CullmanTimes.com - Cullman, Alabama

Business

March 14, 2013

Sharp drop in US homes lost to foreclosure in Feb.

LOS ANGELES — While the nation's foreclosure woes persist, new data show they're easing amid a resurgent housing market, rising home prices and efforts by some states to buy homeowners more time to avoid losing their homes.

The number of U.S. homes repossessed by lenders last month fell 11 percent from January and declined 29 percent from February last year, tumbling to the lowest level since September 2007, foreclosure listing firm RealtyTrac Inc. said Thursday.

Some states continued to see sharp increases in homes lost to foreclosure last month, including Washington, Wisconsin and Iowa. But home repossessions declined both on an annual and monthly basis in a majority of states, including past foreclosure hotbeds such as California, Georgia and Arizona.

All told, 45,038 U.S. homes completed the foreclosure process in February. That's less than half of the 102,000 homes lost to foreclosure in March 2010, when home repossessions peaked, according to the firm's records, which go back to January 2005.

Foreclosures remain at more than double the pace that RealtyTrac considers normal, roughly 20,000 foreclosures a month, the average in 2005. But their national impact has been contained, said Daren Blomquist, a vice president at RealtyTrac.

"It's definitely safe to say we're past the worst of it at a national level," he said.

Several factors are contributing to the overall decline in completed foreclosures. More jobs and ultra-low mortgage rates are helping the once-battered housing market recover, and the rising demand combined with fewer available homes has helped push home prices steadily upward since last year. They posted their biggest annual increase in six years in January.

Higher home values help restore equity to homeowners, which can help those at risk of foreclosure by improving their chances of refinancing their mortgage to a lower payment or place them in a better position to sell their home.

In the first nine months of 2012, 1.4 million homeowners who had been underwater on their mortgage, or owed more than their home is worth, were moved into positive equity, according to data from CoreLogic.

The tight supply of available homes for sale has created a sellers' market, with many properties drawing multiple offers. That means even bank-owned homes and those in some stage of foreclosure, which typically sell at a discount to other homes, are going for higher prices.

That has given banks further incentive to let homeowners who have fallen behind on their payments avoid foreclosure by authorizing a short sale, when a lender agrees to accept less for a home than what the seller owes on their mortgage.

Last year, sales of homes in some stage of foreclosure rose 6 percent from a year earlier, while sales of bank-owned homes fell 15 percent, according to RealtyTrac.

Meanwhile, states like California, Nevada and Washington have passed laws to increase homeowners' protections from foreclosure. Those laws have effectively delayed the pace of homes entering the foreclosure process, which has helped to thin the pipeline of completed foreclosures in those states.

The combination of fewer foreclosed homes hitting the market and higher prices for those that do sell is good news for homeowners because those properties will be less of a drag on the value of nearby homes.

"They'll have less of a negative impact just because there are fewer selling," Blomquist said.

As of the end of February, 1.5 million U.S. homes were in some stage of foreclosure or in banks' possession, according to RealtyTrac.

Given the monthly pace of home repossessions through February, Blomquist projects there will be 600,000 completed foreclosures this year, down from 671,000 last year.

He also expects the number of homes taken back by lenders to increase later this year, noting that 1.2 million homes entered the foreclosure process in 2012. Typically, about half of those end up as bank-owned homes, he said.

While lenders took back fewer homes last month, the number of properties that entered the foreclosure process in February increased 10 percent from the previous month, RealtyTrac said.

The monthly gain was the first after three monthly declines. So-called foreclosure starts were down 25 percent from February 2012, with Nevada, New York, Washington and 13 other states posting annual increases.

Overall, Florida posted the nation's highest foreclosure rate, which RealtyTrac measures by tracking the number of properties with foreclosure-related filings. One in every 282 households in the state received at least one filing, or more than three times the national average.

 

1
Text Only
Business
  • Long-term unemployed are still strong hires, study shows

    People who have been out of work for an extended period, once hired, tend to be just as productive on the job as those with more typical work histories, according to an analysis of almost 20,000 employees.

    April 4, 2014

  • CEMS groundbreaking CEMS holds groundbreaking

    March 31, 2014 1 Photo

  • Cook Social Worker of Year.jpg Cook chosen as Public Social Worker of the Year

    Angel Cook of the Cullman County Health Department was selected as Public Health Social Worker of the Year for 2014. She was recognized March 7 at the Public Health Social Work Seminar held in Montgomery.
     

    March 15, 2014 1 Photo

  • news_google.jpg First Apple, now Google hit with kids' app lawsuit

    Last month, 4- and 5-year-old brothers in New York quickly spent $65.95 in real money to buy virtual goods in Marvel's Run Jump Splash game on the family tablet. They were able to rack up the charges without entering a password. And for that, the boys' mother has joined a class-action lawsuit filed Tuesday against Google, accusing the company of deceiving consumers about its in-app purchase system, which critics say makes it too easy for kids to spend money on their Android devices.

    March 14, 2014 1 Photo

  • Alfa honors Ford.jpg Alfa Insurance honors local agent

    Alfa Insurance Agent Whit Ford of West Point received the Distinguished Service Award – Bronze Level for 2013 during the company’s annual awards ceremony in Birmingham.

    March 12, 2014 1 Photo

  • biz_target.jpg Target seeks new technology head after data breach

    Target Corp., still reeling from a security breach that exposed the personal information of tens of millions of customers, is seeking a new top technology executive to help prevent future attacks.

    March 7, 2014 1 Photo

  • 20140306-AMX-STAPLES6.jpg Staples to close 225 stores as online competition hurts sales

    Staples Inc., the largest U.S. office-supplies chain, will close as many as 12 percent of its North American stores and cut as much as $500 million in costs as online competition continues to hurt sales.

    March 6, 2014 1 Photo

  • Five things you should know about the Netflix-Comcast deal

    Now Comcast and Netflix have announced that they will directly interconnect their networks, rather than having Netflix traffic flow first through a third-party network. With this, another layer of Internet architecture - interconnection and peering - is under the microscope.

    February 28, 2014

  • thomspon to relocate.jpg Kristin (Brown) Thompson with Strong LLC relocating to NYC to open new office

    Strong Advertising Agency, announced that Kristin, a 2007 Cullman High School graduate, has opened a new office in Manhattan and working in the New York/New Jersey area serving as the marketing contact for advertising clients for merchandising and creative content development. She began working at Strong, LLC in Birmingham as an Account Executive Assistant in 2012 and was promoted to Account Executive after 6 months of employment.
     

    February 25, 2014 1 Photo

  • 01.jpg US News names its 'Best Cars for the Money'

    U.S. News & World Report Wednesday announced its annual Best Cars for the Money list on its Best Cars website.

    February 13, 2014 1 Photo