DAILY REAL ESTATE NEWS | WEDNESDAY, FEBRUARY 11, 2015
Foreclosures are making up a much smaller share of many markets’ housing inventories and slowly falling back in line with historical norms. Completed foreclosures totaled about 39,000 nationwide in December 2014, a 13.7 percent year-over-year decrease and a 66 percent plunge from the peak in September 2010, according to CoreLogic’s December National Foreclosure Report.
What’s more, the 12-month sum of completed foreclosures for 2014 — 563,294 — is at its lowest point since November 2007, according to the report. Completed foreclosures have fallen every month for the past 34 consecutive months. Historically, prior to the housing crisis, completed foreclosures averaged 21,000 per month nationwide.
"Completed foreclosures last year were less than half the 1.2 million peak in 2010, but remain twice the level of normal activity over 10 years ago," says Sam Khater, CoreLogic’s deputy chief economist.
Yet, "the steady decline in the number of completed foreclosures is a good sign of healing in the U.S. housing market," adds Anand Nallathambi, president and CEO of CoreLogic. "Nonetheless, there remain many pockets of the country with very high foreclosure inventories, underscoring the unevenness of the nation's housing recovery."
Completed foreclosures reflect the total number of homes actually lost to foreclosure. Since the financial crisis began in September 2008, about 5.5 million completed foreclosures have occurred across the country.
While foreclosures overall are falling, many markets continue to struggle with the clearing of foreclosures from their pipelines. About 552,000 homes nationwide, as of December 2014, are in some state of foreclosure, known as foreclosure inventory. That represents a 34 percent year-over-year decrease. Also, all states posted double-digit year-over-year decreases in foreclosure inventory, except for West Virginia (which saw a 9.5 percent decrease) and the District of Columbia (which posted a 21.7 percent increase).
In its latest existing-home sales report, the National Association of REALTORS® reported that many markets are seeing foreclosure and short sales fetch higher dollars at sale with discounts slowly shrinking. Foreclosures sold for an average discount of 15 percent below market value in December, down from 17 percent in November. Short sales were discounted, on average, by 12 percent below market value, compared to 13 percent in November.
5 States With the Highest Completed Foreclosures
Five states alone accounted for nearly half of all completed foreclosures nationally. The following five states posted the highest number of completed foreclosures for the 12 months ending December 2014, according to CoreLogic’s report:
Florida: 118,000
Michigan: 49,000
Texas: 35,000
California: 29,000
Ohio: 28,000
5 States With Highest Foreclosure Inventory
The following states saw the highest foreclosure inventory as a percentage of all mortgaged homes in December 2014:
New Jersey: 5.2%
New York: 4%
Florida: 3.7%
Hawaii: 2.7%
District of Columbia: 2.4%
Source: “CoreLogic Reports 39,000 Completed Foreclosures in December 2014,” CoreLogic (Feb. 10, 2015)
Showing posts with label home ownership. Show all posts
Showing posts with label home ownership. Show all posts
Wednesday, February 11, 2015
Tuesday, February 25, 2014
Boomerang Buyers Making Moves to Return to Home Ownership
Daily Real Estate News | Tuesday, February 25, 2014
Now that the worst of the foreclosure crisis is in the rearview mirror, former home owners who lost their homes to a short sale or foreclosure are re-entering the housing market. They've spent the last few years rebuilding their credit — and they're ready to buy again.
"We're about three years past the peak of the foreclosures, and that's about the time when most people would qualify for another loan," says Daren Blomquist, spokesman for RealtyTrac. "The market really needs boomerang buyers to maintain the current recovery."
Some boomerang buyers heading back to the housing market may find they have to make down payments of at least 20 percent to qualify for a loan, but others are finding opportunities to put down as little as 3.5 percent or 5 percent.
The wait times for qualifying for a loan can vary depending on the former home owners' circumstances. Typically, the wait times following a short sale or foreclosure are as follows:
• Seven-year wait for home owners with a previous foreclosure before they can qualify for a new mortgage through mortgage giants Fannie Mae and Freddie Mac. If the foreclosure was included in a bankruptcy, the borrower has to wait only four years.
