Atlanta Foreclosures - Foreclosures Hit Record Highs…Again

Foreclosures Hit Record Highs…Again

In a report published by the Mortgage Banker's Association last week, research shows that foreclosures hit another all time high for the 4th quarter of 2007. The 4th quarter statistics show that 0.83% of all mortgages are now in foreclosure, beating out the previous high of 0.78% -- set (oh so very long ago) in the 3rd quarter of 2007.  The last time the foreclosure rate was this high was some 20 years ago in 1985.

A whopping 30% of all foreclosures are found in the notoriously popped bubble markets of Florida and California. These two states, along with Arizona and Nevada, are also so overbuilt with new construction homes that the Mortgage Banker's Association predicts it will be a long time before the housing economy in these states begins to stabilize. Bad news for all of my clients trying to move to Georgia from Florida.

The wave of foreclosures certainly doesn't help our already depressed housing market. Even with the relief efforts currently underway by the government, experts predict that the foreclosure rate is likely to rise for a while longer. This kind of prediction only adds fuel to the big "R" talk many are having.

You would think with these kind of statistics being, well, the facts of the housing market right now, that banks would be a little more negotiable on prices and be a little more willing to work with a serious buyer. Now I'm not saying all banks, but quite a few banks that I have dealt with recently on the buying side have been pretty non-negotiable. Homes that have been on the market or in foreclosure for many, many months are still sitting there because the bank doesn't want to come off their price. Right now I am dealing with a foreclosure home that was the victim of mortgage fraud - to the tune of $150K + over market value. No matter what the listing agent or anyone else says to the bank they still believe the home is worth way more than what it's listed for (which, in a stable market, the current list price would be an OK price).  Sigh. Both the listing agent and I are at our wit's end trying to get the bank to come down to a more reasonable price that's more in line with the market's condition.

So, again, it's going to get worse before it gets better. I think at this point it is what it is, and we all need to hunker down and weather out the rest of the storm. Oh, and encourage everyone you know who can to buy a house!! Let's get some of these homes off the market!!!  Every little bit helps… 
 

Contact Louise Scoggins for all your Atlanta Real Estate needs!

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