As usual, The metroplex real estate market continues to shine above the national average. Although numbers show that foreclosures are declining locally and nationally, speculation concurs that motivated sales from distressed property owners are not on the decline. My assumption is that banks, realtors, and homeowners have other options besides filing for foreclosure. The second article below states the increase in shortsales that are up 10% nationally from the previous year.
Fewer Fort Worth-Arlington homeowners delinquent on mortgage payments
The Fort Worth-Arlington mortgage delinquency rate has decreased, CoreLogic research firm said today.
In August. 5 pecent of mortgage loans were at least 90 days delinquent, compared to 5.4 percent in August 2010.
In Texas, the mortgage delinquency rate fell to 4.5 percent in August, from 4.9 percent a year ago. And nationally, the rate fell to 7.1 percent, down from 7.8 percent.
The foreclosure rate, though, which measures the percentage of loans in some stage of the foreclosure process, was 1.6percent in August, up from 1.5 percent in August 2010, CoreLogic said.
In Texas, the foreclosure rate was 1.5 percent in August, up from 1.4 percent in August 2010. And nationally, the rate rose to 3.4 percent from 3.2 percent in August 2010, figures show.
Read more: http://blogs.star-telegram.com/dfwjobs/2011/10/fewer-fort-worth-arlington-homeowners-delinquent-on-mortgage-payments.html#ixzz1cZAEeV5u
Number of short sales on the rise
Short sales — when lenders allow financially strapped borrowers to sell homes for less than their unpaid mortgage — accounted for 12% of home sales nationwide in the second quarter. That's up from 10% in the same period last year, says researcher RealtyTrac.
The increases were sharper in some states, including California, Nevada, Michigan, Georgia and Colorado, the data show.
In Colorado, short sales were 17% of all sales in the second quarter, up from 10% a year earlier. In California, they made up 25% of sales, vs. 18%.
Bank of America, the largest home mortgage servicer, expects to complete more than 100,000 short sales this year — more than double what it did in 2009, the bank says.
Wells Fargo Senior Vice President J.K. Huey says short sales have been "steady to slightly" up in recent months, partly because there are fewer bank-owned houses for sale in some markets, and that has forced buyers to pursue more short-sale properties.
Short-sale homes, which often remain occupied until sold, tend to retain values better than those that go through foreclosure. That helps values of neighboring homes.
In the second quarter, short-sale homes sold at a 21% discount to non-foreclosure homes, while bank-owned homes went at a 40% discount, RealtyTrac says. Short sales may also reduce losses for loan owners because they avoid full foreclosure costs. Borrowers may qualify for new mortgages sooner after a short sale than after a foreclosure.
"Short sales are a very positive solution," says BofA Vice President Dave Sunlin.
Short sales peaked at 16% of the market in early 2009, RealtyTrac says. Realtors say there should be more short sales and that they should get done faster.
"We lose buyers constantly because short sales take too long," says Beth Peerce, president of the California Association of Realtors. Short sales completed in the second quarter took 245 days, on average, RealtyTrac says. In a June survey, 77% of California Realtors called short sales difficult or extremely difficult; 15% said clients were foreclosed on while pursuing short sales.
Many short-sale efforts fail because homeowners aren't eligible because they can still make payments, or purchase offers are too low, says Wells Fargo's Huey. Loan owners may not agree on sale prices, either, she says. In most states, lenders can try to recoup short-sale losses from homeowners unless balances are forgiven. At BofA, Sunlin says balances are forgiven more than half the time.
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