Archive for Foreclosures
How To Buy Bank-Owned Homes In A Period Of Rising Inventory
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Foreclosure filings rose close to 20 percent nationwide last month versus February, according to foreclosure-tracking firm RealtyTrac.com, and for the 13th straight month, total filings topped 300,000.
In addition, bank repossessions reached an all-time, quarterly record. Through the first three months of 2010, banks reclaimed more than 257,000 homes.
Nonetheless, 4 states dominated foreclosure activity nationwide.
California, Florida, Arizona and Georgia accounted for more than half of all bank repossessions. It’s a disproportionate distribution of foreclosures. Together, the 4 states represent just 23 percent of the overall U.S. population.
The RealtyTrac report revealed some other interesting statistics, too.
- Foreclosure activity was up in 40 out of 50 states last month
- Bank repossessions rose 9 percent versus the same quarter last year
- For the 13th straight quarter, Nevada topped the state foreclosure rate
Regardless of where you’re buying, foreclosures and REO are making a profound impact on pricing and product. Distressed homes are 35 percent of the overall resale market.
There’s excellent value in foreclosures out there if you know where to look, but keep these points in mind:
- Buying bank-owned homes can take 120 days to close or more. Be flexible.
- Foreclosures aren’t always listed for sale publicly. Some inventory is privately-held.
- Bank-owned homes are often sold “as is”. There may be defects that render the homes mortgage-ineligible.
The REO market can be different from the traditional “existing home” market. Therefore, if you have an interest in buying REO, be sure to talk with an experienced real estate agent first.
Foreclosures Per Capita | February 2010
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According to foreclosure-tracking firm RealtyTrac, foreclosure filings topped 300,000 for the 12th straight month last month as 1 in every 418 U.S. homes received a foreclosure filing.
It’s a small improvement from January and a just 6 percent increase over February 2009.
On a per-capita basis, foreclosure density varied by state:
- Nevada : 1 foreclosure filing per 102 homes
- Florida : 1 foreclosure filing per 163 homes
- Arizona : 1 foreclosure filing per 163 homes
- California : 1 foreclosure filing per 195 homes
Also, as in January 2010, foreclosures across the country were concentrated. 10 states beat the national Foreclosure Per Capita average; 40 states fell below. Like everything else is real estate, it seems, foreclosures are local.
For today’s Carmel home buyers, foreclosures represent an interesting opportunity.
Homes bought in various stages of foreclosure are often less expensive than other, non-foreclosure homes. It’s one reason why distressed home sales account for 38 percent of all resales. However, less expensive doesn’t always mean less costly. A foreclosed home may be in various stages of disrepair and they’re often sold as-is, as policy.
Buying new or used in Geist can be cheaper than buying broken-down.
Therefore, if you’re in the market for a bank-owned home, make sure you know what you’re buying before you sign a contract. Have qualified professionals review and inspect the property, as needed. Damage to pipes or the property’s structure, for example, may not be so obvious on a walk-though and you’ll want to know about it before you buy.
Also, foreclosed homes are federal tax credit-eligible. Buyers must be under contract by April 30, 2010 and closed by June 30, 2010.
Record-Setting Marion County Tax Sale Auction Starts March 18th
Posted by: | CommentsProperties in Marion County with delinquent taxes, sewer liens, special assessment liens and other uncollected penalties will be auctioned off in Indianapolis beginning on Thursday, March 18, 2010. The public auction will be held in the Public Assembly Room (room 230) on the second floor of the City-County building in downtown Indianapolis.
Properties in Marion County with delinquent tax bills, liens and unpaid special assessments will be auctioned in Indianapolis beginning March 18, 2010.
This year’s inventory sets a record for the Marion County Treasurer’s office at over 10,500 properties. The real estate on the list accounts for more than $61 million in uncollected taxes and fees.
The sale starts at 9:00 am on March 18th and runs for several days until the inventory is exhausted. In the event that the sale is not concluded on the first day, properties will continue to be auctioned on March 19th, March 25th and March 26th of 2010. Parcels not sold on these dates during the tax auction will not be offered again for sale this year.
