FORECLOSURE RATE UPDATE

FORECLOSURE numbers and news articles...It's certainly hard to avoid them in the media right now. Although all this press is certainly not good news relating to the housing industry, it does not mean the sky is falling either. Many people are under the impression that a large percentage of existing homes are in foreclosure. In reality, the number of homes in foreclosure is still a relatively small number at one filing for every 534 homes nationally, but the rate of filing has certainly risen, hence all the press attention. With that preface stated, lets actually take a look at the numbers.

Nearly 60 percent more U.S. homes faced foreclosure in February than in the same month last year, with Nevada, California and Florida showing the highest foreclosure rates, a research firm said.

A total of 223,651 homes across the nation received at least one notice from lenders last month related to overdue payments, which is up 59.8 percent from 139,922 a year earlier, according to Irvine, Calif.-based RealtyTrac Inc. Nearly half of the homes on the most recent list had slipped into default for the first time. Most of the troubled properties were located in California, Florida, Texas, Michigan and Ohio -- states where home prices have plunged as the housing boom went bust.

For the Sarasota area, foreclosure action in the first two months of 2008 was nearly three times greater than at the same time last year in Manatee, Sarasota and Charlotte counties.
The 3,683 legal actions so far this year -- actual lender takeovers, notices of delinquency and other advance warnings of foreclosure -- compares with 1,322 for the first two months of 2007 and about 14,000 for all of 2007,

On a national level, February's total represents a 4 percent dip from January, but the decline was just a seasonal blip, said Rick Sharga, RealtyTrac's vice president of marketing. "We seem to be settling in at a new plateau in terms of monthly activity, but it's a much higher plateau than we were at a year ago," he said. February marked the 26th consecutive month with a national year-over-year increase in foreclosure-related filings.

Meanwhile, the number of foreclosed properties that didn't sell at auction and ended up going back to lenders soared more than 110 percent last month versus February 2007, RealtyTrac said. Last month, some 46,508 properties were repossessed by lenders, up from 22,114 a year earlier.

In the 12-month period ended in February, 45 states saw an increase in the number of homes that had received at least one filing. The latest data suggest many homeowners across the nation continue to struggle with mortgage payments, despite highly publicized efforts by government, financial institutions and consumer advocacy groups to modify loan terms or work out long-term repayment plans for troubled borrowers.

In Florida, 32,447 homes reporting at least one filing, up more than 69 percent from February last year and up more than 7 percent from January. Rounding out the top 10 states with the highest foreclosure rates were Arizona, Colorado, Michigan, Ohio, Georgia, Indiana and Tennessee.

So, in the end, YES, foreclosures are up, but it is still only 1 home in 556! It is a GREAT time to buy right now. Prices have adjusted considerably from where we were a couple years ago, interest rates are still very good, and sellers are willing to D E A L ! A true Buyer's market! Several buyers have told me they want to wait for prices to drop a little more, but trying to time the housing market is risky (just as it is in the stock market) There is another factor to consider......interest rates. Unless the buyer is paying 100% cash, they will use financing. If interest rates rise 1/2 point or more from now until the buyer is ready to buy, they may have actually cost themselves a higher monthly payment over buying now. No one knows where the exact bottom of the market will be, BUT, I can tell you that interest rates are very good right now, and will more likely be higher than lower next year. If you plan to stay in your home for 3-5 years, then trying to time the market is ill-advised. THIS is the time to buy!

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Let's get started, and as always, give me a call when you are ready to buy!!!!