Commentary: REO Isn’t Dead


More signs point to a recovery shaping up then point against it.  Please read the article below and let me know what you think.

The FHA Condos Approval Company, Inc.

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Is it possible that we have turned the corner on the nation’s real estate crisis? Some economic indicators seem to be pointing in that direction. The National Association of Realtors recently reported existing-home sales rose 4.2 percent in May 2013 to an annual pace of 5.18 million; this is the largest increase in sales since November 2009-a very positive sign that suggests we are on the right track.

Inasmuch as there are tangible measurements, which have evolved into positive forecast discussions, we are not out of the woods just yet. The foreclosure process remains in the spotlight.

Shortly after the 2010 robo-signing issue materialized and was reported on every news channel imaginable, REO sales throughout the country began a downward spiral. Meanwhile, the industry has seen a stronger surge of short sales as REO sales wind down.

Although the robo-signing issue seems to have been addressed, there are many states that still have a cumbersome foreclosure process. For example, in the state of New York, the amount of time it takes to complete a foreclosure is approximately 1,089 days; the national average is 414 days. Needless to say, REO inventory for some lenders is protracted as a result of these types of delays.

Despite the progress seen in many markets, there are some areas that remain in flux. For example, RealtyTrac reported that in 2012, one in every 32 homes in Florida received either a notice of default, auction notice, or was repossessed. As of June 2013 Florida held the nation’s highest foreclosure rate (one in every 355 homes with a filing during the month), followed by Illinois (one in every 525 homes), then Maryland (one in every 647 homes).

To read the complete article – please use the link below.


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