Learn how foreclosures and short sales can save you thousands with our expert advice.
I everybody, this is Lance Mohr, the Tampa real estate market expert and I’m going to go over the Tampa real estate market statistics for February. If you are looking at this on YouTube or another site you can just blow it up full screen. I know YouTube kind of distorts things with resolution. It is a little hard to read but if we look right here at the activity level in the market, you can see from statistics in January and February it is basically unchanged. Pending sales were up a little bit which is normal you know as we move into the months that are going to be up. I am a little surprised I have to admit so far that March is slow. It is a lot slower than I would think it would be. Generally speaking March is always the best month but anyhow sold sales in February are up and for the last couple of months as you know I’ve been telling you this is the way it is going to be. It is pretty much historic. It is like this all of the time. December generally there are a lot of closings because people want to get into a home before the end of the year and a lot of other reasons and then you have in January it dips off and then it starts to pick back up in February as well.
The one thing I’m going to point out, I’m going to get to another screen but first if you take a look at these, the short sales, you can see overall short sales are down below 10% which is normal and the foreclosed homes are picking up a little bit. There is still, it really depends on the price range if you are under 200,000 keep in mind there are a lot of fish swimming in that sea so things tend to go a little bit better and a little quicker than if you are say over $200,000 or even over $250,000 or $300,000. The higher you go obviously the less fish are swimming in the sea. So let me go over February’s statistics; a little bit more of a breakdown right here. You can see you have the active, you have the pending, and you have the sold. Now check this out, there’s in short sales there’s 1,346 pending short sales. The last month there were only 95 short sales that actually closed. That’s about 7%. That’s really, really low. I mean if you are looking for a short sale you better really, really like that home in order to you know wait that long for it and watch other homes pass you by because as you can see they are just not closing like they were. There’s again if you have been watching my other videos there’s reasons and I have explained that for that reason.
Anyhow if you look over here bank owned 480 bank-owned in the market and 213 closed. That’s about a 44% ratio on traditional sales, 1454 and 699 closed, that’s a little below 50% ratio about 48% ratio or so. So you can see most of what people are writing, you know I would really like to see about a 50% ratio. Somewhere I would say between 35 to 50% or over 35% ratio certainly not 7%. So just keep that in mind. You can look right here it is 70s. As you can tell the 95% of the short sales that closed let’s even take 466 short sales on the market once you start going over $200,000 they drop off and then the higher bracket you go the less there are. It is the same thing with bank owned as well. They are very similar and these you can see in the market up to $200,000 certainly from $100,000 to $200,000 15% of all the homes are short sale and 19% are all bank-owned properties out there. As soon as you go over $200,000 or $200,000 to $300,000 that 15% basically gets cut in half a little over half and so did the bank owned, so the short sales go from 15% to 7% and the bank owned go from 19% to 8% and then they drop off even more as you go higher priced. So hopefully this helps you understand where the market is. Let me just point out one more thing really quick. This is the inventory supply and demand so you can see we are in basically a stable market. It is still a slightly a seller’s market but it depends on what price range you are at. You can see down here $100,000 to $200,000 where most of the buyers are or there are lot of fish in the sea that I would like to say. The, so the short sales go from 15% to 7% and the bank owned go from 19% to 8% and then they drop off even more as you go higher priced. So hopefully this helps you understand where the market is. Let me just point out one more thing really quick. This is the inventory supply and demand so you can see we are in basically a stable market. It is still a slightly a seller’s market but it depends on what price range you are at. You can see down here $100,000 to $200,000 where most of the buyers are or there are lot of fish in the sea that I would like to say. They are at about 3.5 months of inventory so if you see a home you like don’t think about it too long or it is going to be gone.
When you start to get over $200,000 – even $300,000 – you have a little bit more time. But keep in mind; generally what you like someone else is going to like. If you have any question don’t hesitate to give me a call. If you like this video please share it. If you have any comments, questions, or statements write it in the comments. If you are watching this on YouTube or another site or even on my YouTube Channel. I do free home buyer webinars every week. You can go to my Facebook site, or go directly to them TBbuyerwebinar.com or TBsellerwebinar.com and register. I try to keep them about 30 minutes. They are very short and very to the point. No fluff at all. I hope this helps and I hope you have a great week. If you have any questions please reach out to me. Thank you very much. Visit my website tampa2enjoy.com.
