Foreclosure Filings Fall- Average Days of Repossession Rise

Foreclosure Filings Fall- Average Days of Repossession Rise

Foreclosures concentrate in 5 states in April 2011Foreclosure activity continues to drop nationwide and especially pockets in the Bay Area .

Based on data from foreclosure-tracking firm RealtyTrac, foreclosure filings nationwide fell below 220,000 in April 2011, a 9 percent decrease from March.

A “foreclosure filing” is defined as any foreclosure-related action including Notice of Default, Scheduled Auction, or Bank Repossession.

April marks the seventh straight month in which foreclosure filings have dropped and total filings are down more than one-third year-over-year.

Delay’s in filings cloud numbers

One reason why filings are down is that banks are letting more time pass between delinquency and foreclosure, exploring alternative courses of actions such as short sales and loan modifications. It now takes, on average, 400 days from an initial default notice to bank repossession.

That’s more than double the 151-day average of early-2007.

Another reason may be that job growth is returning to the U.S. and job creation is associated with fewer home loan defaults.

Regardless, in the states in which foreclosures are occurring, bank repossessions are concentrating among just a few.

5 states accounted for half of the country’s April REO:

  • California : 19.8 percent
  • Arizona : 9.5 percent
  • Michigan : 7.5 percent
  • Florida : 6.7 percent
  • Texas : 5.6 percent

Collectively, these 5 states represent just 32 percent of the nation’s population.

If you’re a first-time home buyer considering foreclosed homes in Pleasanton, Dublin,  Livermore , or a seasoned investor adding to your portfolio, the good news is that foreclosures are selling at steep, 20 percent discounts relative to non-distressed homes. Just make you know what you’re buying. Foreclosure purchases carry different risks and follow different procedures than “traditional” sales.

Get Pre-Approved So You Can Move Quickly

When you’re shopping for a Foreclosure or REO  in the Bay Area or Central Valley, have a pre-approval letter. It not only shows the seller and listing agent that you’re serious, but just by getting pre-approved, you’re able to bid and close on your home faster than the next guy. And speed helps.

All things equal, sellers and even more so banks want to close quickly to move their REO property. If you’re pre-approved, you can do that.

To get a free pre-approval (and to check mortgage rates while you’re at it) Give me a call at 925-708-5400 or shoot me a message below to get started! I love to work with my readers!

 

 

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