The tax sale buyer’s interest is limited to a lien on the property for the first year after the tax sale (or 120 in the cases of properties on the C list). The current owner of the property has that amount of time to settle debts, penalties and interest on the property in order to “redeem” the property before legal ownership is given to the high bidder. If not redeemed within the statutory period, the tax sale buyer may pay all accrued taxes, liens and assessments current and then exchange his Tax Certificate for a Tax Deed.
In the event the property is “paid up” and redeemed by the current owner, tax sale buyers can be reimbursed. They are given back the amount that they paid at the auction for the delinquent taxes, penalties and/or special assessments plus interest at a 10% annual rate. It is important to note that it is the tax sale buyer’s responsibility to record any such payment in the office of the Marion County Auditor if the buyer expects to be reimbursed when the property is redeemed.
If you are going to bid on property at the tax sale auction, remember:
- to research liens with the Marion County Recorder
- to review plat maps in the County Assessor’s office
- all sales are final and no refunds or exchanges will be made.
For a complete list of bidding and redemption procedures, see the Treasurer’s website.
In Pictures: The Severity Of The Foreclosure Crisis Depends On Where You Live
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Foreclosures stories dominate the national housing news. It seems at least one foreclosure-related story makes its way to the front page or the nightly news in Indianapolis every week.
But for as much as the foreclosure filing statistics can be astounding — over 300,000 homes were served last month alone — the prevalence of foreclosures depends on where you live.
As reported by RealtyTrac, just 4 states accounted for more than half of the country’s foreclosure-related activity last month.
- California : 22.7 percent of all activity
- Florida : 14.9 percent of all activity
- Arizona : 6.7 percent of all activity
- Illinois : 5.7 percent of all activity
The other 46 states (and Washington D.C.) claimed the remaining 49.9%.
However, just because foreclosures are concentrated geographically, that doesn’t make them less important to homebuyers in Fishers and around the country. There’s been more than 1.4 million foreclosure filings in the last 12 months and that’s a figure that can’t be ignored.
Distressed properties now play a role in one-third of all home resales.
Therefore, if you’re in the market for a foreclosed home, here’s a few things to keep in mind.
- Properties are usually sold “as-is” and may not be up to living standards. Be sure to physically inspect the home before buying it.
- Buying a home from a bank is rarely as streamlined as buying from an individual homeowner. Be prepared for delays and long closings.
- Foreclosures aren’t always listed for sale publicly. Ask your real estate agent how to access the complete foreclosure inventory.
In order to use the federal homebuyer tax credit, you must be under contract for a home by April 30, 2010 and closed by June 30, 2010. That doesn’t leave much time to find a bank-owned home and make it to closing. If you’re serious about buying foreclosures, it’s probably best to start your search soon.
Indianapolis Foreclosure List: Updated Daily
Posted by: | CommentsBelow is the current inventory of all Realtor-listed bank foreclosures, HUD homes, VA foreclosures and REO properties in the metro Indianapolis area. The list is automatically refreshed every 24 hours with the most current listings at the top of the list.
The newest listings will not have photos uploaded yet. Check back for updated photos.
For information or to schedule a showing on any of these foreclosures, contact The Dream Home Company at 317-802-1299.
Showing properties
1 – 5 of 500+.
See more
Foreclosures.
(all data current as of
7/30/2010)
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$81,000 : 1019 Paul Dr, Indianapolis3 beds, 2 full bathsSize: 1,427 sq ftListed with American Wholesale Properties,
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$89,000 : 7172 Harbour Isle, Indianapolis2 beds, 1 full, 1 part bathsSize: 978 sq ftListed with American Wholesale Properties,
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$65,000 : 2130 Summer Breeze, Greenwood4 beds, 2 full, 1 part bathsSize: 1,325 sq ftListed with Atlantis Realty Group, INC
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$99,000 : 12627 Teacup Wa, Indianapolis3 beds, 2 full bathsSize: 1,811 sq ftListed with American Wholesale Properties,
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$65,000 : 1501 Woodpointe Dr, Indianapolis3 beds, 2 full bathsSize: 1,132 sq ftListed with American Wholesale Properties,
Listing information deemed reliable but not guaranteed. Read full disclaimer.
