“Foreclosures have had a huge impact on home values,” remarked John Evan Miller, a real estate analyst with Foreclosure Deals. “In almost every market, prices are well below their 2008 values, simply because there are so many homes available.”

Foreclosure Deals presents the new data compared with values recorded in 2008 using an infographic available on their web site, and the impact of the foreclosure wave is clear. In many areas, home prices are extremely low, while rent prices are notably higher.

“Rents are up, and they’re going to stay up,” said Miller. “Even though it’s the best market for homebuyers we’ve seen in over a decade, the recession made a lot of people reconsider spending at the time, so they rented. This drove up demand, and prices, for rental properties.”

Despite the sluggish economy, Miller points out that this is the perfect market for real estate investment. He adds that mortgage interest rates are also at historic lows, creating other opportunities for value investing.

“Not only do you have rock bottom prices, you’ve got a terrific market to rent out your property while you wait for prices to rise. And they will rise. Home values will come back, but the days of 3.5 percent and 4 percent mortgages aren’t going to be around forever. Once home values rise, those interest rates will rise too.”

Experts currently predict average rental costs to be 4.5 percent higher than by the end of 2011 than their value last year, and up another 3 percent in 2012. In contrast, foreclosure homes currently offer savings of anywhere from 10 percent to 50 percent off market value. As buyers who put off buying a home during the recession look to start buying again once the economy improves, it will create the opportunity for big profits for foreclosure investors.

“In a great many cases, you’re going to end up paying less on a monthly mortgage payment if you buy a home than you would in rent on the same property,” said Miller. “Could there be a better reason to buy than that?”

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Statistics show that there were 28 percent less foreclosure homes during the first quarter of 2011 then during the same period in 2010. While Illinois still holds the 10th highest foreclosure rate in the nation, Illinois’s foreclosure property market could undergo big changes.

“The number of foreclosures in Illinois has dropped every month since the start of 2011,” says James Foxx, a business analyst for ForeclosureDeals.com. “The housing market as a whole isn’t rebounding too strongly just yet, but foreclosure homes in Illinois are certainly beginning to decrease.”

A new state Supreme Court decision could also have an effect on the supply of foreclosures in Illinois. The court has established a mortgage fairness committee to review lending and foreclosure procedures in the state, and possibly changes the laws for each.

“The committee will look at the Illinois foreclosure process and probably end up slowing it down and making the requirements for a lender to pursue a foreclosure much tougher. If they’re also looking at mortgage laws, you could also see fewer homes in foreclosure in total.”

Foxx pointed out that while this is good news for the Illinois housing market, it could mean foreclosure investing in Illinois could soon become more expensive.

“Right now, Illinois, especially the Chicago area, offers some great chances to buy foreclosure properties for cheap. But now is the time to look into buying.”

In an effort to help the Illinois real estate market recover, the state legislature is also considering a bill that would no longer factor nearby foreclosures into a home’s property value. Currently, a foreclosure home in a neighborhood can bring down the value of the homes all around it. The proposed bill would legally change that, which could create a larger divide between the price for a foreclosure in Illinois and the market price for a regular home. If median home values go up, foreclosures could become more valuable if their price remains depressed.

Kendall and Will Counties had the highest rates of foreclosure in Illinois in the first quarter, and experts stress that cheap foreclosure homes are still out there, despite the uncertain market future.

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With just over 10,000 home sales in the Phoenix area in March, and nearly 1,500 of those sales occurring on Arizona foreclosure homes, the Phoenix foreclosure market is heating up. The new sales statistics are the latest in a string of signs that show the Arizona housing market could be on the road to recovery.

“Demand is starting to increase in the Phoenix area, and that’s certainly a good sign,” remarks James Foxx, a chief business analyst with ForeclosureDeals.com. “And a lot of foreclosure properties are almost brand new. There was a lot of new development before the crash, and now buyers are getting some amazing deals on brand new homes. Arizona has a lot of value for foreclosures.”

Foxx says that buyers are attracted to foreclosure properties because they offer huge discounts from traditional home prices, often as high as 50 percent or more. The state as a whole is seeing increased interest in foreclosures in Arizona, and lenders are reporting higher than normal turnout at foreclosure sales and auctions.

