Foreclosures and bank owned real estate
problems continue to affect most areas of Indiana as efforts to bring borrowers and lenders to the table for a negotiation remain largely ignored. According to housing reports, a big number of troubled homeowners are not taking the opportunity to meet with their banks to negotiate for an alternative to foreclosure.
Court-supervised meetings between lenders and homeowners have been put in place in the state to control the rising number of Anderson bank owned homes
and foreclosed properties all around the region. However, homeowners are reportedly not too keen in taking advantage of the chances to negotiate for an alternative. In Marion County, for example, the number of homeowners who have successfully completed such conference settlements was very low.
Data showed that between May and December 2010, out of the 1,008 households in Marion County that qualified for a conference, only 270 went through with it. Out of this number, 123 were able to keep their properties, while 22 opted for a different arrangement and 120 saw their residences becoming one of the many Indiana bank owned homes
and foreclosed residential properties.
In his State of the Judiciary speech, Indiana Supreme Court Chief Justice Randall Shepard stated that foreclosure filings have risen again in 2010 compared with 2009 figures. Shepard reported that while the state is not among the regions with the biggest foreclosure and bank owned real estate problem, around 4,300 households were still added to the already high number of foreclosure owners in 2010.
The Chief Justice also reported that the high court is considering the best method to process foreclosures in the state's courts. This effort is geared towards controlling the rise in the number of foreclosed and bank owned homes
in the region. Shepard also noted how the settlement conferences were able to help those homeowners who were on the verge of losing their properties. In Marion County, there are seven judges who handle foreclosure-related settlement efforts.
Meanwhile, local judges have revealed that in recent months, more borrowers and lenders are getting involved in the settlement meetings after they found out that the courts are overseeing the procedures. They added that this might help keep the number of bank owned real estate and foreclosed properties low.
Analysts have stated that for housing markets in the U.S. that have high levels of foreclosure activities and big numbers of distressed homes
offered at house auctions
, 2011 will be much the same as 2010 or could be even worse. Data from Clear Capital showed that nationwide housing prices dropped by 4.7% in 2010 and much of the same is likely to happen in 2011.
Foreclosed and repossessed houses for sale
totals in 2010 broke 2009 records and values of properties dropped in almost 70% of all U.S. markets. For 2011, analysts are predicting that 35 out of the 50 biggest housing markets in the U.S. will record further declines in housing values, with national residential prices projected to drop a further 3.6%.
Despite the lack of optimism among analysts when it comes to gauging 2011 housing market conditions, data from Clear Capital did show that there are areas that will improve during the period in terms of number of properties under foreclosure list
and housing unit prices. These areas, like California, have already shown promise in 2010. Latest figures show that six metro areas in California posted home value gains in 2010, including San Diego, Fresno, San Jose, San Francisco, Riverside and Los Angeles.
Housing market observers have stated that continuous rise in foreclosed properties at house auctions and rising unemployment levels will hit housing values in several areas like Florida, Arizona and most of the Western region of the country. Dayton, Ohio and Oklahoma City were also cited as cities that will record further price declines in 2011.
These metro areas, analysts stated, are suffering from depressed job markets and huge inventories of foreclosures, REOs and other cheap houses for sale
. They stated that the higher the level of foreclosure activity in an area, the more likely it will suffer from price depression during the year. Unemployment is also a factor that played a significant role in analysts' predictions for 2011.
According to them, areas such as Washington D.C. and several markets in Texas will experience increased values of homes in 2011, primarily because they have healthier job markets and their foreclosure rates and distressed properties under house auctions are not as many as other metro areas in the U.S.
The huge number of foreclosed residences and bankruptcy homes
in North Texas hindered the growth of the new housing market in the 2010 fourth quarter according to area housing data. Builders in the region gained optimism during the first half of the year when demand for new houses increased, but the year finished with a poor showing from the new home market.
With housing sales also down during the quarter, the few buyers who ventured into homeownership and residential investment favored the cheaper properties offered at foreclosed Fort Worth home auctions
and other foreclosure sales in the region, causing housing starts to drop in the last quarter of the year. A total of 3,341 houses were built by North Texas builders in the October-December period, according to housing market data.
Housing unit sales also dropped in the three-month period, including numbers for newly built dwellings and properties offered at home auctions in Texas
, with total sales recording a 20% decrease compared with the same quarter of 2009. Analysts stated that the decline in both sales and housing starts showed that the region's housing market remain weak despite the help it got from the federal government's tax credit initiative during the first six months of the year.
