As reported by Realty Trac, the foreclosure rates continue to rise, that’s no surprise. Look at the below story not as DOOM and GLOOM, but a great buying opportunity. I was in a town called Lathrop a couple weeks ago and you'd almost think it was a ghost town; but 3000+sq ft for about $100 a sq ft and less?? What a deal. The issue with the entire inventory not moving in a buyers market is pretty clear - many banks are somewhat out of touch; just like they were out of touch in the run up, they appear to be a step or two behind in the recovery process. Some may know or may not know but once a bank takes back a home the price is reduced drastically and thus REO / Bank Owned homes become the hottest (if you can say that in this market) home(s) on the MLS and thus attracts more buyers. Homes are equal to rents and thus many people renting can afford buying - when is the last time you heard that. The issue is the down payments, and the banks inability to participate in DPA (Down Payment Assistance). Simply put DPA is when the seller gift's the buyer 3% to 6% (does not have to be paid back) and the buy is then able to utilize FHA loans etc. Banks may be wise to look at metrics of length of RENTAL HISTORY and Monthly Rent Payments plus credit history. Many people are being left out of one of the best buyers market in years. If you’re looking to buy and are getting rejection after rejection utilizing government back loans from FHA that is coupled with DPA contact me (michael@valleyfinance.com) and I can get your FHA loans accepted with DPA. "The total number of U.S. properties with foreclosure activity in April was the highest monthly total we've seen since we began issuing the report in January 2005," said James J. Saccacio, chief executive officer of RealtyTrac. "Although only about 2 percent of households nationwide are in foreclosure, these properties contribute to already bloated inventories of homes for sale, and put downward pressure on home values. Areas of California, Florida, Nevada and Arizona continue to be particularly hard-hit. Property tax bases are eroding, putting municipal budgets in peril. For example, the city council in Vallejo, California - part of a metropolitan area with a foreclosure rate that ranked sixth highest in the nation in April - last week voted to have the city file for bankruptcy."
Nevada, California, Arizona post top state foreclosure ratesDespite a 5 percent month-over-month decrease in foreclosure activity in April, Nevada continued to document the nation’s highest state foreclosure rate. One in every 146 Nevada households received a foreclosure filing in April, 3.6 times the national average, and the state’s foreclosure activity was up 95 percent from April 2007. California posted the second highest state foreclosure rate in April, with one in every 204 households receiving a foreclosure filing during the month. Foreclosure filings were reported on 64,683 California properties in April, down less than 1 percent from the previous month but still the most of any state and an increase of 112 percent from April 2007. With one in every 242 households receiving a foreclosure filing in April, Florida documented the nation’s fourth highest state foreclosure rate. Foreclosure filings were reported on 35,264 Florida properties during the month, the nation’s second highest total. Florida foreclosure activity increased nearly 17 percent on a month-to-month basis and 146 percent on a year-over-year basis. California and Florida cities account for 9 of top 10 metro ratesSix California cities documented foreclosure rates that ranked in the top 10 among the 230 metropolitan areas tracked in the report. Merced took the top spot, with one in every 66 households receiving a foreclosure filing during the month, followed by Stockton at No. 2, Modesto at No. 3 and Riverside-San Bernardino at No. 4. Other California cities on the list were Vallejo-Fairfield at No. 6 and Bakersfield at No. 8.
