Q1 2008 Mortgage Statistics for Florida and Tampa Bay

The results are in for the first quarter and it is not a pretty picture on the foreclosure front here in Florida or for that matter the Tampa Real Estate Market.

Two reports this week that are interesting depending on how you can decipher the content ? The first report is by Trans Union. They put together a trended analysis report that reviews 2007 fourth quarter data to compile their latest statistics and then forecast for 2008. They are reporting that Florida delinquent mortgages have increased by 34 %.

The top three areas showing the largest growth in delinquency from previous quarters are Florida at (34 percent), California (33 percent) and Arizona (32 percent).

“The market continues to see the effect of the mortgage crisis in the steeply increasing mortgage delinquency rates among borrowers across the country,” said Keith Carson, a senior consultant in Trans Union’s financial services group.

The national 60-day mortgage borrower delinquency rate is expected to continue to rise throughout 2008 from a value of nearly 3.0 percent in the 4th quarter of 2007 to 4.0 percent or greater by year end.

On another note: Realty Trac released their quarterly report on the U.S. Foreclosure Market which states that “Foreclosure activity has increased by 23 % in the first quarter of 2008.” They are reporting that Nevada, California, Arizona posted the top state foreclosure rates.

“Foreclosure filings were reported on 87,893 Florida properties during the first quarter, the second highest state total and giving Florida the nation’s fourth highest foreclosure rate — one in every 97 households received a foreclosure filing during the quarter. Foreclosure activity in the state was up 17 percent from the previous quarter and up 178 percent from the first quarter of 2007.”

“The highest ranked Florida metro area was Fort Lauderdale, which ranked No. 8 with one in every 73 households receiving a foreclosure filing during the quarter. Other Florida metro areas in the top 20 included Orlando at No. 13, Miami at No. 14 and Sarasota-Bradenton-Venice at No. 15. The foreclosure rate in Tampa-St. Petersburg-Clearwater ranked No. 21.”

So this actually shows that the Tampa and St. Petersburg Real Estate areas are faring a bit better on the over all State level.

While the numbers on a whole do not look too promising, this is still a positive note for the Tampa Bay Area Housing Markets, and once again affirms the prediction by our States Economist that Tampa Real Estate markets will recover first starting with Pasco County.

If you want to find out specific information on Foreclosure statistics in your area and or find out which homes are in foreclosure or are on the auction list, you can go to RealtyTracs home page, click on the interactive map. For example click on the US Map, in the Florida area, this will then pull up a State Map where you can enter in a specific county. For example Pasco County and then click on search.

You will then be presented with the break down of total number of homes in pre-foreclosure, auction, bank owned etc. You can gain some pretty good information for free however, to see specifics on taxes etc you have to have a paid membership. The site looks complex but is fairly easy to navigate. Check back tomorrow and I will post a quick video over-view to walk you through the process.

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Denial will stop you from selling your home

 

A new report from Zillow.com shows home values dropped nationwide by 3%. Chief Financial Officer Spencer Rascoff discusses which cities saw the largest declines.
Time for little cold water on the face for those that have obviously been asleep for oh..the last year. Hey times are tough, I don?t need to rehash all the media hype of the last several months however, todays news has continued with fact that Mortgage Applications volumes decreased this last week in large part because the interest rates started creeping back up again. The Wall Street Journal reported on Zillows market data from Monday, that outlines the Bubble Areas of California and Florida. Basically, they reported that prices are still falling and may continue to fall more.

So where does this leave the home owner that really wants to sell their home ? Well first off you have to be really motivated to sell. Yes it is difficult the house you are selling was to bank role your retirement plan and so you have a certain number that you feel you have to sell at. Sound familiar ? If this is you then you had better get your head out of the sand. Either take your home of the market and forgo that retirement plan for a year or two or reduce your house to what your realtor says it should sell at. And even then you need to be prepared to lower the price even more again.

That is if you want to really sell your home ? Now maybe you don?t have retirement in mind, but you wanted to profit from your sale. Who doesn?t ? However, if you have had your home for some time, you have a lot of room to work with. It is unfortunate that homes are over valued. And yes that means the very one you are trying to sell now.