• Two-year wait for home owners who underwent a short sale before they're eligible for another Freddie Mac and Fannie Mae loan.
• Three-year wait for home owners seeking a Federal Housing Administration loan after a foreclosure or short sale. Some home owners who underwent a foreclosure because of at least a 20 percent cut in their pay may be able to qualify for a new mortgage after just a year through FHA's Back to Work program.
Source: "'Boomerang' Buyers Get Another Chance at Homeownership," Sun Sentinel (Feb. 24, 2014)
Now that the worst of the foreclosure crisis is in the rearview mirror, former home owners who lost their homes to a short sale or foreclosure are re-entering the housing market. They've spent the last few years rebuilding their credit — and they're ready to buy again.
"We're about three years past the peak of the foreclosures, and that's about the time when most people would qualify for another loan," says Daren Blomquist, spokesman for RealtyTrac. "The market really needs boomerang buyers to maintain the current recovery."
Some boomerang buyers heading back to the housing market may find they have to make down payments of at least 20 percent to qualify for a loan, but others are finding opportunities to put down as little as 3.5 percent or 5 percent.
The wait times for qualifying for a loan can vary depending on the former home owners' circumstances. Typically, the wait times following a short sale or foreclosure are as follows:
• Seven-year wait for home owners with a previous foreclosure before they can qualify for a new mortgage through mortgage giants Fannie Mae and Freddie Mac. If the foreclosure was included in a bankruptcy, the borrower has to wait only four years.
• Two-year wait for home owners who underwent a short sale before they're eligible for another Freddie Mac and Fannie Mae loan.
• Three-year wait for home owners seeking a Federal Housing Administration loan after a foreclosure or short sale. Some home owners who underwent a foreclosure because of at least a 20 percent cut in their pay may be able to qualify for a new mortgage after just a year through FHA's Back to Work program.
Source: "'Boomerang' Buyers Get Another Chance at Homeownership," Sun Sentinel (Feb. 24, 2014)
Monday, November 4, 2013
College Grads Face Home Ownership Delays
The home ownership rate among college graduates is less than non-grads for the first time on record, according to the New York Federal Reserve.
College graduates are facing increasing obstacles to home ownership, mostly due to high debt levels and weak job prospects. The delay in Millennials entering into home ownership could be a drag on the housing industry for years to come, CNNMoney reports.
The average student loan debt has climbed to $27,500, according to data from the Project on Student Debt. Lenders factor in debt—including student loan debt—when calculating how much mortgage they’ll give a person to buy a home. What’s more, if young professionals miss a payment on their student loans, that can damage their credit scores and further hamper their chances for qualifying for a mortgage.
However, renting a domicile is also an important stepping stone to home ownership. Thirty-six percent of young graduates are living with their parents, according to a Pew survey. That has prevented them from building credit histories, which they also need to get a mortgage.
Some of the effect has already been seen in the shrinking number of first-time home buyers. The National Association of REALTORS® reported in their September housing numbers that first-time buyers accounted for 28 percent of existing-home purchases, down from 32 percent in September 2012.
Source: “Young and Smart, but Millennials Face Homebuying Hurdles,” CNNMoney (Oct. 31, 2013)
College graduates are facing increasing obstacles to home ownership, mostly due to high debt levels and weak job prospects. The delay in Millennials entering into home ownership could be a drag on the housing industry for years to come, CNNMoney reports.
The average student loan debt has climbed to $27,500, according to data from the Project on Student Debt. Lenders factor in debt—including student loan debt—when calculating how much mortgage they’ll give a person to buy a home. What’s more, if young professionals miss a payment on their student loans, that can damage their credit scores and further hamper their chances for qualifying for a mortgage.
However, renting a domicile is also an important stepping stone to home ownership. Thirty-six percent of young graduates are living with their parents, according to a Pew survey. That has prevented them from building credit histories, which they also need to get a mortgage.
Some of the effect has already been seen in the shrinking number of first-time home buyers. The National Association of REALTORS® reported in their September housing numbers that first-time buyers accounted for 28 percent of existing-home purchases, down from 32 percent in September 2012.
Source: “Young and Smart, but Millennials Face Homebuying Hurdles,” CNNMoney (Oct. 31, 2013)
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