Real Estate Market Statistics for Indianapolis
Posted by: | Comments- According to the real estate website Zillow, the peak of the real estate market in the United States was March 2006.
- Zillow also reports that (as of December 2009), $5.9 trillion in value has evaporated from American homes.
- Homeownership peaked at 69% in 2006 and has fallen now almost 2 percentage points to 67.3%, a level not seen since 2000. In 2008, the Indianapolis homeownership rate was estimated at 75% by the U.S. Census bureau.
- Approximately 9% of all Marion County homes are vacant. Most are concentrated in Center Township. – IndyStar.com article Nov. 8, 2009
- Average household size for Indianapolis is 2.57 persons. -U.S. Census
- The $100,000 to $149,999 pricepoint represents the largest segment of owner-occupied homes in the metro area at 30.7% of the total.
- Homes over $1,000,000 in Indianapolis represent only 0.6% of the total owner-occupied housing inventory.
- According to the Bureau of Labor statistics, the unemployment rate for the Indianapolis area was 8.5% in December of 2009. The nationwide unemployment rate for the same period was 9.7%.
- 35% of Realtor transactions (3,979 properties) in Marion County in 2009 were sales of foreclosed homes.
Simple Real Estate Definitions: Shadow Inventory
Posted by: | Comments“Shadow inventory” is created when the seller of a set of items wants to control the entry of those items on to the marketplace in order to maximize the price. The seller sacrifices time (i.e. stretching sales out into the future) in order to receive a higher amount upfront. The bulk of the items being sold are held back for future sale.
Sometimes the technique is used to create urgency, as in the release of residential lots through multiple phases in a builder’s subdivison.
In the current real estate environment, it is being used to hold the line on property values. Banks that have taken back properties through foreclosure have an excessive amount of vacant homes on their books. Advertising these for sale all at once would dramatically increase supply and drive the prices down; leading to further foreclosure activity due to depressed prices. Even non-foreclosure sales would be negatively effected.
Banks and their REO departments (stands for Real Estate Owned which is bank-speak for “foreclosure inventory”) realize that driving prices down is not a good thing when you are trying to sell your assets to recoup your losses.
I have heard the term shadow inventory used recently in two contexts: bank foreclosure inventory and sellers who are waiting to put their homes on the market until conditions are more favorable.
In the Indianapolis, Marion County market in 2009, just over one-third of a Realtor transactions were sales of foreclosed homes. That number is likely to remain high as banks slowly divest themselves of the shadow inventory.
Simple Real Estate Definitions : Short Sale
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A “Short Sale” is when a home seller sells his home for a lesser amount than what is owed on his mortgage, and the mortgage lender agrees to accept the lesser amount in lieu of a full payoff.
By way of example, a Short Sale may be appropriate for a Carmel home seller whose mortgage balance is $250,000 but whose home wouldn’t sell for more than $220,000. Rather than pay the $30,000 difference to the lender at the time of sale, the seller enters into an agreement with the lender by which all sale proceeds are paid to the bank and the deficient balance is forgiven.
Short Sales are a preferable alternative to foreclosure but the process still harms both parties. For one, the seller is penalized with a derogatory tradeline on credit for not fulfilling a mortgage obligation. And, two, the lender is forced to take a loss on a mortgage loan. Versus an executed foreclosure, however, Short Sale damages are relatively limited on both sides.
For this reason, Short Sales are sometimes considered “the economical alternative” to default.
The process of getting a Short Sale approved varies from lender-to-lender and can be time-intensive. Home sellers should not go at it alone — speaking with a real estate agent about the proper protocol is usually the best place to start. And sellers should be aware of how a Short Sale on their credit can impact future borrowing.
Current Fannie Mae guidelines prevent short-selling homeowners from obtaining new mortgage financing for a period of 2 years.
