Are Foreclosures on the Rise Again in Florida?

Foreclosures Rise Since August 2013

REO ImageWe went through a period of foreclosures and short sales that bottomed out in August of 2013. Now, CoreLogic is reporting that REO or real estate owned properties are on the rise again. (Note: you can get an explanation of REO and see the local properties of sale at my Daytona Beach REO page.)

Florida is not leading the country this time. We are not even in the top 10, at 12th. Idaho leads the list (who would of thought that?) followed by Maryland and Nevada. REO or bank owned properties are up about 25% in Florida from August of 2013 to March of this year.

The CoreLogic article (link above) goes into some of the reasons for the rise, but I believe the primary reason is that the debt forgiveness act of 2007 was not extended. Homes that would have been offered as a short sale are going into foreclosure because owners are afraid of the income tax they might owe. Since sellers don’t receive any money from a short sale, they see no reason to risk a big tax payment and let the property go back to the bank.

What’s the Affect of Rising Foreclosures on Daytona Beach Real Estate?

It’s important to realize that the increase since August of 2013 puts us nowhere near the levels of early 2011. In January 2011, almost 700,000 homes went into foreclosure in the US. In March of 2014, the number of foreclosures was 430,000.

In the Daytona Beach MLS, 3689 properties are listed for sale as of today. Of those, 637 properties are distressed (Bank Owned, In Foreclosure, Potential Short Sale). So, 17.3% of properties are distressed. This is much lower than the 7000 homes that were on the market in January of 2008. I don’t have the exact numbers for distressed property at the time, but I can tell you that my short sale activity is way down. 2-3 years ago, about 80% of my sales were short sales or REO. Today that number is about 20%.

The affect on Daytona Beach real estate is that price increases will be moderated by more properties on the market. Banks are now pricing close to or at market in many cases, but it depends on location and condition. The best values will generally require repair and remodeling. On the beach, oceanfront and ocean side condos are rising in price and I see that continuing with few new condos being built.

My best advice if you’re interested in distressed properties is to talk to me or David. Please call Lynn at 386-566-7503 or David at 386-566-4169 to discuss you options.

 

 

 

Daytona Beach Foreclosures Resources

Daytona Beach Foreclosures Market is Hot

Daytona Beach Foreclosure, Short Sale and REO Resources

Over the past year, we’ve written blog posts and created web pages on foreclosures, short sales and REO opportunities. In February, 45% of all homes sold nationwide were distressed properties in some phase of foreclosure. The rate was even higher in the Daytona Beach area.

We’ve created this post to give a central resource for all those resources that we’ve created. As always, call me aat 888-519-9579 or Email me if you have questions or need information.

Foreclosures

Daytona Beach Foreclosures
Information on the foreclosure process and how to go about buying a foreclosed property.

Do Foreclosures Really Cost $70,000
How much does it cost a bank to foreclose. It’s important to know when you are negotiating before the bank forecloses a property.

Know the Facts About Volusia County Foreclosure Sales
Information from the Volusia County Clerk of Courts on how to go about buying a foreclosure of Daytona Beach, Ormond Beach, Port Orange or New Smyrna Beach foreclosed property.

Buy Foreclosure or Short Sale – Which is Best for Me?
A burning question in today’s market that every buyer should read.

Florida Foreclosed Homes
Cautions about scam artists and other sharks looking to rip you off.

Short Sales

Real Estate Short Sale Can Save You 20 to 40 Percent
Yes, you can save with short sales over the “market price,” but now the competition is heating up.

Daytona Beach Short Sales
Information and videos about short sales in Daytona Beach.

Daytona Beach Short Sales Buyers Video
Video, audio and a PDF file on how to buy a short sale.

Daytona Beach Short Sales Sellers Video
Not every seller is eligible for a short sale. The video explains who is eligible and how to go about the short sale process.

Daytona Beach REO Property

Daytona Beach REO Properties
The first of many pages we will create explaining the advantages and pitfalls of REO properties in Daytona Beach.

Ormond Beach, Port Orange and Daytona Beach foreclosure homes are plentiful, but there are dangers in buying many of these properties. Tax liens, contractor liens and IRS attachments could pop up after you buy the property unless you know what you’re doing. Don’t go it alone, call me today about any home or condo in the Daytona Beach real estate market.

We believe Daytona Beach foreclosure condos and homes in the higher end of the market will be increasing over the coming months. Few sales have occurred with these properties in the last year and many owners will walk away this year. This year will probably be the best year to buy a condo in Daytona Beach in our lifetimes.