Average Days to Foreclose Up to 348 Nationwide; Over 800 Days in NY, NJ and FL; Annual Activity Down in 45 States; Nevada, Arizona, California Post Highest Rates

IRVINE, CA–(Marketwire -01/12/12)- RealtyTrac® (www.realtytrac.com), the leading online marketplace for foreclosure properties, today released its Year-End 2011 U.S. Foreclosure Market Report™, which shows a total of 2,698,967 foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 1,887,777 U.S. properties in 2011, a decrease of 34 percent in total properties from 2010. Foreclosure activity in 2011 was 33 percent below the 2009 total and 19 percent below the 2008 total.

The report also shows that 1.45 percent of U.S. housing units (one in 69) had at least one foreclosure filing during the year, down from 2.23 percent in 2010, 2.21 percent in 2009, and 1.84 percent in 2008. Total U.S. foreclosure activity and the U.S. foreclosure rate in 2011 were both at their lowest annual level since 2007.

“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” said Brandon Moore, chief executive officer of RealtyTrac. “The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages — particularly in states with a judicial foreclosure process.

“There were strong signs in the second half of 2011 that lenders are finally beginning to push through some of the delayed foreclosures in select local markets. We expect that trend to continue this year, boosting foreclosure activity for 2012 higher than it was in 2011, though still below the peak of 2010.”

December activity hits 49-month low, scheduled auctions up in fourth quarter
Foreclosure filings were reported on 205,024 U.S. properties in December, a decrease of 9 percent from the previous month and down 20 percent from December 2010. December’s total was the lowest monthly total since November 2007 — a 49-month low.

December Default notices (NOD, LIS) decreased 19 percent from the previous month and were down 23 percent from December 2010; Scheduled foreclosure auctions (NTS, NFS) decreased 12 percent from the previous month and were down 24 percent from December 2010; and bank repossessions (REO) increased 10 percent from the previous month but were still down 12 percent from December 2010.

Foreclosure filings were reported on 586,133 U.S. properties in the fourth quarter, a 4 percent decrease from the previous quarter and down 27 percent from the fourth quarter of 2010. Fourth quarter default notices were down 6 percent from the previous quarter and down 22 percent from the fourth quarter of 2010; scheduled foreclosure auctions increased 4 percent from the previous quarter but were still down 32 percent from the fourth quarter of 2010; and REOs decreased 11 percent from the previous quarter and were down 24 percent from the fourth quarter of 2010.

Nevada, Arizona, California post top state foreclosure rates for year
More than 6 percent of Nevada housing units (one in 16) had at least one foreclosure filing in 2011, giving it the nation’s highest state foreclosure rate for the fifth consecutive year despite a 31 percent decrease in foreclosure activity from 2010. Nevada foreclosure activity dropped 35 percent from the third quarter to the fourth quarter, driven primarily by a 70 percent decrease in default notices — the result of a new law (AB 284) that took effect in October requiring lenders to file an additional affidavit before starting the foreclosure process. The new law also increases the penalties for the use of fraudulent documents in foreclosure.

Despite a 28 percent drop in foreclosure activity from November to December — caused largely by a 41 percent drop in scheduled foreclosure auctions — Arizona registered the nation’s second highest state foreclosure rate for the third year in a row, with 4.14 percent of its housing units (one in 24) with at least one foreclosure filing in 2011.

California also experienced a substantial month-over-month drop in initial foreclosure notices in December — default notices there were down 38 percent from the previous month — but the state still registered the nation’s third highest foreclosure rate for all of 2011. One in every 31 California housing units (3.19 percent) had at least one foreclosure filing during the year, down from 4.08 percent in 2010 and 4.75 percent in 2009.

Georgia posted the nation’s fourth highest state foreclosure rate, with 2.71 percent of housing units (one in 37) with at least one foreclosure filing in 2011, and Utah posted the nation’s fifth highest state foreclosure rate, with 2.32 percent of its housing units (one in 43) with a foreclosure filing during the year.

Other states with 2011 foreclosure rates ranking among the nation’s 10 highest were Michigan (2.21 percent), Florida (2.06 percent), Illinois (1.95 percent), Colorado (1.78 percent), and Idaho (1.77 percent).

Foreclosure processing timelines continue to increase
U.S. properties foreclosed in the fourth quarter took an average of 348 days to complete the foreclosure process, up from 336 days in the third quarter and up from 305 days in the fourth quarter of 2010. The length of the average foreclosure process has increased 24 percent from 281 days in the third quarter of 2010, when lenders began to re-evaluate foreclosure procedures in earnest as the result of the so-called robo-signing controversy.

The average foreclosure process in New York has increased 37 percent during the same time period, and New York properties foreclosed in the fourth quarter took an average of 1,019 days to complete the foreclosure process — the longest of any state.

