The latest reports on foreclosures nationwide include a couple of startling pieces of information!

Realty Trac reported 9-16-2010 that foreclosures increased 4% over the previous month but declined 5% in August when compared to August of 2009.  In addition, they reported that a record number of homes were actually taken back by banks in August 2010 was the highest on record ever!

What does it all mean?

Realty Trac makes the point that the foreclosure process and pipeline of properties is being CAREFULLY MANAGED BY LENDERS AND SERVICERS.  That is a critical point.  Usually supply and demand determine market value.  Today, supply and demand is being managed by the lending industry and government regulation.  Homeowners and the real estate industry are at their mercy.

From my perspective the fact banks have decided to take back a record number of properties is the most significant information released today. Banks don’t want property unless they think it is in their best financial interest to take it.  For the past two years lenders have stalled the foreclosure process to avoid taking properties. Some homeowners have remained in their home without making payments for 2 years or more.  Clearly, lenders see a financial benefit taking the properties back and ultimately selling them. That is an early sign of a real estate recovery.

The Big Picture is an interesting discussion  but it really doesn’t mean very much to buyers and sellers in today’s market.  There is too much information available.  Understanding how it applies to your particular deal or property requires  a competent, professional, Realtor, with in-depth knowledge of the local market.  I am reminded of the thought that drives home this point.  ”The economy may be global but it takes a local professional to understand the territory.”

I would love to hear your comments or questions!

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Call (909) 584-2202 or email MarkDolan@RealtyExecutives.Com