REO listings at lowest level since 2009
We have recently seen a lull in the number of foreclosure (REO) listings in Mammoth and Mono County. In most of 2009 and half of 2010, the inventory stayed below 10. Then, we hit peak inventory in the spring of 2011 at 16.
After this peak, REO inventory has steadily declined to where it is today, at only 2 bank-owned condos on the market.
Is the end in sight? Are we done with foreclosures?
After this peak, REO inventory has steadily declined to where it is today, at only 2 bank-owned condos on the market.
Is the end in sight? Are we done with foreclosures?
Inman News reports, "The improving job market and economy is helping push mortgage delinquencies and foreclosure starts down, but the percentage of loans in the foreclosure process remains stubbornly high, especially in states most affected by robo-signing issues. ... In "judicial foreclosure" states where courts handle most foreclosures, 6.8 percent of mortgages were in foreclosure at the end of 2011. In "nonjudicial" foreclosure states where most foreclosures are processed outside of the court system, loan servicers are clearing the backlog more quickly, and 2.8 percent of mortgages were in foreclosure.
Five states accounted for more than half of all loans in foreclosure -- Florida, California, Illinois, New York and New Jersey. All but California are judicial foreclosure states."
The reasons for REO backlogs may be different in Mono county. According to our local title company report, there are still just as many homeowners behind on their payments. But more often these homeowners are able to successfully negotiate a loan modification and keep their property or they are declaring bankruptcy, both of which prevents the property from going the way of the REO. In addition, more properties are being sold as short sales, which also prevents foreclosure.
While the REO inventory during the past 3 years fluctuated between 2-8% of the entire condo inventory on the market, REO's have accounted for a higher percentage of all condo sales.
In 2009, REO sales were 17% of all sales. In 2010, that number grew slightly to 18% and then peaked in 2011 at 27%. So far in 2012, REO sales are only 14% of all sales (mostly due to the limited inventory.)
Because their pricing has been so attractive, many buyers have snapped up these types of properties. I feel that sometimes it is just the label of 'foreclosure' that creates a perception that the condo is going to be a great deal. It gets buyers' attention and many times ends up creating a bidding war. REO's have sold at 91% of their original asking price vs. 88% for regular sales but have much faster with an average days on market of 78 days vs. 163 days for regular sales.
You can always go to www.MammothLakesForeclosures.com to see the latest foreclosures on our market (including homes and vacant lots and in areas from Bishop to Bridgeport) and see if our inventory says low or rises in the next few months. -Dennis Cox & Tara Peterson
Five states accounted for more than half of all loans in foreclosure -- Florida, California, Illinois, New York and New Jersey. All but California are judicial foreclosure states."
The reasons for REO backlogs may be different in Mono county. According to our local title company report, there are still just as many homeowners behind on their payments. But more often these homeowners are able to successfully negotiate a loan modification and keep their property or they are declaring bankruptcy, both of which prevents the property from going the way of the REO. In addition, more properties are being sold as short sales, which also prevents foreclosure.
While the REO inventory during the past 3 years fluctuated between 2-8% of the entire condo inventory on the market, REO's have accounted for a higher percentage of all condo sales.
In 2009, REO sales were 17% of all sales. In 2010, that number grew slightly to 18% and then peaked in 2011 at 27%. So far in 2012, REO sales are only 14% of all sales (mostly due to the limited inventory.)
Because their pricing has been so attractive, many buyers have snapped up these types of properties. I feel that sometimes it is just the label of 'foreclosure' that creates a perception that the condo is going to be a great deal. It gets buyers' attention and many times ends up creating a bidding war. REO's have sold at 91% of their original asking price vs. 88% for regular sales but have much faster with an average days on market of 78 days vs. 163 days for regular sales.
You can always go to www.MammothLakesForeclosures.com to see the latest foreclosures on our market (including homes and vacant lots and in areas from Bishop to Bridgeport) and see if our inventory says low or rises in the next few months. -Dennis Cox & Tara Peterson
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