“The economy is beginning to rebound, and Arizona is a great place to live,” remarked Foxx. “Buyers are just regaining confidence in the market. We’ve been waiting for this to happen. There are great foreclosure homes going for great prices.”

While increased competition for foreclosures in Arizona will undoubtedly cause prices to rise, Foxx points out that with plenty of foreclosure homes currently available, the time is right to buy.

Arizona also holds a high number of Fannie Mae foreclosures. These government foreclosures are in high demand, because they are often in better condition and upkeep than other foreclosure houses. Almost half of Fannie Mae’s foreclosure homes are in the hotspots of Arizona, Florida, Georgia, and Ohio.

“Fannie Mae has a lot foreclosures in Arizona, and a lot of those are multi-family foreclosure units. If you’re an investor, foreclosures can offer a lot of value, especially in Phoenix. Multi-families make great income properties.”

With some of the lowest prices available on real estate in the country, Foxx expects interest in Arizona foreclosures to rise as the Arizona housing market continues to recover.

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California has long been home to the largest inventory of foreclosure properties in a single state, and the trend is continuing. New statistics on foreclosed homes in California revealed by ForeclosureDeals.com show that foreclosures across the state rose 35 percent between February and March of 2011. But in addition to rising foreclosure rates, California foreclosed homes are now taking much longer to get to auction. In some areas, such as San Mateo and Santa Clara counties, the average time for a foreclosure to go to auction is one year.

“The California foreclosure process has really slowed down, and it’s created a lot of great buying opportunities for foreclosure investors,” remarked James Foxx, ForeclosureDeals’ chief business analyst.

Foxx pointed out that foreclosure courts in California are making sure that each foreclosure has been carefully reviewed before going to public sale, in light of the recent “robo-signing” scandal, involving bank foreclosures that were pushed through to foreclosure without providing defaulted homeowners with time to pay off their debt.

“Foreclosures are taking 6, 9, 12 months to go to sale, and it’s slowly creating a buyer’s market.”

Home sales, however, have been on a steady rise in California in the past few months, and rose by 33 percent in March alone. Buyers are also turning to buying foreclosures in California much more often, as California foreclosure properties and distressed homes accounted for more than 57 percent of all home sales in the state in March.

Reports show that California foreclosures are common in areas nearby military bases, such as San Diego, Murrieta, and Fallbrook. Since homebuyers in these areas are itinerant military families, they often move and are unable to sell their homes in the depressed market. But foreclosure investment has also taken root in the area, with foreclosed houses bought up to be rented to new military arrivals.

“People are definitely paying attention to California foreclosures, because they offer so much value,” Foxx remarked. “When you’ve got a situation with increased interest in foreclosure investment, but a healthy supply of foreclosure homes, it’s a great time to buy. You’re going to find a lot of homes going for low prices so that lenders can sell off the backlog.”

About ForeclosureDeals:
ForeclosureDeals is a leader in the foreclosure news and foreclosure listings field. With a database of over 1.5 million foreclosure properties listed nationwide and daily updates on foreclosure advice and investment information, ForeclosureDeals is a one-stop source for foreclosure buyers and real estate investors. Visit http://ForeclosureDeals.com to learn more.

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Following the bank foreclosure scandal of late 2010 showing that many banks and lenders were sending homes to foreclosure auction without the slightest review, Florida judges have become much tougher on proposed foreclosures. ForeclosureDeals.com reports that a growing number of foreclosure proceedings are being thrown out of court, and lawyers are even being threatened with contempt of court charges for pursuing unlawful foreclosures.

“The courts are becoming much tougher on lawyers and banks who are just trying to push Florida foreclosures through to a sale without giving homeowners a chance to do something about it,” explains James Foxx, a business analyst with ForeclosureDeals. “We’re starting to see the entire foreclosure process slow down, and it could mean less new foreclosure homes for sale at auction.”

Foxx also reported that the recent collapse of David Stern’s Palm Beach County law firm has resulted in an additional 9,000 Florida foreclosure properties being held up indefinitely.

“Since Stern all of a sudden can’t represent the bank clients in court, it looks like all these bank foreclosures could be dismissed,” Foxx said.

