Archive for January, 2009
Surge in Foreclosures is One of the Reasons Why 2008 is the Worst Year of All Time for Silicon Valley
Friday, January 30th, 2009The housing market of the Santa Clara district has had the worst year in 2008 due to the biggest yearly percentage dive in the prices of home in no less than two decades, comprising an immobile mortgage market and a rise in foreclosure properties.
Moreover, 2008 also shed several billion dollars in impartiality off the valley’s housing stock, as most of the regression came in the inflation of home values in a lower-priced market area.
The mean sale cost of every home from last January to December plummeted to 31.8 percent, which is the biggest decline in their series since 1988, according to MDA DataQuick, a real estate research service.
In addition, because of the decrease in number of sales of high-end houses and a swelling number in low-cost vicinities severely damaged by foreclosures in California, the mean price for resale homes was pulled down to $457,000, something that has not happened since January 2002.
Though foreclosures were popular headlines in the South Bay for 2008, the future of the high-end market remains unknown. Even though the market of more expensive homes has declined and median prices in those vicinities are still indefinite, a different property research service named Marcus & Millichap anticipates higher-end prices to remain stable this year. There will be even less subprime loans and assertive sales tactics, so there will be less foreclosure, which leads to fewer sales.
However, anything is possible in the work market, especially in the mortgage market—from “senseless lending to senseless no no-lending” to a drop in prices of high-end homes, says DataQuick.
As things are quite sluggish on the top end, things are speeding up in the bottom part of the market, thanks to the increasing number of foreclosures sale.
But there is still something to be hopeful about amidst these hard times. There are sales at foreclosure prices, according to Stephen Levy of the Center for Continuing Study of the California Economy.
Half of the homes bought all over the Bay Area last December were actually foreclosures, and 41.2 percent of every single home bought in Santa Clara County were foreclosures, compared with only 8 percent of the previous year. The county surrendered the exceptional profits of the past few years in those sales.
Bay Area Home Buyers Take Advantage of Falling Prices Due to Foreclosures
Thursday, January 29th, 2009In December 2008, about half of the 5,171 existing houses sold in San Francisco Bay Area, California were foreclosures. Because of the increase in California foreclosures, home buyers flock to the Bay Area to take advantage of bargain prices.
According to research firm MDA Dataquick’s real estate report, existing single-family houses in the region’s nine counties have a median price of $330,000, representing a 46.8 percent decline from figures of the previous year.
The median market price for all houses, including new homes and condominiums, also declined by to 43.8 percent to $330,000.
The December total of all existing houses increased by a percentage of 69.6 from the 2007 total of 3,049.
Meanwhile, counties with high foreclosure rate in the region have experienced an increased in sales volume. About 1,384 existing houses were sold in Contra Costa, representing an increased of 152.6 percent compared with the December 2007 figures of 548.
In Solano, 623 existing houses were sold, representing a percentage increase of 185.8 from the 2007 figures of 218.
According to the real estate report, each county in the region has experienced double-digit decreases in median prices due to the rapid increase in foreclosures. It estimated that the decline in existing homes’ median price in Contra Costa was 48.4 percent and 11.8 percent for the city of San Francisco.
The median price indicates the point in which 50 percent of the houses were purchased for more and the remaining half for less. However, it does not reflect the change in market values of homes but rather the composition of houses sold.
MDA Dataquick President John Walsh explained the possibility that half of the decrease in the median market price is an issue of market mix and the remaining half a decline in value.
On the other hand, some experts noted that an increasing number of banks are unloading foreclosure properties at bargain prices. Lawton Associates realtor Stephen Bloom said that 100 percent of bargain deals involved bank-owned distressed properties.
Bloom cautions home buyers on purchasing foreclosed properties, saying that these deals have no or lack disclosures.
Tampa Foreclosures – Tips on Buying From the Home Owner
Thursday, January 29th, 2009Many home owners in Tampa are still facing the risk of foreclosure, or are involved in the early stages of foreclosure. While this certainly is not a good time for them, these homes often present probable home buyers some rather good deals.
Buying a home in pre foreclosure could not only get you a good deal, but it could also save the existing home owner from foreclosure. By selling a pre foreclosure home, a home owner can pay his/her lender back, and thereby get the foreclosure proceedings to a standstill. Therefore, in many circumstances, the pre foreclosure home sale results in a win-win situation for the buyer and the seller.
Once the bank informs the home owner of its intent to foreclose, the home owner then has choice of fixing the default in the given time period; or he/she can also try to sell the house. Home owners in pre foreclosure generally sell their homes so that they can repay their lender through the proceeds of the sale.
