According to the U.S. Foreclosure Market Report released by RealtyTrac, bank repossessions rose again last month, driving overall U.S. foreclosure activity to a 19-month high on an annual basis. The U.S. foreclosure rate in May was one in every 1,041 housing units with a foreclosure filing and a total of 126,868 homes across the country were at some point in the foreclosure process in May, up 1% from April and up 16% from the same time last year.
The increase in May was driven primarily by a jump in bank repossessions (REOs), which at 44,892 were down 1% from the previous month but up 58% from a year ago, and a 5% year-over-year increase in scheduled foreclosure auctions. The foreclosure activity includes foreclosure notices, scheduled auctions and bank repossessions.
Daren Blomquist, RealtyTrac Vice President said “May foreclosure numbers are a classic good news-bad news scenario, with the number of homeowners…
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(Above is a map detailing the investment purchases in 2014 by region.)
In a speech delivered earlier this year, Secretary for HUD Julián Castro, called 2015 “A Year of Housing Opportunity”. A recent report by The National Association of Realtors (NAR) revealed that investment home sales decreased 7.4% in 2014 to an estimated 1.02 million.
What does this mean for the ‘typical’ homebuyer?
Lawrence Yun, NAR’s Chief Economist gave some insight:
“Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the number of bargains available to turn into profitable rentals.”
This is great news for the housing market. If fewer properties are being sold to investors, they are instead being sold to American families who are entering the housing market in droves.
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Reverse mortgages are touted on T.V. by The Fonz and a former presidential candidate, but a report released today shows that seniors are increasingly frustrated with a product that can be confusing and end in a foreclosure.
The Consumer Financial Protection Bureau released a 15-page report detailing consumer complaints about reverse mortgages, which can be obtained by homeowners 62-years-old and older. It allows owners to access the equity they have built up in their homes and defer payment of the loan until they pass away, sell, or move out.
Read the bureau consumer advisory here.
But owners are still responsible for taxes and insurance payments on the home. If those payments aren’t made, the bank could repossess the house.
“Consumer complaints tell us that the complex terms of reverse mortgages continue to be misunderstood,” said Richard Cordray, director of the Consumer Financial Protection Bureau. “As more baby boomers choose…
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One for Our Side
Anti-eviction activists were thrilled with a November 25 ruling by the Federal Housing Finance Administration (FHFA), which seems to reverse the position taken by the Obama administration in federal court. Prior to the new ruling, homeowners foreclosed by Fannie Mae or Freddie Mac (the Enterprises)* found themselves in the painful position of watching their foreclosed homes being sold for much less than they paid for them.
Deadbeat Homeowners vs Deadbeat Banks
As the 2008 economic collapse caused over inflated real estate values to plummet, more than a fifth of all mortgage holders (7.5 million) discovered that – through no fault of their own – they owned more on their mortgage than their property was worth. By December 2013, the percentage of underwater (aka negative equity) mortgages had decreased to 13% (6.4 million) By December 4, 2014, thanks to an October “rally” in home prices…
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At the end of third quarter of 2014, the Census Bureau reported that the US home ownership rate hit 64.4 percent, the lowest level for the country since the first quarter of 1995. While individuals might be standing on the sidelines of the housing market, investment firms, real estate trusts and Wall Street institutions have been scooping up distressed houses — those in the foreclosure process or bank-owned — in bulk and renting them out.
More recently, sales of these problem properties are trending downward. According to the latest numbers from RealtyTrac, a real estate information company, distressed home sale and short sales – where the proceeds from selling the property will fall short of the home’s balance of debts – accounted for 12.6 percent of all residential property sales in November. That…
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