But despite the new attention being paid to foreclosure proceedings, Florida foreclosed homes are still waiting to go to market. Chase Bank, another lending bank who’s foreclosures have been stalled by lawyers, were recently ordered to pay $4 million to their representatives, Ben-Ezra & Katz. As a result, over $400 million in backlogged foreclosure mortgages will now begin the foreclosure process.

Foxx is also careful to point out that Florida still has plenty of potential foreclosure homes in reserve, as the state has the 4th highest number of mortgages over 90 days past due. So while Florida foreclosure houses may take longer to get to foreclosure auctions in the coming months, there will still be plenty of foreclosed homes available for the 10 percent to 50 percent discounts investors have come to expect.

“We’ve still got lots of properties going into default,” Foxx said. “So as long as that’s the case, buyers can still find some of the lowest prices in the country on Florida foreclosure homes.”

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New statistics released on foreclosures in the first months of 2011 have revealed that foreclosures are on the decline in many major markets. In Massachusetts, January foreclosures were down nearly 60% from their levels in January of 2010. Nationwide, foreclosure home volumes were down 17% from the previous year, indicating that the days of a flooded market and record low prices at foreclosure auctions could be coming to a close. Even states like Florida, Nevada, Arizona and California, all foreclosure leaders, have also seen their foreclosure rates slow, and in some areas, major decreases have been noted.

“We’re seeing a general decline in foreclosures from last year, and coupled with some of the other trends we’re seeing, it could mean that the time to get the best possible prices is now,” reported James Foxx, a business analyst with ForeclosureDeals.com .

One of the trends that Foxx points to is the possible liquidation of Fannie Mae and Freddie Mac, the government sponsored agencies that account for a huge portion of the national mortgage market. After the mortgage market meltdown of 2008, government officials have expressed skepticism about continuing to fund the organizations, and experts believe this could have serious consequences for homebuyers.

“Fannie and Freddie practically invented that safe mortgage so many homeowners want, the 30-year fixed rate mortgage,” remarked Foxx. “But it’s not the kind of loan banks or private sector lenders like to provide.”

If the two mortgage agencies are shut down, many homebuyers won’t have access to the low cost loans that have increased home ownership in America over the past 50 years. Instead, if these low-cost, government sponsored home loans become a thing of the past, homebuyers will be looking at higher interest rates, more associated fees, and ultimately, less of a chance of being approved for a home loan.

But Foxx is careful to point out that foreclosure homes still offer great value. With discounts of up to 50% off market value available on hundreds of thousands of foreclosed properties across the country, there’s still time to take advantage of foreclosure sales while interest rates are low. Foxx points to the growing debate over whether foreclosure prevention measures have worked as proof that deals on foreclosures are still out there.

“We’re seeing that the foreclosure prevention programs have really only been partially effective. In many cases, they’re delaying foreclosure for long periods of time, but they’re not really stopping foreclosures from happening.”

Congress is currently debating the effectiveness of foreclosure prevention and mortgage adjustment programs designed to keep homeowners in their homes, with some representatives claiming the programs should be ended. However, whether these kinds of government foreclosure services continue or not, the potential for more foreclosures still exists, even if they seem to be tapering off in many areas.

“The key is to get out there and see what’s available now,” remarked Foxx. “If mortgages become more expensive, we believe even more people will turn to the discounts available on foreclosures to help offset those higher costs. While we’re glad to see interest in foreclosure investment on the rise, in terms of getting the best deal, more competition for foreclosure properties isn’t really the best thing for foreclosure investors looking for the lowest price.”

With increased attendance at foreclosure sales and more buyers inquiring about REO and bank owned properties reported nationwide, the increased interest in foreclosures is apparent in many areas. But with an uncertain future for both mortgage prices and the health of the foreclosed property market, now could be the best time to buy.

“Anything could happen, but with the future uncertain, anyone looking at buying a foreclosure should act now to ensure they get a truly great low price,” Foxx advised.

Those interested in buying or investing in foreclosures can find foreclosure listings in their area by consulting the ForeclosureDeals.com foreclosure listing service. ForeclosureDeals.com can provide homebuyers and investors with instant access to foreclosure properties in their area.

About ForeclosureDeals:
ForeclosureDeals.com is home to a comprehensive foreclosure listings database with over 1.5 million foreclosure homes from all over the country. To learn more about buying or investing in foreclosures, the foreclosure process or to find foreclosure listings in your area, visit http://www.ForeclosureDeals.com today.

