Foreclosures declining?

admin — Mon, 11 May 2009 19:38:41 +0000

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The news in the past week has been a mixed bag. I’ve read that foreclosures are declining. For the first quarter of this year, Virginia’s foreclosure rate on subprime loans was 9.4% compared to the national average of 13.7%. Will this trend continue or is it the calm before the next wave of defaults?

I am seeing a decrease in the amount of orders for Broker Price Opinions (BPO’s). I’m not quite sure how to interpret that. Does it mean we have less refinancing going on or does it mean the foreclosures are slowing.

I’m seeing many of the pundits of the financial world declaring we’ve seen the bottom of this economic downturn. Warren Buffett and George Soros have both come out with statements that the economy will be improving. I was at a presentation about 6 weeks ago given by tThe CEO of EXIT Realty, Steve Morris. His prediction was that we had seen the bottom and the news would start coming out, looks like he was right. He also predicted that the fourth quarter of this year will see in a strong real estate market.

I hope they are right!

“When did entering a REO listing in the MLS become ‘marketing’?”
Licensed in the Commonwealth of Virginia
©2009 Troy Deierling

Post from: REO / BPO Real Estate Services - SE Virginia

Foreclosures declining?

Government incompetence in lending guidelines fuel foreclosure crisis

admin — Fri, 01 May 2009 23:52:47 +0000

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No end in sight for housing foreclosure crisis

Link above goes to an interesting article on “The Hill”. The Alt-A and Option ARM mortgage defaults are starting to happen

Troy Deierling, REO Network Agent

now. Predictions are that this will be bigger than the sub-prime fiasco we are just now emerging from.

One thing that is apparent, this new wave of REO property will be on higher end homes. It’s not fair but maybe this will get the government to finally do something substantive about the mortgage problem. I can tell you from experience that the bailout money going to the banks is not flowing out again in any meaningful way for buyers.

The Feds have done the usual over reaction as well and tightened down lending guidelines so hard that it is VERY difficult to get buyers qualified. Ask any mortgage officer or Realtor. Deals are falling apart all the time due to overzealous underwriting guidelines.

So, to sum up…. We have banks being given money by the government, the government issuing lender guidelines that make it difficult to lend the money and a housing market that continues to sink with growing foreclosures.

If buyers can’t get mortgages, this mortgage meltdown will not be over anytime soon.

Regards,

“When did entering a REO listing in the MLS become ‘marketing’?”
Licensed in the Commonwealth of Virginia
©2009 Troy Deierling

Post from: REO / BPO Real Estate Services - SE Virginia

Government incompetence in lending guidelines fuel foreclosure crisis

REO / BPO Real Estate Services - SE Virginia » foreclosure crisis

Foreclosures declining?

Government incompetence in lending guidelines fuel foreclosure crisis