• In 2011, there were 1,887,777 foreclosure filings (including default, auction, and bank repossession notices) in the U.S. Though, 1.9 million homes seems like a daunting number, it is actually the lowest it has been since 2007. The 1.9 million homes that went into foreclosure in 2011 is down 34% from 2010, 33% from 2009, and 19% from 2008.
• Nationally, in December 2011, 1 in every 634 homes received a foreclosure filing. The Knoxville real estate market fares significantly better than the national ranking. In Knox County, 1 in 1136 homes received a foreclosure notices. To see how other East Tennesee counties fared, check out the Foreclosure Rate Heat Map on RealtyTrac.com.
• Scheduled auctions hit a 49 month low in December. It was down 19% from November 2011 and 20% from December 2010.
• Default notices were also down in December, down 19% from November, and down 23% from December 2010.
• Still, despite what shows to be a decrease in foreclosure filings for 2011, RealtyTrac also reported that the time table for foreclosure proceedings has actually increased in 2011. Foreclosure filings took an average of 348 days in the fourth quarter of 2011, up from 336 days in the third quarter in 2011, and up from 305 days in the fourth quarter of 2010.
• In the state of Tennessee, the foreclosure process takes less than two months, with a process period of 40-45 days and a sale publication of 20-25 days. The state with the longest foreclosure process is New York, which takes an average of 1,019. New York is closely followed by New Jersey, which takes on average of 964 days.

What do you think these numbers mean for the Knoxville real estate market, and other areas of the nation?

So what exactly is the FHA anti-flipping rule?

The FHA anti-flipping rule does not allow homeowners, who have an FHA insured mortgage, to sell their homes any sooner than after 90 days of home ownership. The Federal Housing Administration, under the Department of Housing and Urban Development, instated this rule to prevent properties from being sold at artificially inflated prices by a seller, who purchased them for significantly less. With foreclosures being so prevalent, the rule was put into place to protect home buyers from artificially inflated prices.

What does this mean for people buying or selling their home in Knoxville?

It means that Knoxville home buyers and seller are not longer constrained by these regulations, at least through the end of the year. The waiver allows properties to sell as quickly as possible, hopefully allowing the real estate prices to stabilize, particularly in areas that have experience high foreclosure rates.

Are home buyers in Knoxville still protected from predatory property flipping?

The FHA still has strict regulations to ensure that Knoxville home buyers are protected against predatory property flipping. For example, there may be no link between the buyer and seller. In addition, if the sales price of the home exceeds an increase of 20% or more in sales price, the anti-flipping waiver will only be valid if the lender meets particular conditions and fully documents and justifies the increase in price.  A full list of rule and restrictions can be found here.

How do you feel about the FHA Anti-Flipping waiver? Does it benefit people buying or selling their homes in Knoxville?

The number of foreclosure filings rose 3 percent in September, according to foreclosure-tracking firm RealtyTrac. The term “foreclosure filing” is a catch-all word for housing, comprising default notices, scheduled auctions, and bank repossessions.

September marked the 19th straight month that the number of filings topped 300,000, and the first month in which 100,000 repossessions were logged.

As usual, a small number of states dominated the national foreclosure figures, accounting for more than half of all repossessions.

1. California : 17% of all repossessions
2. Florida : 13% of all repossessions
3. Michigan : 7% of all repossessions
4. Arizona : 7% of all repossessions
5. Texas : 5% of all repossessions
6. Georgia : 5% of all repossessions

Thankfully for home sellers, mortgage servicers appear to be metering the pace at these newly bank-owned homes are made available to the public. RealtyTrac notes that, in doing so, servicers prevent “the further erosion of home prices”.

That said, distressed properties still sell at a steep discount.

In the second quarter of 2010, the average sale price of homes in the foreclosure process was 26 percent lower than the average sale price of homes not in the foreclosure process. It’s no surprise, therefore, that, based on RealtyTrac’s preliminary data, 31 percent of all homes sold in September were “distressed”.

There’s lot of good deals out there, in other words, but they come with certain risks.

Buying a foreclosed home is not the same as buying a non-foreclosed home. Specifically, you’re buying from a corporation and not from a “person”. Contracts may vary, and so may terms.

Therefore, Knoxville home buyers — even experienced ones — should talk with a real estate agent before making an offer. It’s important to understand the foreclosure-buying process.

