Foreclosure Trends - Foreclosure Market

We had the opportunity to attend a meeting at Prudential Ca Realty, Orange County where Mr. Rick Sharga, Sr. V.P. at RealtyTrac, gave a Foreclosure Market recap and spoke about the 2010 and beyond Foreclosure Market Outlook.  RealtyTrac collects data from over 2200 counties across the country, covering 92% of all US households. RealtyTrak has more coverage and more detailed information than any other national provider and consults with the US Government, FDIC and the US Senate, just to name a few. Rick is a sought after source and is interviewed by all the major news networks on a regular basis.
 

Foreclosure Market Recap: 2005-2008 (The Foreclosure Tsunami)

1. Foreclosure activity has increased on a year-over-year basis for 44 consecutive months.
   Unlikely to slow down until 2011
2. In 2008, 2.3 million households received a foreclosure notice.
3. July 2009 was the highest month ever in terms of foreclosure activity.
   Over 361,000 US households received notice of foreclosure... that is 6-times higher than 4-years ago.

Foreclosures Market Recap 2009: The Second Wave

1. Driven by umemployment
   a) Unemployment now over 10%
   b) Estimate of 1 foreclosure for every 6-10 jobs lost
2. The big wave of Option ARMS will hit in 2nd quarter-2010
3. 60% of Foreclosures have been in 6-states,  but will now spread to other states with high unemployment such as Idaho, Illinois, Oregon and Utah
4. 10% of all mortgages are deliquent
5. 6-million loans are delinquent or are in foreclosure
6. 500,000 REO properties are not on the market

2010 and Beyond: Projections

1. Foreclosure activity will probably peak in 2010.
   a) No stability until 2011
   b) Will not return to normal until 2012
   c) REO inventory will remain high until 2013
2. "Strategic Defaults" will increase (where the family decides to short sale their home as they are so far upside down)
3. Current loan modification programs will not be effective to stop the trend
4. Projected to be 4,500,000 total US foreclosure filings in 2010

The most likely scenerio is that these homes will be marketed very slowly over the next 3-4 years so not to have another housing market crash. Overall, we are in for a long, slow recovery.

If you or someone you know is behind on your mortgage payments and facing a foreclosure, you do have options. A short sale may be the answer to saving you, your family and even some of your credit. For a private, confidential consultation, contact The Hartanov Team direct at 949.481.3739.

More information about Short Selling your home in the Southern California, Orange County area and how we can facilitate the sale with our team of specialized and experienced Short Sale experts can be found at Short Selling Your Home.

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