Lenders have seen some of the worst economy conditions in the last few years, but new reports are indicating that subprime lending could be making a comeback. Subprime lenders have been around for some time, but during the financial crisis, many of them seemingly disappeared. According to online sources, subprime lenders are making a comeback with new nonprime loan offerings. Bill Dallas from NewLeaf Lending in California said, “There needs to be a solution for people who don’t fit in the box, and rebuilding nonprime lending is it.”
Subprime Mortgages' Modest Comeback
“Bill Dallas ran two subprime lenders that collapsed during the financial crisis. Now he’s back in business and plans to start offering what he calls nonprime loans later this year through his latest venture, NewLeaf Lending, based in Calabasas, Calif. “There needs to be a solution for people who don’t fit in the box, and rebuilding nonprime lending is it,” says Dallas. This time, he says, tougher lending rules will require borrowers to put down as much as 30 percent and document their income, credit, and work history.
Lenders are returning to the subprime market, although so far the lending is a fraction of what it was before the mortgage crisis. About $3 billion of subprime mortgages were made in the first nine months of 2013, matching the year-earlier period, according to Inside Mortgage Finance, a trade publication. In 2005, subprime originations reached $625 billion.”
Subprime lending explained in less than 2 minutes
With tougher lending rules out on the market today, consumers are sometimes required to put down up to 30 percent, including more documentation of your income, credit and work history. According to the numbers reported by Inside Mortgage Finance claimed that $3 billion of subprime mortgages issued in the first 9 months of 2013. A subprime loan is typically given out to a person that has a credit score of 660 or less. When the financial crisis hit, the lending companies that were giving out subprime loans were largely blamed for the crisis. Selling high-risk loans with adjustable interest rates that tripled after the first two years required little documentation from the buyer and that caused a huge wave of mortgage loan defaults.
That is when the federal regulators stepped in to restrict the number of high risk mortgages that ended up on the market. Lenders are now requiring credit scores that are much higher than in the past as well as more documentation. One credit group has started to offer subprime loans to those with a credit score between 550 and 599, but they were given a 9.75% interest rate and were required to come up with 30 percent as a down payment.
It would appear that subprime loans are making a comeback, but they are packed with requirements that many of today’s hardworking individuals simply cannot afford.
If you have any questions about the real estate market in Tampa Bay or foreclosures in Tampa please visit our Tampa2Enjoy real estate website.
Now that the first month of 2014 is over with and all of the numbers are in, it looks like banks had a little easier time with foreclosures as the number dropped to the lowest level it has been in 6 years. The bad news is that there have been more homes entering the foreclosure process for the first time. All that means is that those states are going to see a surge in the foreclosed homes sometime this year. The numbers are in and according to one source that tracks foreclosure listings, banks took back 30,226 homes in the last month. Of the states that posted an increase New York, Oklahoma, Connecticut and New Jersey were a part of that group. Home that are tied to loans that are not paid, usually end up as part of bank inventory and end up going to auction to the highest bidder. In the end, the bank is getting back only a portion of what was owed to them when the loan was originated.
Repossessions Drop to Lowest Level in More Than 6 Years
“Lenders repossessed fewer U.S. homes in January, bringing the number of completed foreclosures down to the lowest level in more than six years.
Even so, many states posted sharp increases in the number of homes entering the foreclosure process for the first time, a trend that raises the likelihood that those states will see a surge in foreclosed homes later this year.
While foreclosures remain elevated in many populous states, they have been steadily on the wane since the U.S. housing market and economy began to rebound after years of decline.”
Basically, when it comes to Tampa foreclosures the numbers have been a hot topic over the last 5 to 7 years for sure. Each quarter and even month, they are changing and as the housing market starts to pick back up, consumers gain confidence to spend their money and banks are getting more realistic loans on the market, the foreclosure numbers should continue to decrease on some scale. Foreclosures in Tampa, FL peaked in 2010 with more than 1.5 million, but have been declining each year since.
Visit your website to view all Tampa foreclosures for sale and free real estate videos about foreclosures.
Over the past 5 years the mortgage, appraisal and real estate industry has seen regulations cripple the housing market. Our politicians are over regulating the real estate industry due to their incompetence and deregulation that occurred in 1999.
Mortgage Credit Availability Decreased Slightly in November
“A significant number of loan programs allowing for more than 95 LTV and low-to-mid range minimum FICOs were either discontinued in November, or transitioned into programs with lower LTV maximums and/or higher minimum credit scores. Investor pull-back from programs with greater than 30 year terms and Interest-Only programs continued as the industry prepares for new regulations coming into effect in January 2014.
