Underwater Homes are Returning to Positive Equity

In the beginning of the year, the market shift into an overhaul of multiple offers and fast rising home values.  This new change has created a change in home equity which has allowed 791,000 properties to return into a situation in which the borrower no longer owes more than the home is worth.

On December 17th on HousingWire.com article, the overall national value of negative equity continues to fall as home prices rise.  The rise is giving more homeowners a chance to benefit from refinancing and stay in their homes with the current low interest rates.   Or sell their property without harming their credit score as with a short sale and have a good chance to re-buy in the near future.

Highest Percentage of Mortgage Properties in Negative Equity

1) Nevada (32.2%)
2) Florida (28.8%)
3) Arizona (22.5%)
4) Ohio (18%)
5) Georgia (17.8%)


For more information regarding your home's current value, email us at ybetancourt@kw.com to get a free home value report.  Let us help you find out if your home has rise in value to avoid foreclosure/short sales.

Article source:  Housingwire.com

Are Foreclosure Becoming a Rare Sale?

by Yvette Betancourt 

According to CoreLogic, foreclosure inventory continued to shrink in April.  24% down from last year.  The shadow of foreclosure and distress continues to fade.  Six states have year-over-year declines in the foreclosure inventory of more than 40 percent, and one of those states is  California.  How much of decline?  How about 50 percent. 

In today's market, standard sales have become the norm.  Every now and then you can spot a foreclosures/shortsale property.

Foreclosure Inventory is Down by 21%

As of January 2013, foreclosure inventory has fallen for 15 months straight.  Nationwide, the number of homes in foreclosure is down by 1.2 million as of January.  This is a good sign that the real estate market and neighborhoods are stabilizing.  A major boost to the decline in foreclosure was also due to the holiday seasons in which banks traditional hold off.  

 With a decline in foreclosure,  real estate prices are soaring upward and appraisals are meeting the soaring prices.  Let us watch and see if this trend continues throughout the year.

According to CoreLogic, here are the top five states in the foreclosure inventory:

1. California (96,000)

2. Florida (95,000)

3. Michigan (74,000)

4. Texas (59,000)

5. Georgia (50,000)

For a list of recent foreclosures, click here. 

Decrease of Foreclosure Homes in California During the Month of October

During the month of October, foreclosure cancellation has rose 62.1 percent and 36.7 percent since October 2011. That is a pretty big increase!

It seems that the Homeowner Bill of Rights legislation that will go into effect on Jan 1, 2013 is responsible for the new change.  Under the bill, there will be a restriction on dual-tracking of foreclosures.  

Dual-tracking is the term applied to loans that are being considered for either a short sale or loan modification, while proceeding through the foreclosure process at the same time.  Prior to Jan 1, lenders have to cancel any foreclosure on a loan that a short sale has been approved or a loan modification is being considered.  

Foreclosures aren't the only decrease during the month of October, but Notice of Defaults declined 8 percent in California and 48.9 percent decrease since last year.  

Source: ForeclosureRadar.com

Home Vacancy Rate Falls As Housing Demand Improves

According to the U.S. home vacancy rate, the measure of properties empty and for sale, fell to the lowest level since 2006 as demand for housing improved and lenders slowed property possessions.  


The inventory of available homes is dwindling and growing investor purchasing forclosures and distressed properties have increased this year.  In return, investors are turning out new houses to meet demand from traditional buyers who are being crowded out by cash-paying investors.  


Vacancy decline means that builders have a good reason to start up construction.  Since 2009, many people moved back in with their parents.  This created a sharp drop in building new homes.  


Source: Bloomberg.com