Foreclosures & Short Sales
What’s the Impact of Short Sales and Foreclosures on the Greater Cincinnati Real Estate Market?
April 4th, 2012 categories: Foreclosures & Short Sales
The Campbell Inside Mortgage Finance HousingPulse Tracking Survey tell a chilling story about the financial impact distressed properties are having on today’s real estate market.
The chart below covers the midwest (which includes Michigan’s ailing real estate market) but the numbers tell a compelling story.
Campbell/Inside Mortgage Finance HousingPulse Tracking Survey
For the previous 12 months in the “Industrial Midwest” average sale prices for:
- damaged foreclosure property $60,473
- move-in ready foreclosure $115,545
- short sale $149,762
- no-distressed (normal) $198,564
The impact on local neighborhoods reflects that a “normal” property can sell for three times as a damaged foreclosed property. And if you are thinking about selling and the house next door appears to be headed for foreclosure- your only hope is that the current owners stay in place and maintain the property until it goes to auction. “Cash-for Keys” programs are gaining traction among lenders who are finally beginning to realize the declining value of vacant properties. (Many lenders have “cash-for-keys” programs in place not for foreclosures but also short sales- so check with your lender about details.)
The overall real estate market for greater Cincinnati has been described by many as cautious!
The mix in the economic climate has kept the region fairly stable and we have a moderate number of REO foreclosure activity. But the overall supply of housing remains high and the buyer demand is still low…but is showing signs of extra activity. So things in the local real estate market are inching toward normal- whatever that is today. Still not sure about impact of distressed properties in your neighborhood or need more details on “cash for keys”- call or email me.
| Discussion: Comments Off
Where to Look for Foreclosure and Short Sale Information for Greater Cincinnati
March 12th, 2012 categories: Foreclosures & Short Sales
Local newspapers, in our case the Cincinnati Enquirer, would like to be your source for one-stop shopping for greater Cincinnati short sales and foreclosures. However like many sites promising eager consumers the scoop on distressed properties- it contains details on some-but not all- of the information buyers may need.
Truth be told- finding the short sale and foreclosure property information is not just a simple black and white search- the information is spread out on several real estate and government sites.
It’s not a new offering- just something getting a little more hype on the front page of the Sunday edition, so I decided to see if the site had changed. You can search for all types of real estate- but the results don’t include all the properties for sale in greater Cincinnati. If you’re going to search for real estate listings you can try sites like Realtor.com or Yahoo. Serious buyers know the easiest way to search for local real estate is by clicking on one the local company’s sites.
Now back to the Enquirer’s site- if you’re looking for foreclosures you can search by address, street or zip.
The results for 45208 – include 27 foreclosure listings and for 45069 -155 foreclosure listings.
The source for most of the public information about foreclosures and short sales is RealtyTrac . And according to them 45208 has 6 foreclosures for sale and 130 properties in foreclosure. 45069 has 4 foreclosures for sale and 68 properties in foreclosure.
Another source for foreclosures would be the official HUD site. And a quick check shows 28 properties in foreclosure in Hamilton County, 7 in Warren County, 9 in Clermont County and 14 in Butler County. You can use the site to find and bid on properties available through HUD.
Remember Realtors(c) have access to all the resources so if you are tired of looking at partial and/or incomplete information..or need help submitting an online bid, call for help.
Finally on the Enquirer site you can search for sale information where the data is pulled from County Auditor sites-but in most cases, it easier to go directly to the Auditor’s sites and search.
As you can see lots of sources and resources available to check on foreclosures and short sales throughout greater Cincinnati and at times it’s confusing. You see a “for sale” sign, call your Realtor and we cannot find anything in the Cincy MLS.
Sometimes it requires searches through several sites to nail down the property details. Overwhelmed or confused- call or email for help.
| Discussion: Comments Off
How to Avoid A Mess at the End of the Short Sale Rainbow!
March 8th, 2012 categories: Foreclosures & Short Sales
Simple questions for greater Cincinnati real estate junkies!
What has hundreds of pages of paper- but isn’t a book?
Sometimes has a longer gestational time frame than humans?sibcycline.com
Often requires clients to resign and resubmit the same document dozens of times?
And sometimes at the end of very long wait time, instead of seeing a rainbow some clients find themselves still hounded by bill collectors?
It’s not to hard to guess that I’m describing a “short sale“!
Most sellers seem to think their troubles will disappear after successfully closing the short sale of their property -but this isn’t always true. In case you don’t know a “short sale” is when the lender agrees to take less than what is owed when the property sells and as part of the deal the remaining mortgage amount due is “forgiven”…and the seller moves on with their lives. Lately I’ve been getting a lot more calls from short sale sellers- who have closed the deal- but are now getting bill collection calls from lenders. Can this really happen- unfortunately the answer is yes.
Sellers using the short sale process need to secure forgiveness documents “in writing” from all the lenders and lien holders. Many of today’s short sales have multiple mortgage/loans filed against the property and because they agree to take a lower amount of payment from the sale- does not mean they “forgive” the rest of the loan. So by the time you close if you don’t have written documentation from all the lenders that the remainder of the loan is forgiven- be prepared for requests to pay.
Many sellers know this and decide to move ahead when only the largest loan amount, usually the first mortgage, is forgiven. They figure they can afford to pay off the remaining loans. I’m concerned about the sellers who don’t understand the process finding out after the closing that their “rainbow ending” is just the beginning of more financial stress.
In order to avoid unhappy short sale endings it’s more important than ever for today’s sellers to work with a real estate agent with a “short sale” track record who understands and can explain each step of the process. If you need help with a short sale call or email me.
| Discussion: Comments Off
What Lenders are in Trouble with Mortgages in Greater Cincinnati?
February 10th, 2012 categories: Foreclosures & Short Sales, Informational
You can find out at HUD”s Neighborhood Watch.
This is the website for Housing and Urban Development’s (HUD) Neighborhood Watch. Neighborhood Watch is where lender’s loan performance on FHA loans and how it compares to the national and local averages. The site is a good place to check out potential lenders- the riskier ones have a “compare ratio” between 150%-199%.
Click on the “Early Warnings” tab to review lenders performance on FHA loans only. Don’t forget that some lenders are national and others use different names in each state. If you need help deciphering the information or the names of mortgage lenders in greater Cincinnati- call or email me.
| Discussion: Comments Off
Less Distressing News for Ohio Homeowners
February 4th, 2012 categories: For Sellers, Foreclosures & Short Sales
It’s Super Bowl weekend and we’re all busy preparing some unhealthy food types to enjoy while watching the game. So let’s keep the news short and sweet.
CoreLogic recently published real estate numbers for December and the real estate market in Ohio is beginning to look a little healthier. They toss around some numbers which help both Realtors and consumers get a better understanding about the impact distressed properties on today’s local Cincinnati real estate market as well as the entire state of Ohio.
CoreLogic’s 12 month Home Price Index for Ohio reflects some improvement-but look at how much distressed properties are impacting us:
Sales of all single family homes -7.7%
Sales of SFH minus Distressed Properties -0.2%
The distressed properties not only affect the neighborhoods- the glut has impacted appraisals too. The sooner lenders feel some pressure to institute a viable market responsive way to sell distressed properties Ohio and other states will keep suffering the effects of the glut on prices. It’s not about leveling the playing field- it’s about cleaning up the mess so everybody can begin to enjoy some stability in the housing market.
So whether you’re rooting for the Patriots, the Giants or are just looking forward to watching the commercials and eating junk food….it’s good to know the local real estate market is chugging along too.
| Discussion: Comments Off