Housing experts have stated that the primary reason is the huge supplies of foreclosed dwellings and bankruptcy homes in the region which dampened potential buyers and investors' interest in new houses. They predict that the trend will continue in 2011, but are optimistic that numbers will improve within the year as the job market of North Texas continues to stabilize.
They also stated that the low inventory level of homebuilders will help the market stabilize and will somewhat offset the effect of foreclosed properties at home auctions
in 2011. Compared with the peak period of 2006, housing starts in the region were almost 70% lower.
The 2010 fourth quarter also marked the lowest three-month period for the area in terms of homebuilding activities in almost 20 years. Analysts are predicting a modest rise in homebuilding activity in 2011 ranging from 10 to 15%. They also expect housing starts to be able to compete better against foreclosures and bankruptcy homes in 2011.
Those who plan on buying residential properties
, including residential real estate VA foreclosures, will be glad to know that mortgage rates have declined in the first week of 2011 after continuous increase during the last few weeks of 2010. Rates declined all over the U.S., providing encouraging news to would-be homebuyers and real estate investors.
Despite the low prices of Irvine foreclosures for sale
and other foreclosed properties in the state of California, most buyers have stayed out of the market as they wait for mortgage rates to change course. For the week ended January 6, 2011, rates for 30-year fixed mortgages were at 4.77%. This is lower than the 4.86% rate recorded in the previous week.
Meanwhile, rates for 15-year loans declined to 4.13% for the week from 4.20% the week before. For adjustable mortgage loans, one-year rate recorded an average of 3.24% compared with the 3.26% average of the previous period. Realtors in the state are hopeful that the decline in mortgage loan rates will encourage more buyers to sign purchase contracts for residential properties, including those under California bank foreclosure listings
For buyers of residential properties like real estate VA foreclosures
, the last few weeks of December did not offer much opportunity as loan rates rise continuously. In the previous week, rates for long-term loans jumped to their highest level in seven months after posting a record low of 4.17% back in November. Applications for mortgages rose modestly last week, according to the Mortgage Bankers Association. The rise followed a week when application totals reached their lowest level within a 12-month period.
The previous week's rise in the number of mortgage applications were mainly accounted for by refinance applications for existing loans, with applications for buying residential properties, including homes under bank foreclosure listings
, declining for the same period. Meanwhile, rates for 30-year mortgage loans with fixed rate in California rose slightly to 4.69% for the week from the 4.66% recorded the week before.
For sellers of residential properties like real estate VA foreclosures, the drop in mortgage rate is expected to help improve housing sales figures. Most realtors believe that the time is right for buyers to take advantage of the low rates and the affordable prices of dwellings before both started increasing again in the coming weeks.
A big number of residential properties
in Bakersfield, California have reportedly ended up in Sheriff Sales
after owners failed or gave up on getting their mortgage loans modified. According to residents, banks are moving at a snail's pace when it comes to approving applications for mortgage modifications.
According to homeowners, since the problem of foreclosed homes in Bakersfield, CA
started getting worse, a bigger number of owners have lost their properties to foreclosure compared with those who have successfully negotiated a modification. Some homeowners have complained that they were unable to get beyond the customer service representatives when they try to call and these agents are not in a position to make any decision so most applicants just abandon the attempt.
A lot of buyers find foreclosed homes for sale in California
that were formerly owned by people who just got tired of the long application process that residents claim did not get them anywhere. Several organizations have been established in the area to help troubled homeowners and one of them is the Service Corps of Retired Executives (SCORE).
SCORE is made up of retired real property professionals who help troubled borrowers by providing advice and assistance in their attempt to secure a mortgage modification and to prevent their properties from ending up in Sheriff Sales. According to these professionals, the main problem is in the lack of communication among the different units in a lending institution. They stated that most divisions are not aware what other divisions are doing, thereby causing confusion and a hold-up in processing applications.
In other cases, homeowners receive lenders' promises, some even in writing that their properties will not be put up as one of the many foreclosed homes for sale
while their application is pending, but these properties are still sold or auctioned off. Lenders, for their part, have denied such claims, arguing that federal law prohibits foreclosing on a property while a loan modification case is ongoing.
Mortgage servicers and lenders also asserted that they are doing all they can to prevent properties from ending in Sheriff Sales while a modification application is pending, but the huge volume of applications have prevented them from moving quickly through the process.