Some decreases to the index were offset by investors increasing their cash-out offerings to well-qualified borrowers.”
Senator Byron Dorgan warned us about the risks posed by the Gramm-Leach-Bliley Act that deregulation of the banking system.
Hopefully we can all put our thinking caps on and vote for our public servants that actually know something and have experience in business and real estate. The politicians can point the finger at everyone else, but if they want to know who is responsible all they need to do is look in the mirror.
If you are looking for real estate in Tampa click here. We have a lot of very educational videos on buying and selling a home.
It's no surprise that foreclosures are down over the last 12 to 18 months. With the real estate market being on fire, most homeowners have seen their home appreciate 10% – 20% over the last 12 months. With home prices increasing more people have equity in their home and therefore they can sell or not give it back to the bank and pay their debt.
Foreclosure Inventory Down 33%, CoreLogic Says
“The nation's foreclosure inventory continues a precipitous decline, falling 33 percent year-over-year in August, according to CoreLogic’s August National Foreclosure Report. About 939,000 homes were in some stage of foreclosure, down from 1.4 million in August 2012.
“The foreclosure inventory continues to improve, as exhibited by these recent numbers,” says Mark Fleming, CoreLogic's chief economist. “A surge in completed foreclosures and a rise in the foreclosure inventory is unlikely given continued house-price improvements and shortages of supply in many markets.”
The foreclosure inventory in August represented 2.4 percent of all homes with a mortgage compared to 3.3 percent in August 2012.”
Elizabeth Warren on illegal foreclosures. This is an amazing video that should really get you thinking about what the heck is going on in this country of ours. Good for Elizabeth!
The majority of homeowners doing short sales over the last 2 years are not financially strapped but they know there's a government loophole and they just don't want to pay their debt. With home price increasing more American's are holding on to the American Dream.
Last month in Hillsborough County 11% of the active homes for sale were foreclosures (short sales) – in September 2012 the percent was 17%.
If you have any questions about the real estate market in Tampa Bay visit www.tampa2enjoy.com.
Everyone desires to have their very own home. You can have the freedom and security if you own a house instead of renting one and you can definitely save a lot of money instead of it going to monthly rent and other related fees. However, it is very hard to acquire one especially if you are on a tight budget. You might be surprised on how much each one of them cost these days. This is one of the many reasons why more and more people are looking for foreclosures as an alternative. There are a lot of Tampa foreclosures available today and most of them are sold at very reasonable prices.
You can find a lot of homes for sale in Tampa when you look for them in the web. They are easily and accessible and is readily available for purchase. You can choose any location or area that you may want. However, you need to read a lot of different background information regarding the seller of the house to ensure you that they are capable of giving the much needed housing a person may desire. Your hard earned money is indeed involved and you don’t it to go to waste. So you need to be absolutely before proceeding with any transactions or deals. You should not worry about the quality of Tampa foreclosures since most of them are guaranteed safe and secured.
There are many advantages when one purchases foreclosure homes. As mentioned earlier, the price is indeed lower than most of the housing available today. You need to be updated with the ongoing sale because there are others who are also planning on buying them too. However, there is a good supply of homes in Tampa so you can choose the suitable home one may desire. Another great advantage when purchasing foreclosures is that you can move in right away. The seller will likely do the repairs and maintenance before handing the house over to you. You can definitely save a lot of time and effort because everything will be going smooth and steady. You will have the option to move in as soon as possible after the purchase. This is a very good feature especially if one is on a hurry and wants to immediately set the house up. When circumstances come up and you choose move out or live in a different area or region then there is no need to feel worried about your home. You have the option to sell it again at any given time and this is considered to be a very good business practice.
Owning that perfect house is easier when you view foreclosures in Tampa. It is way more convenient and you can have one right away. You can absolutely find many amazing deals in most areas of Tampa.
If you have any questions about Tampa foreclosures please click here to view all the foreclosures.We are experts in the Tampa marketplace.
For years, one of the greatest advantages of a mortgage was the ability to use the interest as a deduction when filing Federal income tax reports. As the fiscal cliff draws nearer, the indication that at least some of the home-mortgage interest deductions will be eliminated seems to be a reality. The implication is that high-income taxpayers will be affected the most, although anyone currently benefitting from this form of tax relief is rightly concerned about the impact on their own tax liability.
