343,638 Foreclosures in September
Foreclosure gauges are beginning to sound a lot like those ominous unemployment statistics. They are exhausting. They are emotional. In an era where 514,000 new applications for unemployment benefits is considered good news, the fact that 343,838 homes entered the foreclosure market in September 2009, is somehow seen as an improvement in the rate of decline.
Believe it or not, it is! But like all numbers reported in this recession, it deserves a closer look. While the September foreclosure activity is less than August, which was less than July, it is still the third highest number of monthly foreclosures on record with RealtyTrac.
“Bank repossessions, or REOs, jumped 21 percent from the second quarter to the third quarter, corresponding to jumps in defaults and scheduled auctions in the previous two quarters,” said James Saccacio of RealtyTrac.
For today’s qualified real estate investors, the game is on. Dispelling the adage that real estate investors cannot make money in a down market, buyers with cash can go a long way as banks get creative when looking to get out for under REOs. Florida investors are buying large blocks of homes from banks and at public auctions.
These investors are banking on their ability to lease properties to “snowbirds” and other displaced homeowners until the market turns. Residential real estate prices are down as much as 50-60 percent in some Florida markets and the weather has not changed, so rental appeal remains strong. While seasonal visitors are pulling back from purchases, they are still looking to rent.
“REO activity increased from the previous quarter in all but two states and the District of Columbia, indicating that lenders may be starting to work through some sort of the pent-up foreclosure inventory caused by legislative delays, loan modifications efforts and high volumes of distressed properties,” added Saccacio.