Sales of housing units, including new dwellings and pre foreclosed properties
, are projected to rise in 2011 in El Paso, Texas. According to economists, the housing market of the region will improve further during the year as soldiers moving to Fort Bliss reach a total of around 28,000 in 2011. The increase in population will herald bigger demands for residential properties, economists added.
Although El Paso repo homes
have increased in numbers during the housing market crisis, the county's home industry remained strong compared with other metro areas as military construction at Fort Bliss helped stimulate the area's economy. Economists expect the market to be even stronger in 2011, with single family housing construction projected to rise to more than 3,150 at a rate of 7.8%.
Although this is still below the peak periods of 2005-2006, the projected rise in housing starts is still considered very health for the housing market, particularly when new housing units are faced with tough competition for buyers' attention from cheap Texas repossessed properties
. In addition to housing starts, apartment construction is also forecasted to improve in 2011, with the rate of increase predicted at more than 30% which will bring total units to over 1,000.
Soldiers who will move to Fort Bliss in 2011 will be looking for places to live in, economists have stated. Most of them will probably not purchase homes immediately but will look for apartments and other rental housing units. But as rental properties get filled and it becomes harder to find apartments, a big number will be forced to purchase homes, with pre foreclosed properties and newly built residences filling in the gap.
This, economists have stated, will increase housing unit sales in 2011 for both newly built dwellings and house repossessions
. However, the rate of increase in home sales will depend partly on whether mortgage rates will continue to rise during the year.
Real estate analysts have stated that El Paso's home market has been heavily influenced by mortgage rates in the past, but most of them stated that nothing drastic will happen in 2011 that can cause a major deterioration in the industry. They still expect pre foreclosed properties and new home sales to improve during the period.
Most home brokers
share homebuilders' belief that the housing market in New Jersey will continue to be down in 2011. Confidence over a market recovery remained low among homebuilders during the month of December which mirrors the perception derived in November, according to the National Association of Home Builders/Wells Fargo Housing Market Index.
The negative outlook for the residential property market is based mainly on the huge supplies of foreclosed homes in Freehold
and in other local areas of the state. The fact that short sales and foreclosures account for a bigger part of residential sales results in the lack of confidence among builders, analysts stated. They added that high unemployment rates and tighter credit standards are contributing to hammer the housing market down.
Along with high levels of foreclosures in New Jersey
, local house builders are also reportedly concerned about the costs of land in the state which make New Jersey one of the priciest areas in the U.S. to conduct business in. The regulatory burden is also another factor cited by homebuilders that hinder the recovery of the home building market. Most builders are said to be optimistic that eventually, the market will improve, but not for a long time.
A number of home building offices have been closed in the state since the start of the housing market crisis and most operations have laid off employees, with majority of homebuilding offices focusing on re-evaluating their business models. Home brokers are also losing clients as buyers stay away from the New Jersey home market. Most of them believe that the industry will only get better once credit standards improve and the unemployment rate of the state declines.
Competing with cheaper bank foreclosure homes
is bad enough for homebuilders, add the seasonal downturn and the cold weather that discourages home buying activities and one will have a very poor market indeed, analysts have stated. The homebuilding confidence index has maintained a score of 16 for the past two months, with anything below 50 considered a negative score, analysts explained.
Home builders and home brokers are expecting weakness in the house building industry to continue for another six months at the very least. They stated that New Jersey will have to wait for another year or so before the house building sector shows any sign of recovery.
Sales of existing residential properties, including bank and Fannie Mae foreclosed properties
, dropped in Central Ohio during November 2010. According to housing market experts, the decline can still be attributed to the U.S. federal government's tax credit program which artificially inflated 2009 housing sales statistics.
Sales of single family Columbus distressed homes
, condominium units in various areas of the state and other existing dwellings dropped by almost 28% in November 2010 compared with the same 2009 month. Total number of existing housing unit sales for November 2010 reached 1,325 compared with the 1,839 total posted in November of last year. According to housing market observers, the previous year's figure was boosted by homebuyers taking advantage of the federal tax incentive.
Majority of local analysts believe that, to accurately gauge the housing sales trend in the region, Ohio distressed homes for sale
and other existing dwellings purchased in November 2010 should be compared with November 2008 figures since both months were not affected by the tax credit program. In November 2008, 1,153 existing residential properties were purchased in the region, which represented a slight decline from the November 2007 total of 1,585.