New Jersey documented the nation’s second longest average foreclosure process, at 964 days, and Florida documented the nation’s third longest average foreclosure process, at 806 days. Foreclosure activity in both these states dropped more than 60 percent from 2010 to 2011. All three states with the longest foreclosure timelines employ the judicial foreclosure process.

As you can see the potential to buy foreclosures are great, This is the time to buy.

Ruth Ortiz, Broker

www.ruthortiz.com

1. Find out how much home you can afford. Before you do anything else, find out how much home you can afford. To do this, look online for a quality mortgage calculator (Zillow has one that works well). Mortgage calculators show you how much home you can afford based on your income, an average interest rate, and the length of the loan.

You also need to calculate your debt-to-income ratio, which shows the amount of your income that goes toward paying your debts. The higher your ratio, the less likely you will qualify for a home loan. Find out if you can get a mortgage before you begin searching for your dream home. If your debt-to-income ratio is more than 36 percent, you should think about getting out of debt, or at least reducing your debt immediately.

Your credit score also plays a role in your loan eligibility. If you have a higher credit score, you will be eligible for better loan rates. If you have a low credit score, on the other hand, you should first learn how to improve your credit score before you get pre-approved for a loan.

[See 10 Ways to Start Earning Extra Money Now.]

2. Get pre-approved. Take the time to get pre-approved before you begin looking at homes. In fact, many real estate agents won’t work with you until you have received pre-approval for a mortgage. Regardless, you should look to get pre-approved anyway. You might find the perfect home, and then find out the bank denied your loan application. This heartbreaking scenario wastes your time and your agent’s time, too.

Going through the mortgage-approval process can be a frustrating experience, so be prepared. In addition to all of the paperwork, you have to answer a lot of very pointed questions about your income, net worth, and credit worthiness. If you have a 20 percent downpayment, a high credit score, and a steady job, then you have a better chance of being pre-approved for a loan.

3. Find a real estate agent. Once you’ve improved your credit score and you know how much home you can afford, you need to find a great real estate agent, Like Myself. Your agent acts as your representative, provides you with information about market prices, and helps you find a home. Finding a real estate agent you can trust can take time. Talk to friends, family, and co-workers for potential referrals, and use your intuition. If you feel uncomfortable with a real estate agent, keep looking.

4. Take stock of your financial situation, again. By the time you get ready to buy a home, you may be sick of thinking about money. After following each of these steps, look at your available income one more time, and review your short- and long-term financial goals. Ask yourself: Do I really want to invest $100,000 or more into a home? Do I want to stay in this neighborhood, or state, for the next several years? Or do I want to put that money towards some other dream?

Final thoughts. We’re currently experiencing a buyer’s market. You can find wonderful deals on homes, and you may qualify for a low interest rate. However, this also means that if you buy a home in the next year, you may need to stay in it for several years until home prices begin to significantly appreciate. Review your short and long-term goals carefully to make sure buying a home is right for you. Follow the steps outlined here, and when the time is right, get ready to buy your home.

If you’re looking to buy a home in the next few years, what steps are you taking to prepare?

Source: Heather Levin writes about real estate, green living, and sustainability on Money Crashers, a personal finance website aimed at educating young people about important financial issues

In the Moment, for the Moment

Your Realtor here in Downey, California
Ruth Ortiz, Broker
www.RuthOrtiz.com

California, Arizona post annual increases amid U.S. seasonal dip

BY INMAN NEWS, THURSDAY, DECEMBER 15, 2011.

After rising in October, foreclosure activity fell slightly on a monthly basis in November, but some signs point to a coming increase in early 2012, according to a report from foreclosure data site RealtyTrac.

One in every 579 housing units, or 224,394 properties, received a foreclosure filing — a default notice, scheduled auction, or bank repossession — in November. That’s a 3 percent drop from October and a 14 percent drop from November 2010 — the smallest year-over-year decline in the past year.

“Despite a seasonal slowdown similar to what we’ve seen in each of the past four years, November’s numbers suggest a new set of incoming foreclosure waves, many of which may roll into the market as REOs (bank-owned homes) or short sales sometime early next year,” said James Saccacio, co-founder of RealtyTrac, in a statement.

“Overall foreclosure activity is down 14 percent from a year ago, the smallest annual decrease over the past 12 months, and some bellwether states such as California, Arizona and Massachusetts actually posted year-over-year increases in foreclosure activity in November.

see chart data here http://www.inman.com/news/2011/12/15/realtytrac-november-foreclosure-activity-hints-rising-tide-charts
Source: RealtyTrac

The number of homes receiving default notices decreased 8 percent month to month and 9 percent year over year in November, to 71,730 properties. That figure is also a 9 percent decline from August, when default notices rose 33 percent from the month before.

That surge in default notices that began in August meant scheduled foreclosure auctions were at a nine-month high in November, Saccacio said.