The expected Federal plan for slashing spending and increasing taxes has been nicknamed the fiscal cliff because of its unknown damage to the economy. Current exemptions end January 1 unless Congress resolves the problem. A meetings between President Obama, Senate Majority Leader Harry Reid, House Speaker John Boehner and Erskine Bowles, involved in the formation of the group Campaign to Fix the Debt, is scheduled for the last of November.
Boehner states a balanced approach is need to deal with the national debt, deficit and an opportunity to create jobs. The Campaign to Fix the Debt group offered a plan a year ago regarding a tax code overhaul and impressive spending cuts for the purpose of adding nearly $800 billion in new revenue. Many of the changes are in government health programs, including Medicare.
Foreclosure property in Tampa and other cities is no longer offering the huge savings found during the worst of the latest recession. If the mortgage interest tax break is reduced or eliminated, that will probably result in a slowdown for purchasing any type of home. The effect could be placing the economy back into a downward spiral, destroying the recent gains.
Gary Thomas, president of the National Association of Realtors, recently reinforced NAR’s belief that America’s housing market and economic stability relies on the mortgage interest deduction.Because elimination could endanger property values, the Association will oppose exclusions and modifications to the ability to deduct mortgage interest, which saved taxpayers an estimated $83 billion in taxes for 2010.
The home-mortgage interest deduction, based on the theory of encouraging home ownership, has proven to be a successful idea. Even though only the first million dollars of debt incurred by building, improving or buying a home falls under this provision, it is a valuable deduction. Options being considered for a possible revision include capping the amount of eligible mortgage debt and ending the interest deduction for second homes. Homeowners and potential buyers are anxiously awaiting the results of further meetings and the ultimate decision.
Where have the bargain bank-owned properties in Tampa Bay gone? Prospective homebuyers who have put off taking advantage of the significant savings on foreclosed homes now owned by the bank are starting to ask that question. The hot tip for several years is seek out a foreclosure for an excellent bargain. The low prices were a result of the banks trying to unload millions of dollars of worthless debt from their books. Zillow recently announced the results of a study showing numbers for mid to late 2012, demonstrating the decline of savings in foreclosure purchases across the nation.
Bank owned properties in Tampa sold for nine percent less than comparable non-REO sales in September 2012. The discounted price slipped just .5 in twelve months, but represented a twenty-nine percent change from discounts of November 2008. The current Orlando REO discount of 4.6 percent is higher than the two percent discount in September 2011, but far less than the 24.4 percent discount during the first month of 2010.
The Miami-Fort Lauderdale area painted an equally dismal picture:
- Current REO average savings 2.9 percent.
- Decline of nearly 7 percent in September 2011.
- Overall drop from the August 2008 peak of 22.7 percent.
The trend is similar on a national level:
- Metro area foreclosure discounts are down approximately 77 percent.
- Some metro areas peaked at over 30 percent in 2008/2009.
- All metro areas show declined discounts.
The national September 2012 REO discount average was 7.7 percent, a drop of 1.4 percent over the past 12 months. The higher the demand is for homes in a certain area, the less foreclosure discount is offered. Two cities with high housing demand, Las Vegas and Phoenix, offer no discount on foreclosure re-sales, but successfully market those homes due to the limited number of homes available for purchase
The rumble about reductions in foreclosures in Tampa, FL has been going around for a few months and recent figures from CoreLogic support that news. While there were 75,000 completed foreclosures in the United States for August 2011, the national total for August 2012 was only 57,000.
On a state level, Florida was second (California earned first place) in completed foreclosures, with nearly 12 percent of the those in the nation from August 2011 through 2012. The foreclosure inventory for the state, which includes any mortgaged home in some part of foreclosure, fell just slightly over one percent in that 12-month period.
According to records, there has been a drop of completed foreclosures from May through August. An extensive loan modification program had some influence, as homeowners qualified for lower interest and lower payments. That allowed them to retain their property and build more equity, since more of the payment goes towards the principal. In addition, some properties qualified for a reduction of principal if payments were made timely, another reason to make payments timely.
There is still the option of a short sale, as well as buyers with cash or ready financing to get the home of their choice.
Florida had the highest foreclosure inventory at 11 percent of all mortgaged homes, followed by New Jersey at 6.5 percent. That is yet another reason for those looking at bank-owned properties in Tampa and the area around it to act as soon as possible. The bargains are still available, but the numbers are dropping. Of course, that is a good sign for the current homeowner and hopefully the trend will continue.