You can read more of this article by the WSJ concerning your R.O.I. here:

As I am writing this, I am also reminded of an article I read in January?s issue of Realtor Magazine discussing this issue of Realtors trying to get Sellers to Get Real. They did cover both ends of the spectrum and covered unrealistic buyers expectations too. The larger issue that we face here in Florida is the fact that our homes are over valued. It is not personal, believe me, we bought into a new home at near the top of the market. If we had to sell today we would loose a lot, but that?s just what the market bares right now and being realistic is the only way to keep moving forward.

If you are a Realtor and have ?clients who won?t budge from unreasonable thinking,? then you may have to try an alternative approach to the one you are currently using. One of those items that I find no one has mentioned is the use of BLOGS. Yep, give them the web site address here or email them the link to this article. They can get mad as hell at me, but I have included the links to the statistics within this article.

I can?t say it any better than this ?When you have clients or prospects that are being unreasonable, it?s your job to help them revise their expectations based on the market reality.? I have to give credit where it?s due. This quote is from Kelle Sparta?s article that I mentioned above. (Kelly is the author of The Consultative Real Estate Agent).

In closing, it appears that the signs of denial for Sellers are still all over the map here in Florida and California. . Inman news covers it fairly well in their article entitled Denial: Didn?t we do this stage already ?

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How to stop foreclosure – 101

How to stop foreclosure – 101

According to a New Report published yesterday by Realty Trac US Foreclosure activity increased 75% in 2007 over 2006 figures.

Nevada hit # 1 with Florida #2 followed by Michigan to round out the top 3.

The states with the highest household foreclosure rate were

1. Nevada (3.38 percent)
2. Florida (2 percent)
3. Michigan (1.95 percent)
4. California (1.92 percent)
5. Colorado (1.92 percent)
6. Ohio (1.8 percent)
7. Georgia (1.57 percent)
8. Arizona (1.52 percent)
9. Illinois (1.25 percent)
10.Indiana (1.03 percent)The U.S. average was 1.03 percent.

Following fresh on the report release was an interesting piece from the Today Show Wednesday, entitled Foreclosure 101 -

This interview is with Barbara Corcoran a so called business baroness. She is listed as one of the most powerful brokers in the U.S. Barbara is legendary for being the most well-known name in New York real estate and for having personally sold only three apartments. She is a Real Estate contributor on the payroll of MSNBC, who produces the Today Show.

In this news segment they break down exactly how a foreclosure process works.

Some of the not so pretty points:

• Foreclosures up 75% in the last year
• 1 out of every 100 homes are in Foreclosures
• 40% of Las Vegas Homes are in Foreclosure
• Most People don?t return calls to the bank
• Foreclosure starts after missing 3 payments
• Filing Bankruptcy doubles the time you can stay in your house
• Takes 3?18 Months before you lose your home
• Bankruptcy stall foreclosure
• It takes 6 years to restore your credit after foreclosure
• Bank Loses Average of $59,000 for each foreclosure

How to Stop a Foreclosure:

• Short Sale
• Apply for FHA Loan
• Ask for a reduced Payment
• Return the Deed

The take away from this according to Barbara, ?People don?t realize they have more muscle than they think when they are in financial trouble?.

I invite you to comment on this after viewing the video.

What are your thoughts ?

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Are Florida Realtors up for the challenging time ahead ?

Given all the bad press lately on the National scene as well as local numbers for the Florida Housing markets still showing declining numbers, it is little wonder that many Realtor’s in the Tampa Bay area have decided to move on to other ventures , some have had to take paying jobs in other industries and many have forgone renewing their licenses.

If sales projections weren’t bad enough for our local markets, last week we got the double whammy of two major reports indicating home prices plummeting and then the report from Realty Trac on the increase in Foreclosures going up.

Well the video clip below is worth watching. In some ways it epitomizes how many of us in the industry feel. This crazy man with a death wish has many of us thinking that we may be in the same category. But then again if you look at this from an optimistic point of view – things get really interesting.

Watch this then read my continuing comments below.

Ok, so what were your thoughts ?

This guy is one crazy dude with a death wish ?

