Is November 2016 Really a Month of Surprises?

by Tim Herriage

Is November 2016 Really a Month of Surprises?

by Tim Herriage

by Tim Herriage

First the result of the presidential election has been greeted with shock by parts of society that was told this was impossible. Anyone living outside “the insider bubble” could see this election was going to be more about rebalancing American domestic priorities and not taking a back seat to globalist goals than politics and personalities.  All traditional bets were off.
foreclosure-stepsSecond, the ATTOM Data Solutions October 2016 Foreclosure Market Report (reported in November) saw a surprising 30% jump in month-over-month foreclosure RELATED activity. The report totals 105,481 foreclosure filings, default notices, scheduled auctions or bank repossessions.
MAYBE NOT
It is important to understand the different steps a homeowner/house takes in the process to becoming a foreclosure. Not all homeowners going delinquent progress to the point of receiving a “notice of intent to foreclose.” Some fix the issue by bringing payments current after receiving a delinquency notice. Similarly not all notices of intent to file become foreclosures as many homeowners also remedy this or arrange a short sale of their property and thereby avoid foreclosure proceedings. The transaction composition of this 105,481 is relevant to forecasting real foreclosures.
NATURAL FORECLOSURE INVENTORY
As long as property records have been kept and traditional underwriting and mortgage practices followed, about one percent of total housing inventory has flirted with foreclosure actions in the course of a year. Far fewer are repossessed and sold “on the courthouse steps” or in other lender disposition processes. The housing bubble changed these ratios. It is generally accepted that lax underwriting and lending standards leading up to 2007 allowed many financially fragile borrowers to get into long term loan commitments they were unable to keep. Delinquencies and foreclosures spiked as these loans went bad. That era is mostly behind us as we have reverted to tighter lending standards although a number of low down payment FHA and VA loans are becoming problems. Expect foreclosure rates to revert to the norm of about 1% of total inventory per year so offering a buying opportunity for investors.  Investable Realty is working with Auction.com to teach serious investors how to buy at auction. Or sign up for our newsletter to find out about future dates. For more……..

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