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“2010 was a big year for foreclosure investing, and 2011 is shaping up to be very similar,” Foxx remarked.

After a record 2.8 million homes entered foreclosure proceedings in 2009, experts predicted foreclosure filings 2010 would surge even higher. As a response, Congress and the Federal Reserve pledged to do something about it. Interest rates were set low, partly as an encouragement to buyers to start buying up surplus foreclosure homes. Talk of legislation designed to reduce foreclosure filings began spreading in Washington.

The year began with a customary January slump, as foreclosure activity fell 10%. By February, foreclosures were up by only 6% from the previous year, the lowest increase in foreclosures since the epidemic began. In March, the White House revealed its plan to curb foreclosures. The plan provided increased funding for foreclosure education while giving lenders incentives for providing loan modification and refinancing for troubled homeowners. Experts, however, warned that this would only stall foreclosures, as loan modification couldn’t help everybody with trouble paying their mortgage.

By the end of April, these fears seemed well founded. New statistics revealed that foreclosures in the first quarter were 35% higher than in 2009. A closer look at the numbers revealed that much of this increase was in bank repossessions and REO homes, the last stage of foreclosure. There was a much slower growth rate in new foreclosure listings coming onto the market. With moratoriums expiring and banks looking to clear out backlogs of defaulted homes, millions more properties were set to be foreclosed.

As the hot months dragged on, the trend of increased bank foreclosures, but slower-than-normal growth in new foreclosures, continued. Summer also saw large increases in metropolitan foreclosures, and the infamous foreclosure-hotbed states of California, Nevada, Florida, and Arizona suddenly accounted for 19 of the top 20 foreclosure cities in the nation.

By September, industry figures warned that since economic conditions were not improving, the scene was set for more foreclosures. Then came a public outcry over the scandal at Bank of America and JP Morgan, where officials were discovered to have issued foreclosures on homes without even bothering to review them. The story illuminated the frustration with the foreclosure filings 2010 problem, as even the banks seemed to be overwhelmed by the sheer volume of properties.

Despite that October and November saw further decreases in new foreclosures, buyers should be aware that a swell in new foreclosures could happen at any time as loan modification periods expire and more homeowners fall further behind on mortgage payments in 2011.

ForeclosureDeals.com Business Analyst James Foxx is quick to point out the positives for these interested in buying foreclosure houses.

“We saw a lot more repossessions, but we also saw record numbers of homebuyers at foreclosure sales,” remarked Foxx. “Foreclosures are selling at rock-bottom prices, and they remain the best way for first-time homebuyers or investors to find the best deals. I think it’s clear that statistics for foreclosures in 2011 are going to look very similar to those for foreclosure filings 2010.”

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Using statistics drawn from the Foreclosure Deals database of foreclosure properties, the company revealed that bank repossessions, also known as REO properties, totaled 94,500 during July with a drop of less than 1 percent in the month of August, nearly matching the single-month record. Bank repossessions represent the final stage of the foreclosure process, but are still sold for discounts as bank owned homes. Notices of default, which mark a new foreclosure, were up 1 percent in July, but down over 28 percent from July of 2009.

The trend of increasing bank repossessions and fewer Notice of Default has been the case for several months, but experts are careful to point out that it does not signal that the foreclosure market is flagging.

“Foreclosure totals are up over 300,000 for the month of August, and that’s a huge number,” remarked James Foxx, a business analyst with Foreclosure Deals. “A lot of bank repos are occurring because they’re finally clearing out the huge log of properties that have been in foreclosure limbo due to moratoriums, loan negotiations and similar delays. Notices of default are down, but a lot of that has to do with foreclosure prevention programs. So we’re cutting down on new foreclosures, but there are still plenty of bank-owned homes out there, keeping the foreclosure inventory high.”

The top 5 states for foreclosure totals, California, Florida, Michigan, Illinois and Arizona, all saw foreclosures increase during August by at least 7 percent, except for California, which saw its totals decrease slightly by 3.1 percent. Illinois saw a staggering monthly increase of 33 percent mainly in Chicago.