One big plus point of buying a pre foreclosure home is you’re your interactions are with the owner of the home, thereby bypassing the need to interact with attorneys and agents; though, if at any stage you feel that you require professional help, you can be assured of finding some.
You do need to keep a couple of things in mind while buying a pre foreclosure home. First, go through the County’s public records and see if there are any unpaid property taxes or any other loans that are linked to the house. This is important, as once the house is sold, the new home owner could be liable to clear these dues.
Secondly, it is equally important that you inspect the home that you intend to buy. Some repairs (like structural damage) can be quite time consuming and expensive to fix. Besides, make sure you calculate how much you might need to spend to get the home in the condition of your liking prior to making any offer.
Remember that there are a fair number of homes involved in Tampa foreclosures with new additions to the list constantly being made. Take your time and go through a few options before making your choice.
Georgia Foreclosures – Are you Experienced?
Wednesday, January 28th, 2009The data of a recently released report by one of the country’s leading foreclosure tracking agency has shown that the filings for foreclosure across the nation have increased an unprecedented 81% in 2008. The same report puts Georgia at the eight spot when it comes to foreclosure filings in 2008.
The increased numbers of Georgia Foreclosures, along with the fall in the prices of homes, is prompting many of Georgia’s home buyers into considering buying foreclosure affected homes within the region. Foreclosure sales within the region account for a sizable number of the regions total number of home sales in the recent past.
If you have been thinking about buying a home, looking at the options that Georgia Foreclosures have to offer is definitely a good idea. Looking for these homes has become quite easy with the internet been used far and wide. A large number of websites that offer their members listings of home foreclosures are in place. While some of these websites ask for monthly membership fees, you can also go through websites which offer free listings. The more extensive ones, though, normally ask for a fee, which in most cases, is worth every cent.
You can also approach lending organizations which deal in home loans, as they are quite willing in giving out their lists of foreclosed homes. Getting in touch with real estate agents is also a good idea as they are often privy to locality specific foreclosure listings. News letters and news papers also carry foreclosure advertisements and notices.
Foreclosure homes can be bought in various stages of the process; you can buy a home in pre-foreclosure, at an auction of foreclosure sale, or through the bank/lender post foreclosure.
One thing you should keep in mind, the stage of foreclosure notwithstanding, is that you need to inspect every foreclosure home you intend to offer a quote for. The inspection would tell you about the state of the house, and the extent of repairs it might need. In inspecting a house, look for any structural damage, and also check if the basic amenities are in working condition.
Ideally, in buying a foreclosure home you should go through a number of options before settling in on any one home. With the number of foreclosure homes in Georgia, you can be assured you have a number of options.
An Overview on the Current Trends in New Jersey Foreclosures
Tuesday, January 27th, 2009The New Jersey Housing and Mortgage Finance Agency is all set to administer the Housing Assistance and Recovery Program and the Mortgage Stabilization Program. Mila Jasey, Essex’s assembly member, said that with scores of statewide foreclosures in 2008, the State has to do everything it can to try and keep homeowners in their homes.
The Mortgage Stabilization Program has $25 million to spend in giving loans of up-to $25,000 to lenders and home owners to enable the refinancing of first mortgages that face imminent threats of foreclosure. The Housing Assistance and Recovery Program’s Support Fund has an allocation of $15 million to offer assistance to state certified foreclosure counseling and foreclosure prevention groups.
Creditors are required to notify the local municipalities within which the home is situated prior to initiating foreclosure, they are required to adhere to a six month period of forbearance, in which they cannot take any measure to remove a homeowner/borrower from a home, and they are also required to partake in mediation processes enabling homeowners/borrowers to keep their homes.
Measures such as these are forming the basis of many people opining that the market is set to see some stability, if not by the end of 2008, then at least in early 2009. And with prices in the existing scenario being buyer friendly, an increasing number of people who were previously holding on to their plans of buying homes, are now venturing into the market again.
Many of New Jersey’s prospective homebuyers are considering buying amidst New Jersey foreclosures. The main reason behind this move is that these homes normally sell at prices that are lower than homes unaffected by foreclosure.
One of the most important things you need to keep in mind while buying home foreclosures is that you should inspect every house for which you wish to make an offer. The reason being, you would not want to spend a fortune on repair/renovation costs after buying a home. Remember, there is plenty of professional help when it comes to undertaking home inspection.
With there being an ample supply of foreclosures in New Jersey, you should ideally take some time in going through your options prior to making any decision. Go through as many homes as you are able to before you decide to buy one.
