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Foreclosure Rate Watch: October Foreclosures Drop Dramatically

By Mike in Downtown San Diego Real Estate Market Analysis|November 2008 with 0 Comments


Foreclosure Rate WatchForeclosures are a hot topic right now! Are they up? Are they down? How are they compared to last year at this time, last month? There are a lot of questions because some look at the foreclosure rate as a potential indicator into whether were nearing the bottom, skimming right along, or nowhere near it. At 92101 Urban Living we like to keep you, the buyer or seller, up to date with articles we stumble upon in our everyday quest to understand the constant changes in the market.

In this November 10 article posted in MarketWatch, U.S. Foreclosures Index: October Foreclosures Drop Dramatically to Near 2008 Lows, were able to get some current numbers on the state of foreclosures.

According to the U.S. Foreclosure Index from ForeclosureS.com, foreclosures fell for the second month in a row in October to nationwide lows not seen since last February. October pre-foreclosure filings were off more than 10% from Augusts highs, and nearly 7% from September numbers. And these falling October numbers were true for about half the states in the U.S. Foreclosure Index.

Another number thats down are properties repossessed by lenders following foreclosures coming in at 22% off from Septembers high, the lowest monthly total since May.

Its important to note that pre-foreclosure filings do not end up in foreclosure but property information specialists at ForeclosureS.com base its U.S. Foreclosure Index on the number of formal notices filed against a property during the foreclosure process. This can include notice of default, notice of foreclosure auction, and/or notice of REO.

Almost one-third of the 1.76 million pre-foreclosure filings so far this year are in 10 counties out of the more than 1,300 nationwide included in the ForeclosureS.com database. Of these 10, San Diego is not one.

These numbers would lead one to believe that San Diego is not as affected as other counties, however, more than 255,000 completed foreclosures this year to date are in 10 counties, too. Of these, San Diego is included.

The clearest indication of trends comes by looking at nationwide foreclosures based on the number of filings out of every 1,000 households.

– 11.5 out of every 1,000 households nationwide have been repossessed by lenders following foreclosure YTD based on REO filings. Thats up 71.63% from the same time a year ago.

– 24.6 of every 1,000 have had to deal with pre-foreclosure fillings YTD, up 71.53% from 2007 YTD.

Alexis McGee is the author of The ForeclosureS.com Guide to Advanced Investing Techniques You Wont Learn anywhere Else, and The ForeclosureS.com Guide to Making Huge Profits Investing in Pre-foreclosures without Selling Your Soul.

Despite these startling percentage rates, McGee states, Prices are low and current government backed mortgages are making homes more affordable than ever. Plus lenders are finally getting realistic and unloading REOs at cut-rate prices. The deals are happening. Whether youre a would-be homeowner or property investor now is a great time to buy discounted properties from motivated sellers.

So, if youre in the market for a Downtown San Diego Condo or Loft property one might deduce that now is the time to take advantage of discounts rarely offered. The argument can be made that there is some time to act, however, the sooner the ball gets rolling the more informed and ready you will be to make that purchase. ')}