Foreclosure rates in Buncombe County continue to climb, far outstripping 2008’s foreclosures. Year-to-date, my research shows 176 homes were lost to foreclosure for the first half of 2009. This is a 60% increase over 2008.
Another way to summarize the situation: We have had as many properties lost to foreclosure for the first two quarters of 2009 as the first THREE quarters of 2008.
A significant portion (I estimate as much as 30%) of foreclosed properties are partially finished new construction homes. These place a unique burden on the local housing market. First, the lenders who take these properties back under foreclosure now must hire contractors and incur the costs to complete these homes. Homeowners adjacent to these semi-completed, foreclosed home will likely see additional depreciation of their own homes as the community wonders when the economy will turn and these homes be completed and finally sold.
Remember, foreclosure is a process. Many homeowners may find themselves in foreclosure, but may be able to restructure the loan, refinance or perhaps sell and avoid the lienholder taking the property back.
If a homeowner finds themselves behind in their mortgage, there are many strategies to keep them in the home. Contact me to learn more.
Homes in the foreclosure process are on the rise. For the first two quarters of 2009 we see 594 properties in the process of foreclosure compared to 496 for the same period in 2008. Perhaps more disturbing is the percentage of homes that enter the foreclosure process that ultimately leads to the loss of the property. For the first half of 2008, 22% of homes in the foreclosure process actually had the unhappy ending of property loss. For the first half of 2009 we are seeing more than 29% of properties that enter foreclosure result in the loss of the property.
We regrettably have a one-two punch. Homes in the foreclosure process are up. More homes that enter foreclosure are being lost.
Tags: Asheville, deed of trust, distressed properties, foreclosure, incentives, mortgage, real estate, reo, short sale, short sales
July 7, 2009 at 2:01 am |
[...] Original post by billmcmannis [...]
July 11, 2009 at 3:52 am |
Adjustable Rate Modifiers…
In either case, you need to do your homework before bidding on a home at auction. While you can find many deals at a real estate auction, you can also end up paying too much for a dud. When a homeowner is facing eviction from the bank, they often take …
July 11, 2009 at 4:50 pm |
In the case of WNC, auction is probably not the best strategy to buy foreclosed properties. (Please remember, as a broker I always worked to avoid foreclosure and keep the homeowner in their house whenever possible.) Unless the home has signifcant equity, almost all courthouse auctions will reflect a price higher than the current market value. Lienholders are very tired of the info-mercial people claiming that homes are being sold at auction for pennies on the dollar. Consequently, auction price is usually set at the mortgage balance plus accrued late fees, interest and legal fees. With the auction price set so high, there are no bidders. The lienholder then takes title to the property and turns the home over to a broker who specializes in REO’s. Typically, the REO price is LESS than the auction price.