Scheduled auctions rose 13 percent month to month but fell 17 percent year over year in November to 96,540. On a monthly basis, auctions rose more than 35 percent in several states, RealtyTrac said: California (63 percent), Washington (56 percent), Ohio (53 percent), New Jersey (44 percent), and New York (38 percent).

REO activity hit a 44-month low in November with lenders repossessing 56,124 properties. That’s a 17 percent drop from both October of this year and November 2010.

Nevada had the highest foreclosure rate in the nation for the 59th straight month in November despite “artificially low foreclosure activity,” RealtyTrac said, due to a new Nevada state law designed to crack down on documentation irregularities by foreclosing lenders — that law took effect in October. Foreclosure activity in the state rose 3 percent from October, but was down 43 percent compared to a year ago.

10 states with the highest foreclosure activity rates in November:

Source: RealtyTrac

Foreclosure activity in California rose 11 percent year over year and 15 percent month to month in November. The increase was driven largely by a jump in scheduled foreclosure auctions, which posted a 10-month high last month. Foreclosure filings in the Golden State accounted for 28 percent of the nation’s total — more than any other state.

Arizona also saw an annual increase in foreclosure activity — the state’s first since October 2010. Filings rose nearly 4 percent year over year and 1.3 percent month to month.

Other states that saw annual increases in foreclosure activity included Vermont (100 percent), New Hampshire (45 percent), Maine (29 percent), Rhode Island (20 percent), Delaware (16 percent), Louisiana (nearly 12 percent), Massachusetts (11 percent), South Carolina (4 percent), and Wisconsin (4 percent).

California accounted for nine of the 10 metropolitan areas with a population of 200,000 or more with the highest foreclosure activity rates. Stockton, Calif., had the highest foreclosure rate in November with 1 in 120 units receiving a foreclosure filing. The only non-California metro among the top 10 was Las Vegas, which had held the No. 1 spot for 22 months before October.

All nine California cities posted double-digit monthly increases in scheduled foreclosure auctions in November, including a 65 percent jump in Stockton and a 100 percent jump in Fresno.

Source: RealtyTrac

Courtesy of www.ruthortiz.com

The number of loans modified by the GSEs in the third quarter was 3 percent higher than that of the second quarter. The GSEs modified 83,600 loans during the third quarter.

About two-thirds of loan modifications completed during the third quarter included repayment reductions of more than 20 percent.

GSEs Announce Eviction Moratorium for the Holidays

It’s a daunting number, but the data show that it’s actually been on a fairly steady decline for nearly two years now.

At the start of 2011, the total number of non-current mortgages in the U.S. stood at 6,870,000. In January 2010, it was 8,118,000.

LPS’ more recent reports show the industry is slowly but surely chipping away at the number each and every month – the result of both loss mitigation workouts and removing loans that cannot be resolved from the inventory through foreclosure.

The HAFA program allows you to sell your primary residence if you are “upside down” or in a “negative equity” position.

What Does HAFA cost me?

Nothing, your mortgage company pays your Real Estate Agent.
What does it do for me?

The HAFA program:
Allows you to sell your primary residence if you have no equity.
Allows you to sell without any penalty or commitments to repay your mortgage company the difference or “Non-Recourse“.
Pays you…the seller…up to $3,000.00 for moving expenses or “Cash For Keys”.
Pays off your 2nd liens or 3rd liens without any “Re-course” or promise to repay.
How do I apply?

You must use a Licensed Real Estate Agent from your state to initiate the HAFA process
The process may require the following:
Financial Worksheet
Bank Statements
Most Recent Pay stubs or Unemployment Documentation
Hardship Letter of Explanation
Loss of employment.
Relocation of employment (100 miles from primary residence).
Death.
Divorce.
Most life altering circumstances that result in a loss or reduction of income.
2 years Federal Tax Returns or Explanation

How Long does it take?

The application process takes up to 10 days from the time all your Short Sale documents are submitted.
Once a HAFA approval is received, the sale will take  from 30 to 60 days to close, much ike a standard sale.

How will my credit be impacted?

Your credit may report “Satisfied for less than agreed” ,  ”Paid less than agreed”, “Settled”, etc…
Your credit score is very subjective and based on your specific debt to income ratio.
Most credit scores are impacted between 50 and 100 points.
Late Mortgage Payments or Default in payments may have a greater impact.

What if I owe back property taxes?

In most cases, your mortgage company will pay your late or defaulted property taxes.

Will HAFA pay IRS or State tax liens?

No, however, the IRS and most states, upon notification and submission of a few documents will allow the property to be sold as long as their is no “gain” to  the seller or what is known as a Short Sale.
Some considerations not covered by HAFA
Investor owned, 2nd or vacation homes, vacant land
Strategic Short Sale
Where you simply want to sell the property to get out from underneath the debt.
Freddie Mac or Fannie Mae backed loans
These two government backed entities will have a program that mirrors HAFA but as of this date, the program has not been rolled out by either entity.