Absorption Rate

[SoFLGal]

Originally Posted by mikey2

Last night Channel 6 ran a story on foreclosed and abandoned homes in North Port. They estimated that there are about 1000 homes and keeping the maintenance up on them is a problem.

I guess many of these homes are not on the market yet? Are the banks just holding them at this point?

Maybe SoFlGal and others can shed some light on this issue.

Mikey

Hey Mikey,

I think what we are seeing is the 226 homes listed as short sales and then the 45 homes listed as foreclosures in North Port. It may seem odd but usually the foreclosures are taken care of better than the short sales. The short sale properties are still owned by the original owners and often times they don't have the money to maintain these properties. Or the owners have just moved out of town.

Once they end up as a foreclosure the banks/Realtors are required to maintain the homes, grass, secure the pools if they have any, etc.

The asset managers at the banks that we deal with tell us that right now they haven't been getting many properties.

I didn't see the news story because I don't have Comcast for TV. Maybe I can pull it up on the Herald website. Did they say where they got their stats from? Just curious. Interesting though. Maybe that will mean more foreclosures coming down the pike. In all of our reports to the bank we are now reporting a stable market.

[mikey2]

Too bad you weren't able to see the report, because you'd be better able to comment on the points they made.

The story had a rather dire tone, and they definitely said there were "upwards of a 1000 homes" abandoned or in foreclosure. They interview town officials who stated that they were using $300,000 from a general fund to try to keep up with lawn maintenance etc.

They also interviewed neighbors who were upset that the homes on their street were not being taken care of.

There was no mention of where they got their statistics from.

Mikey

[SoFLGal]

Originally Posted by mikey2

Too bad you weren't able to see the report, because you'd be better able to comment on the points they made.

The story had a rather dire tone, and they definitely said there were "upwards of a 1000 homes" abandoned or in foreclosure. They interview town officials who stated that they were using $300,000 from a general fund to try to keep up with lawn maintenance etc.

They also interviewed neighbors who were upset that the homes on their street were not being taken care of.

There was no mention of where they got their statistics from.

Mikey

I think I might have found it: | HeraldTribune.com | Sarasota Florida | Southwest Florida's Information Leader

Is that it? Interesting. I'm assuming since the numbers are coming from the city that they know what they are talking about. Right now looking at the numbers it seems as though the homes sales are stable meaning that the amount of homes coming on the market is about even with the amount of homes selling. It seems as though if we get a property listed it is sold within a week or so. We deal with many of the bank owned properties which are usually put on the market at deep discounts.

Most of the banks are saying they are a bit slow right now with foreclosures so maybe we'll see another wave of foreclosures coming. Like I said before, the homes that you are seeing on the video are not foreclosed homes. They are short sales. We are required to take pictures every week to show that the property is being maintained. The banks wouldn't put up with the homes looking like that.

All I can report is what I see in the MLS for data and what I'm seeing being out and about talking with other Realtors, banks, and the general public.

I think I'll give the city manager in the video a ring tomorrow and get his take on the situation. Thanks for sharing though, Mikey

[mikey2]

Yep, that's the report. I wonder if banks are trying to bring homes to market at a pace close to that which they're being sold, rather than just flood it all at once.....or.....

Maybe there is other factors I just don't understand.

Thanks for commenting.

Mikey

[SoFLGal]

Originally Posted by mikey2

Yep, that's the report. I wonder if banks are trying to bring homes to market at a pace close to that which they're being sold, rather than just flood it all at once.....or.....

Maybe there is other factors I just don't understand.

Thanks for commenting.

Mikey

That's what I'm guessing is going on. Maybe they're trying to keep things going along like they are. If they released a ton of them it woould flood the market again.

[HenryHelmhazzard]

SoFLGal and mikey2, thanks for sharing that video.

I found this article today, national, but still relevant:

A Coming Flood of Bank Owned Homes

A Coming Flood of Bank Owned Homes | The Big Picture

I was hoping to share the whole Wall Street Journal piece cited in the blog entry above but it's no longer available to the general public (subscription only): Delayed Foreclosures Stalk Market - WSJ.com
Strange days. Great if you're a buyer though.

Our next-door neighbor warned early last year that he had stopped making payments on his home, and he still hasn't been foreclosed on. He moved out this spring, but we're fortunate that he comes back from time to time, mows the lawn and tries to keep the place maintained.

Not sure what drives the timeline from Lis Pendens to actual foreclosure, but it took a year of delinquency before the bank filed against him. The L.P. notice showed up in February, so the process has now hit about the 18 month mark and still no final judgment.

Like you both said, the banks will probably drip drip drip the inventory back into the system as slowly as possible unless something forces their hand.

[SoFLGal]

Originally Posted by HenryHelmhazzard

SoFLGal and mikey2, thanks for sharing that video.

I found this article today, national, but still relevant:

A Coming Flood of Bank Owned Homes

A Coming Flood of Bank Owned Homes | The Big Picture

I was hoping to share the whole Wall Street Journal piece cited in the blog entry above but it's no longer available to the general public (subscription only): Delayed Foreclosures Stalk Market - WSJ.com
Strange days. Great if you're a buyer though.

Our next-door neighbor warned early last year that he had stopped making payments on his home, and he still hasn't been foreclosed on. He moved out this spring, but we're fortunate that he comes back from time to time, mows the lawn and tries to keep the place maintained.

Not sure what drives the timeline from Lis Pendens to actual foreclosure, but it took a year of delinquency before the bank filed against him. The L.P. notice showed up in February, so the process has now hit about the 18 month mark and still no final judgment.

Like you both said, the banks will probably drip drip drip the inventory back into the system as slowly as possible unless something forces their hand.

Good article! I think part of the problem was that the courts are just getting to backlogged with all of the filing. I heard that some judges came out of retirement to handle the mess.

Sarasota county now has the Rocket Docket, which is supposed to help speed things along: It's fast, furious at Sarasota's 'Rocket Docket' court

[po14015]

Foreclosure Auctions for Manatee County, FL for October: 161

Jan.....Feb......March.....April......May.....June .....July.....August.....Sept

92......138........103.........97.......139......1 37......216......187.........251

October:
161

November already has over 200 auctions.

This is where bank inventory comes from. Up to this point people could get there unit back. This is where you look to see what will be on the market in the next 30-90 days.

[po14015]

Foreclosure Epidemic Reaching More Expensive Homes



"But today, as the unemployment rate heads for 10 percent, a growing number of borrowers with good credit are heading into foreclosure after losing their jobs."


Foreclosure Epidemic Reaching More Expensive Homes - Yahoo! Finance