Realtors in the region reported that November 2008 signaled the start of the housing market decline, when bank foreclosed dwellings
and Fannie Mae foreclosed properties started flooding the market. The decline continued on, with most succeeding monthly figures recording a drop compared with year-ago and month-ago levels. November sales represented a drop of 3% when compared with the 1,368 total posted in October 2010.
As for Central Ohio's housing inventory, realtors reported that around 11 months worth of distressed foreclosure homes
and other existing dwellings remain unsold and are in the sales pipeline of the region as of November. Meanwhile, year-to-date existing home sales totaled 18,216, representing a 3% fall compared with the same 2009 period. The first 11 months of the previous year had a total of 18,771 existing residential properties sold.
In terms of the length of time that Fannie Mae foreclosed properties and other existing houses stayed in the market before getting sold, 2010 showed some improvement. For the first 11 months of the year, homes stayed in the market for 89 days compared with 97 days the year before.
Majority of real property agents expect 2011 to be a better period for the housing market of Fort Myers, Florida. Although foreclosure auctions for sale
remain high, most agents believe that the recovery of the market will start this year. However, they did warn that any improvement will be modest at best.
Agents based their expectations on increased activities involving foreclosed homes in Fort Myers, FL
and other residential properties in the rest of Lee County. Although most of them stated that the recovery has yet to start, it will likely happen in 2011, albeit in a slow pace. The positive outlook for the residential property market, however, will not be the same for the commercial property market, analysts have stated.
According to them, residents will find foreclosed homes for sale in Florida
to be in more manageable numbers by next year as buyers start purchasing them. For commercial properties
, analysts believe that it will take until 2011 before the segment hits bottom. They explained that the commercial property sector has always lagged the residential property market and it will be the case again in the next couple of years.
Another reason cited by agents for the slow recovery of the commercial market is the amount of mortgages attached to commercial properties that will be due by 2011. These properties will likely end up as foreclosure auctions for sale. In 2010, commercial properties with mortgages worth $310 billion came due and this figure is expected to increase up to $500 billion in 2011. They expect further increases in commercial mortgages that are due come 2012.
Meanwhile, the residential property industry is expected to start a modest recovery in 2011. Analysts believe that the market will be buoyed by the increase in the number of foreclosure homes for sale
that were purchased from the market by buyers in 2010. They stated that a big number of buyers had paid cash in their 2010 residential purchases and a big number of short sales were completed, thereby creating a healthier residential real estate market.
Although sales are expected to continue to rise for residential foreclosure auctions for sale, prices of dwellings are expected to remain low, with most markets favoring homebuyers rather than sellers. They stated that this pricing trend will continue for the rest of 2011.
Growth in listings of bank-owned homes
continues to take its toll on new home sales all around the U.S. For November 2010, the number of new residences sold was fewer than what economists projected for the month. According to industry experts, aside from foreclosures, new housing sales are also being hit by the high unemployment rate.
Analysts have stated that foreclosures are competing against new homes for buyers' attention. They added that the decline in distressed real estate investing
in the past two months or so caused the number of unsold cheap foreclosures to be higher than before, making it even harder for builders of new dwellings to gain a bigger share of the home buying market.
Aside from the huge supplies of foreclosure properties auctions
, the country's unemployment also continues to hover near the 10% mark, causing consumer confidence to decline and home buying activities to drop. New home purchases rose by 5.5% for the month compared with October, reaching a 290,000 yearly rate compared with the October o Homepace of 275,000. Despite the monthly increase, the number is still lower than economists' projected figure of 300,000 for November.
Last August, new housing sales set a 274,000 annual pace and recorded the lowest trend since 1963. Economists predict that the slow pace will likely be maintained until 2011 as sellers of new residences will continue to have to deal with unemployment that is almost at its highest level in more than 25 years. In addition, listings of bank-owned homes are expected to rise further, with demand also expected to weaken as potential buyers face tighter lending rules.
Meanwhile, the number of people willing to buy repossessed properties
and other existing properties increased in November to 4.68 million. The figure, however, is less than the total projected by economists, given that existing residential properties account for almost 90% of the total home selling market.
Although the actual figure is lower than what was expected, it is still better than the record low in July when only 3.84 million existing houses were sold as reported in most foreclosure magazine
Most housing market analysts agree that the U.S. residential market has gotten over the worst part, but it would take years before it can return to normal, particularly with listings of bank-owned homes remaining at high levels.