Foreclosure filings rose 4 percent nationwide last month versus June, according to foreclosure-tracking firm RealtyTrac.com. For the 17th straight month, total filings topped 300,000.

A foreclosure filing is defined as default notice, scheduled auction, or bank repossession.

As with most months, just a handful of states dominated foreclosure activity nationwide.

• California : 14.9 percent of all activity
• Florida : 11.6 percent of all activity
• Arizona : 6.4 percent of all activity
• Michigan : 6.2 percent of all activity
• Georgia : 6.1 percent of all activity
• Texas : 4.9 percent of all activity

Together, these 6 states represent just 30 percent of the overall U.S. population.

The other 44 states (and Washington D.C.) were home to the remaining 49.0%.

Despite this imbalance, though, in all markets, foreclosures and REO are making a profound impact on pricing and product. “Distressed” homes now represent 32 percent of the overall resale market nationwide, according to the National Association of Realtors®.

Buying a foreclosed home can make for a terrific “deal”, but buying in the REO market is decidedly different from buying a non-foreclosed property.

As 3 examples:

1. Buying bank-owned homes can take 120 days to close.
2. Foreclosures aren’t always listed for sale publicly. Some inventory is privately-held.
3. Bank-owned homes are often sold “as is”. There may be defects that render the homes mortgage-ineligible.

If you have an interest in buying REO, consider talking with a real estate agent first. Even the negotiation process is different as compared to a non-distressed sale. It helps to have an experienced professional representing your interests.

313,841 foreclosure filings were made in June, according to foreclosure-tracking firm RealtyTrac. The figure represents a 3 percent drop from May and 7 percent drop from June of last year. However, foreclosure filings remain relatively high nationwide.

June marks the 16th straight month the filings topped 300,000. 1 in every 411 U.S. homes received some form of notice last month with foreclosure density varying wildly from state-to-state.

Like everything else in real estate, it seems, foreclosures are a local phenomenon.

The states with the highest foreclosures per capita were:

• Nevada : 1 foreclosure filing per 88 homes
• Florida : 1 foreclosure filing per 171 homes
• Arizona : 1 foreclosure filing per 189 homes

The states with the lowest foreclosures per capita were:

• Vermont : 1 foreclosure filing per 26,051 homes
• West Virgina : 1 foreclosure filing per 8,058 homes
• South Dakota : 1 foreclosure filing per 6,528 homes

Overall, 40 states beat the national Foreclosure Per Capita average and 10 states fell below. The sheer volume of REO, though, is creating interesting buying opportunities for first-timer buyers, move-up buyers, and real estate investors in Farragut.

Homes bought from banks are usually less expensive than non-foreclosure homes. This is one of the major reasons why distressed sales account for roughly 30 percent of all home resales. Less expensive, though, doesn’t always mean “cheaper”. Foreclosed homes are often sold as-is and may be defective or otherwise uninhabitable.

Making repairs to get these homes into “living condition” can be costly.

Therefore, if you’re buying a foreclosed home, make sure you know what you’re buying before you make your bid. Have a certified professional inspect the home to check for damage, and consider enlisting the help of a real estate agent to assist with negotiations and management of the contract.

The process of buying a foreclosed home is different from buying a typical resale. Make sure you do your homework.

According to foreclosure-tracking firm RealtyTrac.com, bank repossessions reached record levels for the second straight month in May, topping 93,000 properties nationwide.

As compared to May 2009, all 50 states now show an increase in annual REO activity.

Data like that won’t surprise today’s active home buyers in Farragut.  Foreclosed homes are prevalent, available and accounted for one-third of all home resales made in April.

Furthermore, total foreclosure actions — the sum of REO, default notices, and foreclosure auctions in May — topped 300,000 for the 15th straight month.

Foreclosures remain a huge influence on the housing market.

However, two interesting trends emerged in the data:

1. 9 of the top 10 metro areas for foreclosure posted annual activity decreases
2. Each of the top 4 states for Foreclosures per Household posted annual activity decreases

We can infer, therefore, that foreclosure activity may be in permanent decline in the areas hardest hit through 2007, 2008, and 2009.  In 2010, the data shows, foreclosures are waning.

This is reason for optimism — especially as FHA delinquencies slow nationwide. As fewer homeowners go delinquent, the pace of foreclosures will slow further and that should help boost home values on every block in the country.

If you’ve been considered bank-owned homes for your own purchase, give a look at the RealtyTrac foreclosure report.  It’s provides insight on a state-by-state level, and in the nation’s largest metropolitan areas.

