Deficiency Judgments from Home Foreclosures Loom Heavy on the Horizon – Wall Street Journal.
John Murphy has a great post you should read if you are in the midst of a foreclosure or short sale. It looks like the banks are gearing up for deficiency judgments. Seek legal advice, not Realtor advice when going through foreclosure or short sale process.
This is news, but not really. I am actually surprised it is not higher. With the values dropping as far as they have, it is surprising to me that more people don’t owe more than their home is worth right now.
I do believe that with inflation, improved employment that this will self correct over time. The big question is how long will it take to correct? I have heard guess-ta-mates anywhere from 3 to 12 years out. My guess-ta-mate, well that is one of the purposes of my blog… it depends on the job situation – if our economy turns around and people get good paying jobs again, we will recover quickly. If this economy lingers, it will take much longer. How’s that for stating the obvious? I am trying track the factors that influence our housing market on this blog, so far I have not discovered a crystal ball that gives an exact date. If you can predict the jobs recovery, you can predict the housing market recovery…
Nearly 11 million properties, roughly 22.5% of all U.S. homes, were worth less than the underlying mortgage in the second quarter, according to CoreLogic.
Read Full Article from Housing Wire
Minneapolis Area Association of Realtors completed the August Report of Foreclosures and Short sales for the twin cites market.
We are still plagued by high levels of foreclosure and short sale inventory, but this too is showing signs of improvement. This has been one of the key problems to our housing market – although I point to our Jobs situation. Many of these foreclosure and short sales would not be if not for the high unemployment rate.
Year over year, we were down -23.9% in Foreclosure inventory equalling 2,466 foreclosure listings. We were also down -19% in Short Sale listings, equalling 4,847 Short Sale listings. At the same time our Traditional listings were down -21.8% or 16,210 traditional listings.
In 2009 Short Sales and Foreclosures account for approx 27.6% of the listings. In 2010 Short Sales and Foreclosures accounted for approx 30.77% of the listings, and in 2011 they accounted for approx 31% of the listings. (August only figures each year). We are depleting all inventories at a fairly even pace.
August 2011 Foreclosure & Short Sale inventory
The Banks Are Killing the Housing Market with Short Sale Policies.
Great post by John Murphy, a friend and fellow Realtor. This is problem that needs to be addressed to help the real estate market correct.
I recommend taking the time to read it.