Interesting Foreclosure Statistics

Hello Hampton Roads,

I hope everyone is having a nice beginning to the week, ready to go after the 9/11 anniversary weekend, plus the first NFL weekend, US Open tennis, World Rugby Championships, etc...

I ran across a very telling article by Steve Cook, "Foreclosures Now Take 20 Months."
It is kind of a good news/bad news article. On the one hand, first-time foreclosure starts were at three-year lows in June, and first-time delinquencies accounted for 25% of new delinquent inventory. Both these indicate a slow-down in the number of properties headed into foreclosure--this would be the good news...

But, because there is so much inventory it will take a long time for all the foreclosed homes to sell--the absorption rate in judicial foreclosure states is 111 months (nine years, three months) given the same sales rate as now. In non-judicial states it would still take long, but not nearly as long as the judicial states, 32 months (two years, eight months). Just so you know, in judicial foreclosure states, the foreclosure must go through the courts, but not so in non-judicial states (Virginia is a non-judicial state). All this is the bad news because it looks like foreclosure properties will be a major factor in real estate sales for the next three to nine years!

Steve also reports some dizzying numbers about US home loans--at the end of June 4.1 million loans were either 90 or more days delinquent or in foreclosure, and foreclosure starts outnumbering sales by a factor of almost three to one--you can see that sales are not keeping up with inventory, so the inventory of foreclosed homes is increasing.

Steve also writes "Also, payments have not been made on the average loan in foreclosure in a record 599 days, or 20 months. Of the nearly 1.9 million loans that are 90 or more days delinquent but not yet in foreclosure, 42 percent have not made a payment in more than a year with an average delinquency of 397 days, also a new record."

It looks like distressed properties are going to be with us for a while. If you need help trying to sell your home, are having difficulty making payments, or want to buy a home, please contact me--I can help!

Thanks for reading and have a great day!

Thanks for Reading,

View Liz Schuyler- CDPE, SFR, e-PRO's profile on LinkedIn
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