Foreclosures, Turning the Corner

Data released this week by California-based Realty Trac indicate that foreclosure activities are improving. Nationally, foreclosure rates were down 26% December 2010 vs. December 2009, and down 2% from November to December. Florida is one of the highest states nationally in foreclosure activity and Florida’s rate was down 53% December ‘10 vs. December ‘09, and down 6% from November 2010 vs. December 2010. Much of this decline may well be attributed to the moratorium on foreclosures due to questionable bank foreclosure practices. It is anticipated that any delayed actions will ultimately be pushed into 2011, and in the process, mask the real 2011 activity statistics. It’s interesting to note that while foreclosure filings look to be declining, the number of bank-owned (REOs) properties is up sharply.

The benefit of the drop in the number of foreclosure filings is an indicator that we may finally have turned the corner, but it may still be some time before we see significant improvement as downward pricing pressure will continue to occur as banks liquidate the massive numbers of foreclosed properties on their books. This liquidation, along with the extremely low interest rates – down to 4.71% last week – and an abundance of properties from which to choose continue to make this one of the best time ever to buy.

In your territory, look for the counties with the highest rates of foreclosures to find the greatest opportunities for your buyers and investors. In Florida these are Osceola, Volusia, and Palm Beach.