The Property Tax Appeal Specialist in Indianapolis
Posted by: | CommentsVery few people know how to operate within the city-county offices efficiently to address residential property tax appeals for homeowners. In Indianapolis and the metro counties, the seasoned expert is John L. Johantges.
Mr. Johantges is a former deputy tax assessor for Washington and Pike Townships in Indianapolis. He has also worked within the Boone County goverment offices. For the past 11 years, Johantges has operated on the outside of the county offices and developed a niche in the private sector as a property tax appeal specialist with his own company, Property Tax Group 1, Inc., based in Carmel. He spoke recently at the Hamilton County MIBOR monthly meeting in January.
For the cases that he accepts, Johantges estimates his success rate for property tax appeals at 96%.
Indiana switched to a new model of property tax assessment in 2002 after a 1998 decision by the Indiana Supreme Court to make the system more equitable and reflect current market value. Johantges reminded the MIBOR audience that while Indiana is now a market value state, we are not an exact market value state.
The appeals system in Marion County is backlogged. Johantges said that he is still actively involved with tax appeals from the 2006 tax year. “In fact, there are 2004 and 2005 appeals that have not be adjudicated yet,” he said.
There are 2 types of property tax appeals: factual and subjective. Factual appeals are based on incorrectly measured square footage and other quantifiable factors. They can be corrected with a retroactive reimbursement to the homeowner. Subjective appeals, like value considerations, only work forward and cannot be retroactively reimbursed.
Thirty-five percent (35%) of Realtor transactions in the Marion County market in 2009 were foreclosures (3,979 transactions). This has brought investors to Johantges’ door step. Many times, investors who have purchased foreclosed homes at significant discounts expect that the county assessor will immediately adjust down the gross assessed value to meet the purchase price evidenced by only a few executed closing documents. Not so.
First, since taxes are paid one year in arrears (levied for the current year but not due until the next year), an assessor may mark the parcel for future examination but changes to effect the current tax bill will not be made. Additionally, an adjustment may only be considered if the majority of properties in the neighborhood have experienced declining values. A sole foreclosure in an otherwise solid neighborhood will not qualify for a reduction in gross assessed value down to the purchase price.
Hamilton, Boone and Hancock county assessor offices earn kudos from Johantges for being generally on target with their valuations.
The burden of proof for property tax appeals is always on the property owner, not the county offices. If you believe that your assessed value is off of the mark, file an appeal or hire a specialist like Johantges to help you navigate the appeals process.
Johantges works with commercial property tax appeals as well. He can be reached at 317-733-4228 or www.ptg1-indy.com.
New Short Sale Procedure for Bank of America Customers
Posted by: | CommentsUpdated short sale procedures were announced recently for mortgage customers of Bank of America who are wishing to sell their homes in a short position. Bank of America has revised the procedure through which homeowners and their real estate agents can submit offers.
A short sale is an agreement between the lienholder (lender) and the homeowner to forgive a portion of the original debt. When the homeowner finds a new purchaser (either himself or through a real estate agent) whose offer produces a negative net, the lienholder agrees to take less than what is owed on the home. The advantage for the lender is that they will often receive more of their funds back than if the home was lost to foreclosure (expenses from vacancy, repairs, liability, carrying costs and court/legal fees). For the homeowner, a short sale may carry a lesser stigma and a lighter credit bruising than a formal foreclosure.
For Bank of America customers, all new offers to purchase through a short sale channel must be entered through www.equator.com (formally REOTrans). This does not apply to sales involving Bank of America liens where the loan is paid off in full at settlement. In addition, in order to be considered as a candidate for a short sale, the current homeowner must demonstrate financial hardship that may include a pattern of missed or partial payments.
The homeowner/seller will need to initiate the process with their mortgage account number and the email address of their real estate agent. Once initial registration is complete, the real estate agent is sent an email with further instructions on how to upload the offer.
The customer service division at Bank of America is 1-866-880-1232. More information is available at shortsale.bankofamerica.com.