The comparison to those that work in the Real Estate industry during these trying times is very interesting. This guys is for sure an adrenaline junkie, but one who goes to extreme lengths to ensure that his down hill need for speed is tempered with some fairly advanced preparations.

As a Realtor you need to focus on what you need to achieve success, despite the horrendous obstacles. You need to plan your days in advance, and account for your every next move. If you don’t you could risk major injury to your self esteem or your financial livelihood. Which means you crash and burn…. but maybe live another day.

If this skier makes one wrong move or hits one mogul he did not account for, he may end up seriously injured or even worse….dead.

So given the extremes it’s really not that bad now is it ?

If you thought this was another ho hum Monday in a really bad market, I hope this gives you some courage to buck the trend.

Tell yourself “your OK” and get out there and make it happen this week.

How to avoid foreclosure

With the recent Q3 reports showing that foreclosure rates have steadily increased over the last year, I thought it might be a good time to review ways to avoid foreclosure in the first place. This is by no means the definitive list but this goes a little bit more into detail than my early post last month, which by the way you can read by clicking on the link below for related posts.

How to avoid foreclosure in eight steps:

1. Pay the full amount that is in arrears if possible.

The lender may require certified funds to reinstate the loan. Keep current on your mortgage payments, which credit counselors say should take priority over credit card debts and other debts.

2. Contact the lender as soon as possible.

If you are experiencing financial problems. The lender is more apt to work with you the sooner it is contracted. Explain to the lender why you are late. studies show that homeowners who are one or two payments behind are more likely to keep their homes than those who are one or two payments behind. Ask the lender for a temporary or permanent change in the mortgage terms, often called a “workout”.

3. “Workout” options include re-amortization.

Or repaying part of the delinquency each month along with your regular monthly payments: a temporary or permanent interest rate reduction; deferring missed payments to the end of the loan; extending the loan period; and reducing the principle balance.

4. Contact state and local government agencies.

As well as private charitable groups that have programs to assist with all or part of your mortgage payments for a fixed amount of time. You may also contact an attorney through a neighborhood legal services office or bar association offering pro-bono services. Some loans guaranteed by federal or state agencies may be required to provide certain assistance and options to homeowners to avoid foreclosure.

5. Refinance the home debt.

If you have equity built up. However, beware of refinancing schemes that may be more costly than your existing mortgage.

6. Consider selling the home before foreclosure.

Which is a better option than having a bank sell if for you. Get an appraisal to determine the homes value and marketability. Call your local or State Department of financial services. Florida residents can call a consumer helpline toll free 1-800-342-2762 before you pay anyone who offers to help you get out of foreclosure. If more is owed on the home than-it’s value, the mortgage company may agree to sell the home at a price that is less than the amount owed. If the lender doesn’t agree, the property can still be sold prior to foreclosure but the borrower would woe the remaining amount of the loan to the lender.

7. Consider filing for bankruptcy.

This can stop the foreclosure and give you time to work out a plan to keep your home. Seek legal assistance from a qualified bankruptcy attorney. You will need to have sufficient income to work out a plan to repay your debts.

8. Consider handling over the deed to the lender.

In lieu of foreclosure. This is a good idea id the lender agrees not to make further collection efforts against the borrower but the borrower may also forfeit any tights to equity in the home.

According to Realty Trac’s CEO, James J. Saccacio:

“Although not all areas are being hit as hard as others, the rise in foreclosures is quite widespread, with 45 out of the 50 states documenting year-over-year increases in the third quarter,” he said. “Given the number of loans due to reset through the middle of 2008 and the continuing weakness in home sales, we would expect foreclosure activity to remain high and even increase over the next year in many markets.”

Nevada led the nation in the third quarter with 16,817 foreclosure filings on 12,982 properties, representing one foreclosure filing for every 61 households. California was the leader overall with more than 148,000 foreclosure filings on 94,772 properties, but was ranked second since its numbers represent one foreclosure filing for every 88 households.

Other states in the top 10 included Michigan, Ohio, Colorado, Arizona, Georgia, Indiana and Texas. Vermont had the best foreclosure record with just 25 filings, representing one filing for every 12,294 households. South Dakota was second best, with one filing for every 4,639 homes while North Dakota listed one filing for every 4,288 households.

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