The states with the highest rates of foreclosure however, Arizona, Florida and Nevada, all saw a dramatic decrease in foreclosures from August of 2009. Other states saw their foreclosure rate increase dramatically during the same time period, including Michigan, up 128 percent; Illinois, up 35 percent; Maryland, up 35 percent; and Georgia, up 13 percent.

“A lot of buyers are reporting great deals on bank repossessions,” notes Foxx. “Banks are looking to get rid of that surplus inventory, and prices have been very competitive.”

Foreclosure Deals is a leading source for detailed foreclosure listings, news and information for buyers and investors. For more information on foreclosures or to browse listings in your area, visit www.ForeclosureDeals.com .

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STORY REFERENCES: Number of Foreclosures in August, 2010 Still Falling, Foreclosure Deals, foreclosed homes for sale listings and information industry, REO properties, Notice of Default, James Foxx, foreclosure inventory, Arizona, Florida and Nevada, ForeclosureDeals

With 232,950 foreclosure homes sold during the first quarter, the total is down slightly from the final quarter of 2009, and down 33 percent from the total foreclosure homes sold in the first quarter of 2009. The falling total sales could be an indication of a shrinking market, but falling prices over the same period show that foreclosure homes can still be purchased at prices far below the national average. The price of a foreclosure during the first quarter was 27 percent below the average sale price of a traditional home sale.

“Buyers are attracted to foreclosures because they offer tremendous discounts,” remarked James Foxx, a business analyst with Foreclosure Deals. “The numbers show that each year, the total number of foreclosures sold has increased, and that’s not just a reflection of supply. They’re very popular, and for good reason, there’s no better investment value in real estate currently out there.”

According to statistics, foreclosure home sales did increase by 25 percent from 2008 to 2009, and over 320 percent since 2007. During the first quarter, foreclosures accounted for more than 50 percent of home sales in California, Nevada and Arizona. Foreclosure homes accounted for at least 33 percent of home sales in Michigan, Massachusetts, Florida, Georgia, and Illinois.

Bank-owned and REO properties accounted for 19 percent of all residential sales during the first quarter, with an average market value discount of 34 percent. Pre-foreclosure homes, or homes in default, accounted for 12 percent.

Ohio had the highest average discount on a foreclosed home in the first quarter, at 39.5 percent below market value. Close behind were Kentucky and Illinois at 39 percent, and California and Tennessee at 37 percent.

“The statistics show that buyers and investors are getting some great deals,” said Foxx. “And you don’t have to buy in the really tough markets, like Las Vegas, NV or Phoenix, AZ to find them.”

The average discount on a foreclosure home nationwide has risen from 21 percent to 27 percent since 2006.

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“Fewer foreclosure homes coming onto the market and more foreclosures being resolved by bank repossession is certainly a sign that the market is contracting,” remarked James Foxx, a business analyst with Foreclosure Deals. “We have yet to see how this trend will play out, but if it continues it will lead to fast-growing foreclosure property values for foreclosure investors who act now.”

The statistics show that the highest volume of foreclosures is concentrated in 5 states: Florida, California, Michigan, Illinois and Nevada. These states account for just over 50% of the national total. The Top 5 states for foreclosure rates remain Nevada, Arizona, Florida, California and relative newcomer Utah. Michigan saw the highest increase in foreclosures in the past year at 77%, while California saw the biggest drop, down 29%. California also saw the biggest monthly drop at 27%, with Georgia close behind, falling 21%.

Reno, NV was the only city among the Top 10 cities for foreclosure rates that saw an increase in foreclosures from April of 2009, another good sign for the national market. Other cities like Las Vegas, NV; Modesto, CA; Bakersfield, CA; Phoenix, AZ; Cape Coral, FL and Fort Myers, FL, all saw their foreclosure rates decrease over the past year.

Other states in the Top 10 for foreclosure rates were Idaho, at 1 in 226 homes; Georgia at 1 in 288 homes; and Colorado, at 1 in 337 homes. Despite being among the Top 10 states for foreclosure volume, Texas, Ohio and Virginia were not among the Top 10 states for rates of foreclosure.

Foreclosure Deals specializes in providing the most recent foreclosure news and information, as well as foreclosure listings from across the nation. Visit www.ForeclosureDeals.com to learn more.

News Source: Foreclosure Deals :: This press release was issued by Send2Press® and is Copyright © 2010 Neotrope® News Network – all rights reserved.