Friday, July 28, 2006

'Repo Man May Be Coming' To A Market Near You

Three reports on foreclosures around the US. "Southeastern North Carolina is bucking a nationwide increase in foreclosures, at least for now. But others report signs the repo man may be coming this way as conditions cool. 'Folks who are in foreclosure don't really have the time to wait like everybody else,' said Hugh Stewart, an investor (who) buys distressed properties. Stewart said he had seen a recent upswing in calls from people trying to escape foreclosure."

"Pam Wooddell, one of the area's most active Realtors in foreclosed properties, said she had a spike in requests for 'broker price opinions' this winter, often a precursor to foreclosures months later."

"BPOs, as they are known, are a sort of curbside assessment of a property's sale price, which lenders often request for a property in arrears. Typically the ball doesn't get rolling on a foreclosure until months of missed payments, but lenders want to know sooner than that the value of property they might end up acquiring, Wooddell said."

"The BPO buildup began last summer, peaking in the winter. In February, she had 217 BPOs, more than double the number she had during the same time last year, she said."

The Denver Post. "While new construction of rental properties has tapered off, experts said the decrease in the vacancy rate can also be attributed to trouble in the for-sale housing market. 'Due to increases in foreclosures and interest rates, for-sale housing is becoming less attractive to some people,' said Ryan McMaken, community-relations coordinator for the Colorado Division of Housing."

"Colorado notched the highest home-foreclosure rate in the country in the second quarter, according to a provider of foreclosure listings. People displaced from their homes often turn to rental properties."

The Traccy Press in California. "Nearly 350 homeowners in Tracy are on the verge of losing their homes because they’ve fallen behind on their repayments, and auction dates have been set for 63 of the properties, according to a foreclosure monitoring company."

"San Joaquin’s foreclosure rate was the highest in the state between April and June, with one out of every 154 homeowners behind on repayments at some point during the three-month period. That’s more than double San Joaquin’s foreclosure rate at the same time last year, and three times the California average."

"Karl Enzman, a director at the Central Valley Association of Realtors, said many homebuyers bought their properties 'with too rosy an outlook of the market.' He said many of these buyers couldn’t afford to make their repayments when bond-market pegged variable interest rates rose, forcing them into foreclosure."

"Countrywide Home Loans consultant Lynda Mendoza said that some homeowners lose their homes after becoming unemployed but that many foreclosures are the result of poor financial planning. 'They’re talked into buying a house that they can’t afford,' said the loan agent, who claimed none of her clients have gone into foreclosure."


At 7:21 AM, Blogger OC BEAR said...

It would sure be interesting to see some of these "BPO's", and how the $# compares to the comps in the area and what the cuurent owner paid(or owes).

Just for fun of course. Probablly still way over priced in an obviously falling market. Would be interesting anyway.


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