Foreclosures filings fell 5 percent between March and April of this year, and by 11 percent as compared to one year ago. The data comes from RealtyTrac. The foreclosure-tracking firm tallied fewer than 189,000 foreclosure-related actions last month — the fewest number since July 2007.
Rapidly declining foreclosure figures are another signal that the U.S. housing market may already be in recovery.
Rapidly declining foreclosure figures are
another signal that the U.S. housing market
may already be in recovery
According to RealtyTrac’s methodology, a “foreclosure filing” is any one of the following foreclosure-related events : (1) A default notice on a home; (2) A scheduled auction for a home; or, (3) A bank repossession of a home.
All three showed improvement in April:
- Default Notices were down 4% from March 2012
- Scheduled Auctions were down 4% from March 2012
- Bank repossession were down 7% from March 2012
Furthermore, April’s bank repossessions figure is notable. With just 51,415 homes reclaimed by banks, last month’s total represents a 26 percent drop from April 2011, and is the 18th consecutive month during which bank repossessions fell. This figure suggests that banks are seeking alternatives to foreclosure, including loan modifications and short sales, when appropriate. Indeed, the National Association of Realtors reports that 11 percent of April’s home resales were short sales.
Whether you’re a first-time buyer or an experienced one, homes in various stages of foreclosure are alluring. They’re readily available and often come cheap as compared to non-distressed properties. However, make sure to look beyond just the “list price.
Foreclosed homes are often sold as-is and the properties could be run-down or rife with defects that render it uninhabitable by local code authorities unless renovated. Sound complicated? It’s not, when you have a team of distressed home specialist to work with from home shopping to the last installed baseboard. Let me tell you how the Department of Housing and Urban Developement’s FHA Home Renovation Program.