Michigan Foreclosure Homes – Auctions Galore
Tuesday, January 27th, 2009When it comes to home foreclosures, 2008 saw a number of records being set across the nation; and things in Michigan were no different. Metro Detroit has the distinction of having amongst the country’s highest rates of foreclosure, and as per S&P/Case-Shiller’s index for prices of homes, there has been a 20.4 percent drop in home prices within the region in comparing October, 2008 with October, 2007.
While none of this will sound good to a home owner in Michigan, prospective home buyers have something to look forward to.
Close to five hundred Michigan homes are set to face the auctioneer’s hammer soon, with around 460 of these homes being part of bank owned metro Detroit homes. These auctions are scheduled to take place in between the 16th and 18th of January at the Dearborn Inn at Oakwood Blvd in Dearborn.
This is being viewed as a good opportunity to buy discounted Michigan foreclosure homes by many prospective home buyers. Since banks have large numbers of foreclosures on their inventories, they have started discounting the prices of these homes at auctions rather aggressively, and this is primarily in order to reduce the numbers of foreclosed homes from their inventories.
Inspecting these homes is recommended as these homes are to be sold on an ‘as is’ basis, and open days have been organized for this very purpose. Many of these homes have no set reserve price, so sellers of these homes will be open to the best offers that they get. In homes with set reserve prices, bidders would require to meet the reserve price to buy the house in question.
All the homes that are to be out up for auction in this lot have no arrears when it comes to taxes and any other liens, and they all are inclusive of the title insurance as well. Detroit city is home to in excess of 200 of these homes, and the price ranges from $200 – $30,000. The most expensive home on this lot of homes is in Northville, and is estimated at $879,000.
Since there are a number of homes that are to be part of the action, it would be best if you could inspect a few. Once you’ve done so, you would be in a better position to make a decision.
California Foreclosures – A Brief Overview
Monday, January 26th, 2009A recently released report has shown that eighty seven percent of the homes in Victor Valley, California that were sold in December, 2008, were in some stage of foreclosure. This has resulted in an ongoing decline in the region’s homes’ median prices; with home foreclosures being sold cheaply by banks and asset mangers dealing in foreclosed homes, so that their inventories burdens are reduced.
As a result of the same trend, the report says that Stockton has seen a fall of 47% in median prices over a period of one year. In December ’07, the median price was $250,000; and in December ’08, this figure came down to $133,000.
The residential real estate markets in other parts of the State are following a similar pattern; many of the homes being sold are affected by foreclosure, and these homes are selling cheaply. While no home owner is pleased with the ongoing pattern, homebuyers who had their plans on hold are now starting to resume their buying activity, with primary focus on foreclosure affected homes.
If you wish to look for California foreclosures, and since you are reading this online, the best place to start your search is the internet. Go through the scores of websites that would give you listings for California foreclosures. Many of these websites further simplify your search by enabling your search to be based on aspects such as price range, zip codes, etc.
You can also opt to go through a real estate agent / broker / realtor, as they often have access to up to date neighborhood specific foreclosure listings. Getting in touch with lenders/banks which deal in home loans can also get you lists of foreclosure homes that they would have on their inventories. Going through legal publications, news letters, newspapers, etc. can also be of help.
Inspecting a foreclosure affected home prior to making an offer is very important. This is chiefly because these homes could have been left unoccupied for varied periods of time, and it is necessary that you personally see what condition they are in, and whether they are worth the price that is being quoted for them.
With there being no short-supply of foreclosure homes in California, you can do well to exercise some caution and restrain. Go through all available avenues before you pick one to live on.
Miami Foreclosures – A Brief (January ‘09)
Friday, January 23rd, 2009As per figures released in a recent report, Miami foreclosures increased by 18 percent in 2008’s fourth quarter as compared with the third quarter of 2007; however, in comparison with 2008’s third quarter, the fourth quarter saw a fall of 10%. Another report showed that when it comes to nationwide foreclosure rates, Miami was ranked at number eight. Fort Lauderdale and Orlando, also in Florida, featured in the top ten as well.
With the rising number of home foreclosures in Miami, prices too, are continuing to fall. And with foreclosure homes normally selling for cheaper than homes that aren’t affected by foreclosure, many of the region’s probable buyers are looking at foreclosures in Miami as viable alternatives.
Thanks to the extensive use of the internet, looking for Miami foreclosures is now quite easy. You could go through a number of web portals that offer lists of foreclosure homes. Many of these portals would let you search using criteria such as zip-codes, budgets, number of rooms, etc.
