RealtyTrac released this news this evening. There was no mention of Minnesota in the report, however we are still running middle of the pack in their foreclosure heat map.
The report talks about how foreclosure activity has been slowly declining but they are expecting it to pick back up as banks will want to move the next wave through the system.
“U.S. foreclosure activity has been mired down since October of last year, when the robo-signing controversy sparked a flurry of investigations into lender foreclosure procedures and paperwork,” said James Saccacio, chief executive officer of RealtyTrac. “While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up.
“Third quarter foreclosure activity increased marginally from the previous quarter, breaking a trend of three consecutive quarterly decreases that started in the fourth quarter of 2010,” Saccacio continued. “This marginal increase in overall foreclosure activity was fueled by a 14 percent jump in new default notices, indicating that lenders are cautiously throwing more wood into the foreclosure fireplace after spending months trying to clear the chimney of sloppily filed foreclosures.”
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RealtyTrac Foreclosure Heat Index Map
RealtyTrac Foreclosure Heat Index Map Minnesota
RealtyTrac Foreclosure Activity Counts
Hennepin County has 973 foreclosures according to RealtyTrac, they break that down further with the housing units to foreclosure ratio of 1 in every 520 housing units. (quick math in my head 1 / 520 = .19% ? is that right? )I really wish we had a historical perspective on the foreclosure rate as a benchmark…
Still trying get a grasp on this phantom “Shadow Inventory” and what kind of numbers we are looking at for the Twin Cities…
Image via Wikipedia, "our new housing market mascot"
Housing market hit bottom: former RealtyTrac exec.
Well, it’s official, we have hit bottom! At least according to Rick Sharga, former RealtyTrac exec.
The U.S. housing market hit bottom this year and will remain flat until 2014, when it will start to slowly recover, said Rick Sharga, an executive vice president withCarrington Mortgage Holdings.
“We’re looking at a catfish recovery,” he told attendees at the Asian Real Estate Association of America conference in San Francisco Friday, saying the market will bump along the bottom for some time before starting to revive.
More than a million foreclosure actions that should have taken place this year have not yet moved forward, and that delay pushes a resolution of the housing market’s problems into next year and beyond, he said, citing data from RealtyTrac, where Sharga served as a senior vice presidentuntil this week.
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The article goes on to mention the shadow inventory problem holding recovery back along with anemic economic growth.
Of all the predictions so far, this sounds to me like the most realistic one. But who knows, it is anyone’s guess at this point.
I do like his term “Catfish Recovery”, bumping along the bottom. There is nothing quite like the ‘down home’ ‘common sense’ phrases..
RealtyTrac has a good video about the wave of new foreclosures coming down the pipeline. Minnesota has 2,403 New Foreclosures which is running about the middle of the road for the entire nation. Wisconsin posted 3,841 new foreclosures and Illinois posted 12,493 new foreclosures.
Time will tell… The shadow inventory is potentially large, but I am clinging to optimism that Minnesota’s judicial foreclosure system allowed us to clear much of our shadow inventory through short sales quicker than the other states. Which would in part explain why we have suffered some of the largest price declines in the nation to date.
Image via Wikipedia
Foreclosures increased 33% from last month according to RealtyTrac. A large amount of this is attributed to Bank of America. There was a lawsuit filed claiming that the foreclosure process was fraudulent because they were using an “auto-signature” on paperwork, so that put a stop to a number of foreclosures. It looks like those foreclosures are now being pushed through the system. On the bright side, foreclosures are still 33% below last year…
Mortgage servicers started the foreclosure process on more than 78,800 properties in August, a 33% increase from the month before and the highest monthly increase in four years, according to RealtyTrac…
…Overall filings, including default notices, scheduled auctions and bank repossessions, reached 228,098 in August, up 7% from the previous month but still down 33% from last year.
Read Full Article from HousingWire
This is part of the “Shadow Inventory”. There have been a number of estimates on how large this shadow inventory is. Call this blinding optimism on my part but I don’t believe the shadow inventory will hit the market in large numbers. I will try to quantify my theory with some data in the coming weeks, but right now I speculate that the banks will work off the inventory with refinancing and short sales. The banks are getting smarter at this and are realizing that they take a huge bath when they take the property back. The foreclsoures are still a big problem until employment gets back up where people can meet their obligations again.