Manatee Moves - The Joe Murphy Team » foreclosure

stats on foreclosures

Joe — Tue, 07 Dec 2010 13:30:28 +0000

This report is from Lending Processing Services (LPS) issues a monthly Mortgage Monitor which looks at several aspects of mortgage performance. We like to study this report to see what is currently taking place with delinquencies and foreclosures. The November report (which covers through October) had some very interesting information.

http://kcmblog.com/2010/12/06/current-foreclosure-facts-from-lps/

Delinquency Rates

All delinquency statuses are calculated using the MBA methodology based on the payment due date provided by the servicer. Loans in foreclosure are reported separately and are not included in the MBA days delinquent.

Total delinquencies remained relatively stable for the fifth consecutive month and are down 8.4% from the same month last year. Basically, the delinquency challenge is not getting any worse and is leveling off at numbers below where they were last year.

However, these numbers are still 2.7 times historical averages. The number of loans becoming 90 days delinquent still far outnumbers foreclosure starts.

Foreclosure Inventory

The servicer has referred the loan to an attorney for foreclosure. Loans remain in foreclosure inventory from referral to sale.

Inventory is continuing to rise rather dramatically – up 7.1% since June – and up 5.2% from the same time last year. This is not good news as this inventory will be placed on the market in coming months at discounted prices. That will put downward pressure on all housing values. Inventories are 7.4 times historical averages and continuing to rise.

The two greatest percentage increases in foreclosure inventories since 2008 come from jumbo prime and prime mortgages.

The movement of foreclosed inventory to REO (foreclosed properties on the market) dropped dramatically in October. The monthly decrease could be explained by the moratorium put into effect by some banks because of the robo-signing challenge.

Foreclosure Starts

Any active loan that was not in foreclosure in the prior month that moves into foreclosure inventory in the current month.

There were 263, 251 foreclosures started last month. This is down 4.4% from the previous month but up 2.9% from last year’s numbers. The monthly decrease could be explained by the moratorium put into effect by some banks because of the robo-signing challenge.

Loans NOT Yet in Foreclosure

The percentage of loans not yet in foreclosure that has not had a payment made in over six months.

§ 27.2% of loans 6 months behind are still NOT in foreclosure

§ 21.1% of loans 12 months behind are still NOT in foreclosure

§ 19.2% of loans 18 months behind are still NOT in foreclosure

§ 18.3% of loans 24 months behind are still NOT in foreclosure

Foreclosure Sales

Any loan that was in foreclosure in the prior month that moves into post-sale status or is flagged as a foreclosure liquidation.

Foreclosure sales plummeted 35% last month. The monthly fall-off could be explained by the moratorium put into effect by some banks because of the robo-signing challenge.

Bottom Line

The delinquency situation seems to be improving. However, it will take some time for the foreclosures to clear. The housing market won’t fully recover until they do.

Joseph C. Murphy, Broker-Associate, BS, Previews Certified

Coldwell Banker Residential Real Estate

11215 State Road 70 Suite 105

Lakewood Ranch, FL 34202

941-780-3260 cell/text

941-739-6777 office

941-739-9120 fax

www.manateemoves.com

Bank of America announces that Foreclosures are back on

Joe — Fri, 19 Nov 2010 13:42:54 +0000

Bank of America today announced that the freeze on mortgage foreclosures in the 23 states that have Judicial foreclosure is lifted. That includes here in Florida.
Over 100,000 new foreclosure filings will take place next week.
This was probably expedited to get nervous stock holders more comfortable. Since many investors have worried that a protracted foreclosure cycle will cause losses for the lenders. Which it will of course.
Let us hope that Bank of America decides to get more proactive with real loan modifications, and short sales.
Then we would not have to deal with as many foreclosures.
Foreclosures help no on except the loan service r, Like Bank of America, which will make money no matter whether a home foreclosures or stays current. A true win-win for Bank of America. Plus now, their stock prices are sure to rally with this news.
To bad for all those investors who shorted that stock!

Fannie Mae and Freddie Mac seize foreclosure files from David Sterns mill gets raided

Joe — Thu, 04 Nov 2010 19:37:27 +0000

David Sterns law practice on the east coast of Florida has been one of the biggest firms processing thousands of Florida Foreclosure cases over the past few years. Freddie and Fannie had enough about the obvious shortcuts taken by the firm, and seized thousands of files from their office this week to review them for possible errors.

Nice to see that Fannie Mae and Fredddie Mac are stepping in to straighten out this mess! Perhaps spreading out the case load a little might help to get these foreclosure files handled better.

In any case, this should serve to slow down the already slow pace of foreclosures in the State of Florida. This should help to encourage Fannie Mae and Freddie Mac to get faster, and easier to deal with on short sales. In a short sale the entire cost, and headache of the foreclosure process is avoided. This helps the big lenders, the investors, and the homeowners who are facing the credit hit of a foreclosure.

Need help with a short sale in Sarasota or Manatee? Make sure to contact Joe Murphy, real estate agent with Coldwell Banker. Joe Murphy is a leading short sale agent in the Sarasota and Bradenton areas. Free, confidential help is here if you have questions or concerns about the short sale process.

941-780-3260

www.manateemoves.com

http://www.floridarealtors.org/NewsAndEvents/article.cfm?id=249810
Joseph C. Murphy, Broker-Associate, BS, Previews Certified

Coldwell Banker Residential Real Estate

11215 State Road 70 Suite 105

Lakewood Ranch, FL 34202

941-780-3260 cell/text

941-739-6777 office

941-739-9120 fax

www.manateemoves.com

Posted via email from Joe Murphy Knows Real Estate in Bradenton

Where are all the “Bank-owned” homes in Manatee County, FL?