You can also choose to employ the services of a real estate professional in looking for a foreclosure home as they often turn out to be great resources for getting foreclosure listings for specific neighborhoods. You can also get in touch with representatives at banks who could give you their lists of foreclosed homes. Going to the local County court can get you lists of home owners who have been served with foreclosure notices.
Since you can buy a foreclosure home in different stages of the process, it is also recommended that you get a fair understanding of the process itself. Again, the internet is a good source for reading up on articles pertaining to the foreclosure process. Homes in the various stages of the process are known to offer discounts, so do not limit yourself to looking at homes from any particular process.
One of the most important things that you need to bear in mind while buying a foreclosure home is that the home needs to be inspected before you make any kind of an offer. With there being an ample supply of foreclosure homes in Miami, it would be best if you took the time to go through as many options as you can.
Florida Foreclosures – An Overview
Thursday, January 22nd, 2009As per recently released figures by a leading foreclosure listings agency, Florida saw a total of 450,588 filings for foreclosure in November, 2008. This, in comparison to a year ago, is an increase by 82%. Filings across the nation during the same period increased at an average of 44%.
With many of Florida’s adjustable rate mortgages (ARMs) set for an increase this year, consultants in the real estate field feel that more homes are going to join the already existent foreclosure home band wagon. Also, with an increasing number of people facing unemployment, more home owners stand to lose their homes.
Even though banks are trying to soften the blow by negotiating repayment terms with home owners, the Office of Thrift Supervision reported that in excess of half the home owner’s who received this assistance in the early part of 2008 have fallen behind in making their monthly payments already.
The large volumes of home foreclosures in Florida has therefore resulted in a steep decline in the prices of homes, as there are a large number of distressed homes are being offloaded in ‘fire-sales’. According to recently gathered data, median home prices in Polk were down 20% in year on year comparisons; in Ocala there was a 12.3% drop; and Gainesville saw a 7.5% drop.
While this obviously isn’t going down very well with the home owners, people who have been waiting to buy homes are now thinking of getting themselves some good deals. With almost every neighborhood in the state being involved in foreclosure, the buyers are indeed spoilt for choices.
If you plan to buy amidst Florida foreclosures, do try to go through all the resources that can be made available. The internet is a great place to begin searching. Foreclosed homes in Florida are part of every major foreclosure listing site, and you should have plenty of options.
Contacting banks and real estate professionals is also a good idea. Going through news papers and news letters to look for foreclosure notices and advertisements can also be fruitful.
With Florida right up there when it comes to filings, second only to California, you have plenty of homes to choose from in buying a foreclosure home. Do your research well, and there is a good chance that you can end up getting a great deal too.
A Brief about Buying Port Saint Lucie Foreclosures
Wednesday, January 21st, 2009A home can be foreclosed upon by the lender through whom the home owner has taken the home mortgage, or by a governmental agency. The reason for the foreclosure could be the home owner’s inability to repay the mortgage or other loans linked to the house, or the inability to pay fines or taxes. Notwithstanding the foreclosure problem in Port Saint Lucie, you should think about buying amidst the Port Saint Lucie foreclosures’ discounted homes.
Your search for Port Saint Lucie foreclosures should involve the use of different resources. You can approach lending institutions as they are often more than accommodating when it comes to sharing foreclosure listings with probable buyers. Taking the assistance of real estate brokers / agents can produce some very good area specific results.
You can also look through a number of websites on the internet that specialize in offering foreclosure listings. Most of these websites let you base your search on parameters such as zip codes and budgets. Also, since most of the prominent websites carry nationwide listings, listings from Port Saint Lucie would feature on most of them. Besides these resources, you can also refer to the foreclosure advertisements and notices that local newspapers and newsletters carry.
If you plan to buy a home that is involved in pre foreclosure, go through public records to find out if any other loan is attached to the home, and also if there are any property taxes left unpaid. This is important because, as the new home owner, you could be held liable to pay these.
A large number of people attached to the foreclosure industry are of the opinion the buying a foreclosed home through a bank/lender is amongst the safest way to buy a foreclosure home. The primary reason behind this reasoning is that banks/lenders usually clear all arrears linked to a home upon foreclosure. Also, since banks/lenders are often in a rush to dispose off their home foreclosures, they are known to offer substantial discounts from time to time.
If you have made up your mind about looking at foreclosure homes in Port Saint Lucie, do make sure that you do your home work well. Go through as many sources and homes before coming to a decision; after all, you wouldn’t buy a home very often.
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