Then, to complement your research, talk to your real estate about the foreclosure market and what opportunities may exist.   Competition for bank-owned homes can be fierce at times, but there’s plenty of “deals” out there.

You just have to know where to look.

Will It Increase Short Sales In Knoxville??

The real estate market in Knoxville seem to be improving somewhat??  But there is something out there that could increase Knoxville Loan Modifications as well as the number of  Knoxville Short Sales.  It is what is known as the “Shadow Inventory”? What is it? How will effect the Knoxville real estate market and markets around the country. Will there be more short sales in Knoxville and around the country. These are the things we will explore in this  3 part series.

In recent months, aspects of the real estate market have seem to have stabilized. Homes sales and prices have been increasing, partially to be credited to the First Time Home Buyer’s Tax Credit that ended on April 30, 2010.

Still, interest rates and foreclosures have been increasing. And, we’ve been hearing more and more about the term “shadow inventory” in the news and what kinds of problems it could bring to to the real-estate market.  So, what’s the prognosis for the real estate market? And, how does the term “shadow inventory” factor in?

The definition of shadow inventory varies from person to person and how far ahead in the future that person is looking. And with the varying of definitions, comes a great variation in the ultimate level of desctruction that it will cause to the already fragile real-estate market.

According to recent studies from, Amherst and the National Association of Realtors (done by economist Selma Lewis), the devastation of shadow inventory that could hit the market is anywhere from 2.49 million homes, as predicted by NAR, to 7.57 homes, as predicted by Amherst.

To anyone with interests in the real estate market, these numbers could have crucial impacts on the market for years to come.  If this number of houses does get on the market like many experts are predicting, it would cause a huge inventory of houses to hit the market causing already low home prices to become much, much lower.

The definition of shadow inventory has evolved greatly.  To clear things up, here are a few different definitions:

Definition 1: All properties that are real-estate owned (REO) — that is, homes that are repossessed by lenders, but not yet on the market.

Definition 2: Homes that are REO, homes that are seriously delinquent on payments and likely to be entering into the foreclosure process, or homes that are entered into the foreclosure process.

According to the Mortage Bankers Association’s last National Delinquency Survey, in the fourth quarter of 2009, there were 7.33 million loans that were delinquent or in foreclosure.  This fact could possibly suggest that lender’s are playing a game of “extend and pretend” – meaning that they are delaying the inevitable of homes going into the foreclosure process.  Data from the Loan Processing Services (LPS) seems to support this idea, at the end of February 2010, there were 6.89 million homes that were delinquent and only 1.79 million of those were in the foreclosure process. Data from LPS also shows that in 2008-2009, loans that were 30-60 days late remained relatively stable, but loans that were “seriously delinquent” or 90+ days late were increasing rapidly.

Despite these dismal predictions though, there is some silver lining: not all of these properties will end up on the real estate market, some will be cured by Knoxville  loan modifications, Knoxville short sales or refinances.  Another huge influence on how the influx of properties will affect the market depends on when and how quickly these properties enter onto the market. If the hit the market gradually, they could ultimately just be absorbed without much effect on the market by pent-up demand and growth in housing formation.

Though, definitions and statistics on shadow inventory vary there, is one thing that can be agreed upon: there are many houses currently in limbo.  What is left to be said, is when and how many of these houses will hit the market and predicting these facts is about as easy as trying to predict the weather.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

The national foreclosure rate is finally falling. But there is still a back log of homes where homeowners are behind on their mortgage payments. The shadow inventory is large and still going. These are homes in Knoxville and around the country where the homeowners are behind on their mortgage payments and trying to do a loan modification or considering a short sale. I personally have seen an up tick in my business with area Knoxville homeowners who want to sell their home on a short sale in order to avoid foreclosure

According to foreclosure-tracking firm RealtyTrac.com, the number of foreclosure notices dropped 2 percent between April 2009 and April 2010.

2 percent may not seem like much, but it’s the first time in the history of the RealtyTrac report that the annual foreclosure rate has dropped.

To be sure, foreclosure rates remain elevated — more than 300,000 were reported last month, but default notices appear to be approaching a plateau.