Joe — Wed, 27 Jan 2010 03:45:55 +0000

It was front page news that the number of foreclosures filings here in Manatee County has had 5687 foreclosure filings to date this year, which is an increase from last year. This is a lot of homes and as an active agent it made me wonder where are all the bank owned inventory?

There are 4696 total active residential listings as of this evening (11/22/09). 474 "normal" are pending
There are 149 active bank owned homes 123 pending

There are 920 short sales active there are 940 pending

The Statistics show two big things.

The action is happening on bank owned, and short sale homes. You can clearly see that there is almost the same amount of pending listing vs. active in the short sale/bank owned categories. The conventional sellers have only about 10 to 1 that are pending.

If there are almost 6000 homes that have entered foreclosure WHY is there less than 300 active and pending bank owned properties

Factor in that there are foreclosure filings from prior years that have not been completed. Many foreclosures I am aware had a foreclosure filing well over a year ago and have not gone to auction.

Also, some of foreclosure filings that are also homes that are currently listed as short sales.

Some of the foreclosure filings can also be filed from second position lien holder,s and homeowner associations that have a low probability of actually forcing a sale. These type of filings maybe inflating the numbers somewhat.

So there are under 2000 homes short sale homes, active and under contract.  This means that there are around 4000 homeowners that are either attempting a loan modification, or have given up on either a short sale, or some type of work out solution.

I would estimate that if there are 2000 homeowners short selling, than there is at least that many attempting or considering a loan modification.

Activity in Manatee County has significantly increased in the past few months. Prices have continued to drop except in the 200,000 and under market where prices have leveled. Multiple offers are much more common for bank owned homes.

Why is there only 5% of the total inventory bank owned when there is more homes in foreclosure than all active and pending sales on our local MLS?

Two reasons

1.  The slow pace of foreclosures is due to the flood of files, and the increasing willingness for lenders to agree to short sales, and loan modifications.

2,  Anyone that has a bunch of inventory to sell realizes that if they flood the market it will drive down prices.

I am hopeful that the lien holders will come to realize it is better to keep homeowners that want to stay in their home if at all possible. Less inventory will create price stability.

The question remains when will all those foreclosures will come on the market? I guess it is really in the lien holder's hands.

Thanks,
Joseph C Murphy P.A.
www.manateemoves.com
joe@manateemoves.com
941-780-3260
Posted via email from Joe’s posterous

Considering a short sale?

Joe — Sat, 16 Jan 2010 11:43:16 +0000

So you have to sell your home, but you owe more than it is worth. Here are your options if you have to sell.

IF you would rather stay in your home, but are having trouble afford the payments a loan modification should be your first step.

But if you already,

Tried to modify and the payments are still to high. ( I can help with this too.)

Need to relocate for work or change in family reasons.

Can’t afford to stay in a home that has too high of a mortgage payment.

Your property is “UNDERWATER”, and you are prepared to walk away from a home that has no prospects of increasing in value in the near future. This would be considered a “strategic default”.

Short sale or Foreclosure

Short sales can be tedious, exhausting and an inconvenience for a home seller. Is it worth it???? YES!!

Some things are worth the effort. A short sale vs a foreclosure is well worth the effort.

Here are the Pros and Cons to maybe help you make up your mind which way to go

“Cons”

Having to accommodate buyers seeing your home. Showings can be a hassle with pets and kids

Organizing and submitting paperwork to the lender. The lenders request for paperwork, bank statements, tax returns, profit and loss statements, budget worksheets etc can be a hassle, and sometime a challenge for even an organized person.

There is a potential for tax consequences from written off debts from the lender. An important consideration for investment properties.

There is no guarantee that a buyer will buy, or your lender will agree to take the sale. My success rate for closed short sales here in Manatee County is 94% I have had only three short sales NOT go through out of over 45 sales. Two were due to an unreasonable lender with regards to market value, and the other was from a seller who just gave up.

“Pros”

Avoiding the stigma, and credit effect of a foreclosure on your credit. This is the main reason to short sell. If you want to be a homeowner again in the near future this is the way to go. A short sale can be much better to recover from than a foreclosure. Just think when you want to make an application for a new home loan.

Right now on primary homes the 1099 income has no tax consequences. If you short sell a primary home and the lender agrees to a short sale the taxable income is exempt of taxes, up to 2 million dollars. Please note that this does not apply to investment properties. There is other causes for exemption of taxes but that’s another post.

Your neighbors will benefit from you short selling vs foreclosing. A foreclosure will typically sell for less than a short sale. It takes time for a home to foreclose, then get re marketed by the bank, In that time, the home’s condition can go down hill fast. Here in Florida, a home closed up with no A/C will only last so long. In a short sale, the amount of home vacancy is reduced thereby helping the neighborhoods appeal, and resale values.

I am an advocate for the short sales over foreclosure.

Obviously I have an interest as a real estate agent thats how I make a living. I graduated with a degree for psychology, and social work. Helping homeowners in tough situations is very rewarding for me. I have helped my customers negotiate with lenders for reduced payments and loan modifications, and if that doesn’t work out, helping them get out of their home, and avoid foreclosure. My customers that have had successful short sales will be back sooner than later to having normal credit, and the possibility of home ownership. That’s what I call “social work”!

Sellers can get to a point where they are ready to just give up, but at these darkest moments we have to be reminded of the long term goal. The temporary pain of showings, negotiating offers, and following up with lenders can aggravate even the most patient home seller, and agent too.

The outcome does justify the process.

If you need help buying or selling real estate in Manatee County please consider me for the job. I have been a top producing agent here in Manatee County for the past 7 years.

I am an Experienced short sale agent and I would be happy to discuss your unique situation and give you advice that you need. Don’t go it alone. Call me today

Joe Murphy 941-780-3260 cell/txt

joe@manateemoves.com

www.manateemoves.com