Without a doubt, foreclosures has to be one of the hottest topics in real estate…
Doesn’t matter if you are buying or selling, the number of foreclosed homes in your area WILL have an effect on you. Which is why the latest news from RealtyTrac about foreclosures decreasing is something for us to consider. So what did RealtyTrac say?
Bad News First
Well, the bad news first. They said that foreclosure actions increased by 2% in May from the level in April. I must point out that this is for the ENTIRE US.
Now the Good News
They said that foreclosure filings in May 2013 were DOWN 28% from the May 2012 level. And while foreclosure actions in May increased from the previous month’s level, that is not as bad as it sounds. You see April was the lowest point for foreclosure activity in 75 months according to RealtyTrac’s U.S. Foreclosure Market Report. So while activity increased, it is still better than it has been in the not too distant past.
Foreclosure activity in South Carolina is down 2% from the previous month and is down 11% from a year ago.
RealtyTrac said that about 1 in 885 US homes were in some stage of foreclosure in May. This does not mean that 1 in 885 homes is a foreclosure! Instead this means that some kind of paperwork related to some phase of foreclosure (Notice of Default, Notice of Trustee Sale, and Bank Reposession) has been filed. This does NOT mean that the home will become a foreclosure.
The number of homes that actually winded up going back to the bank did increase by 1% in May. However that is down 29% if we compare it to the level from one year ago.
Interesting Side Story About Foreclosures and Bank of America
It appears that BofA was giving their employees a BONUS to foreclose on people according to a recent report from CNBC:
Bank of America routinely denied qualified borrowers a chance to modify their loans to more affordable terms and paid cash bonuses to bank staffers for pushing homeowners into foreclosure, according to affidavits filed last week in a Massachusetts lawsuit.
That is really screwed up. Not that we can expect our elected officials to do anything about it.
The banks & Wall Street have too much money. The idiots in Washington just don’t care about the average person getting screwed over by a big bank anymore.
The Take Away
Buyers: There is no doubt that foreclosures can be a great deal IF you know what you are doing. Or you can be making HUGE mistake if you do NOT know what you are doing.
Sellers: You must think like a buyer. You must realize that buyers want the best bang for their buck. You must make sure your home is in tip top condition. You may NOT be able to beat the foreclosures on price but you CAN beat them by having your home in tip top shape.