and use of the Econohomes.com website to search for and bundle REO properties is free, there are not any subscription fees or foreclosure lists being sold. All properties on the Econohomes.com website are available directly from Econohomes and can be bundled for volume discounts or purchased individually.