Interesting Foreclosure Statistics

Tuesday, September 13, 2011

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,



_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs.

How's the Hampton Roads Real Estate Market?

Saturday, September 10, 2011

Hello Hampton Roads,

I hope everyone is healthy and happy--I looked outside and hey, it's not raining!

There is a very interesting article in today's Virginia Pilot by Josh Brown--he reports on home sales in South Hampton Roads (includes Chesapeake, Norfolk, Portsmouth, Suffolk, Virginia Beach).

 Here are the findings in a nutshell:

• Year over year sales are up but the median sales price is down. 
• Median sales price has declined for the last 9 consecutive months when compared to the same time last year.
• Distressed property sales (foreclosures and short sales) have increased from 25% last year to 29% this year.

There were 1080 homes sold last month (up 2.5 percent from July and 18.6 percent from August 2010)  at a median price of $199,900  (down 7 percent from August 2010).  Also the total number of homes sold this year through August is up from the same period last year.

The volume of homes being sold is certainly better and this can be attributed to investors coming into the market and buying and flipping homes.  The lower end of the market is certainly active but there are deals that can be found in every price point!  Whether investing or looking for a great deal on your primary residence, the profit or equity potential is made when you buy. 

As always, I am available to help you with your housing needs.  Feel free to contact me and let me know how I can be of service!

Thanks for Reading,


_________________________  
Serving your Hampton Roads and Virginia Beach Real Estate needs.

First Time Home Buyers Grants for the Military

Thursday, September 8, 2011

Hello Hampton Roads,

I hope you all weathered Irene okay and are transitioning easily from summer to fall!

I wanted to pass along a great opportunity for active duty personnel, veterans, retired military, or homeland security employees-- up to $5,000 in grant money for first time home-buyers!
Essentially, the funds can be used for down payment and closing costs, and in addition to being in the military and being a first time home buyer, there are income limits which must be met.  Gross income can be no more than $55K/yr or no more than 80% of your community's median based income, based on family size.

For our area, FY 2010 Income limits are a median income of $68,200 and an income limit of $54,550 for a family of four.  This holds true for all seven cities of Hampton Roads.

The way it works is that an applicant must contribute at least  $500 of his or her own funds and the Dream Makers Grant will match those funds 3 to 1. The applicant's down payment with the Grant must equal to a 3% down payment based on the purchase price.  Another great thing about this grant  is that it can be used with any 30yr fixed rate mortgage from a financial institution of your choice!

You can apply online or download an applicantion and fax or email it.
http://www.pentagonfoundation.org/site/PageServer?pagename=dream_index

Interest rates are as low as ever and now is a great time to take advantage of this opportunity!

If you need help or have any questions, please contact me.


Thanks for Reading,



_________________________  
Serving your Hampton Roads and Virginia Beach Real Estate needs.