The RealtyTrac report shows some other interesting statistics, too:

• 6 states accounted for more than half of April’s bank repossessions nationwide
• For the 40th month in a row, Nevada topped the nation’s foreclosure rate
• Foreclosure rates dropped in both California and Arizona, 2 foreclosure hot-spots through 2009

The good news for housing doesn’t stop there.  9 of the top 10 leading metropolitan areas for foreclosure-related activity showed a drop in annual activity.  Only Reno, Nevada showed an increase.

Buying distressed homes is big business, according to the National Association of Realtors®, accounting for 35 percent of all home resales with a typical discount ranging near 15 percent on value.

But with the discount comes some caution. You need to know how buying a foreclosed can be different from buying a non-foreclosed home.

For example, distressed properties are often sold as-is and may have defects that render them “un-lendable”.  Secondly, “quick closings” aren’t usually possible with bank-owned homes — you’re often at the bank’s schedule and mercy.

And, lastly, not all foreclosed homes are searchable online. You’ll usually find more stock if you work with a real estate agent versus searching online.

The RealtyTrac foreclosure report is thorough and can help you gauge what’s happening on a state-by-state level, and in the nation’s largest metropolitan areas.  Once you’ve done your research, talk to your real estate agent about what to do next.

This is good news for the Knoxville Estate Market and around the country. But we aren’t out of the woods yet there are still tough times ahead for many homeowners.

If you are a Knoxville Home owner facing foreclosure you do have options. It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

So your a Knoxville home owner..You are having a tough time making the mortgage payments on your Knoxville home.. You are not alone… So what do you do?? You have heard about all the solutions out there for you, researched them on the internet. Should I sell my Knoxville home using a short sale because I owe more on it than it is worth? How about a loan modification how does that work.. Will my lender even work with me if I choose to sell my using a short sale? How about a deed-in-lieu instead of my home being foreclosed on by my lender..How does that work?? What if I have 2 mortgages on my home??

Are these some of the question you are asking yourself?? If you are having trouble making your mortgage payments and don’t know where to turn you do have options other than foreclosure. You have don’t remember your lender doesn’t want to won your home. they are in the business of loaning money not real estate.

If you are having trouble the first thing you should do is contact your lender and let them you know you are having trouble making your payments and why. Then you should contact a qualified representative like a CDPE to discuss your options. That way you can make an educated decision that is best for you and your family once you have all the facts.

Are You Eligible for one of the Government Programs??

The government programs currently available to homeowners can be valuable resources, but only if you know which ones are right for your situation.

That’s why I’ve created this free resource that lets you find out which programs you’re eligible for. Read the descriptions for each program to see which one fits your situation, then fill out the corresponding survey to see if you are eligible.

Find out here or get more details here

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

In my last post we talked about part 4 “About The Buyer”. Today I’m going to cover getting the “Short Sale Packet To The Lenders”

This can be the most frustrating part of a Knoxville Short Sale getting the short sale packet to the lender.  The first thing my team does when we list a home for sale that is going to be a short sale is call the loss mitigation department. We confirm the correct fax number and then we fax the authorization to release information about the home. By doing this prior to having an offer it gets a file setup on the property with the loss mitigation department. Just this simple process can take up to a month and will save valuable time once you do have an offer. It has help us get our homes closed quicker .

Once we do have an offer on the home we fax the complete packet to the lender. Then from this point forward it is following up with the lender every couple of days to verify they have gotten the short sale packet. We also verify at this time that they have everything they need from us in order to process our files. We continue follow up with the loss mitigation department until it gets to the next step the negotiator.

During this process files get lost going from one part of the loss mitigation to the other. So it isn’t unusual for us to have to submit the packet several times prior to getting to the negotiator.

This is Part 5 of how to achieve a successful short sale in Knoxville, TN.  It takes a train professional like myself with the CDPE designation to help guide a distressed homeowner through the short sale process. As a CDPE we are up to date on all the latest trends and changes that are going on in order to help homeowners who may be facing foreclosure.

If you are a Knoxville homeowner having problems making you mortgage payments and want to know your options. Please feel free to download my free reports

You do have options as a Knoxville homeowner who may be facing foreclosure. Don’t let your home go to foreclosure call me at 865-675-8326 or email me Rick@KnoxvilleHomeSaver.com let’s setup a time to talk about your situation and talk about your options. I’m here to help you as a trained Realtor with the CDPE designation I can help you…

Also Read

7 Steps To A Successful Knoxville Short Sale

7 Steps To A Successful Knoxville Short Sale Part 1

7 Steps To A Successful Knoxville Short Sale Part 2

Part 3

Part 4