More Bank Owned Homes Nationwide for Buyers

Published by nora | Filed under Buyer / Seller Tips, Communities, Market Trends, Miscellaneous, Mortgage / Finance, Real Estate, Shout Outs

There are more bank owned homes for buyers nationwide as bank repossessions increased in May for the second consecutive month, based on a report released by RealtyTrac.

Nearly 94,000 homes were repossessed by mortgage lenders in May, more than the 92,432 homes that became bank owned in April. Overall foreclosure filings dropped in May – these included default and foreclosure sale notices – but the number of units taken back by lenders increased.

The increase in bank repossessions amid the decrease in default and foreclosure sale notices meant that mortgage banks stepped up the completion of filed foreclosure cases and slowed filing of new cases. Analysts contended that banks preferred pursuing repossession of homes that have been in the foreclosure process for a long time rather than filing new cases.

Many of these old foreclosure cases may have been given chances of rescue under the Home Affordable Modification Program, but they ultimately failed. Similarly, newer cases are also being given chances of being modified under the program. However, many housing advocates say that the federal loan modification program is not successful because lenders are just going through the motions of complying, and are not really sincere in helping homeowners.

Recently, the Treasury Department reported that there were only about 68,000 trial modifications that became permanent in April, and that the total number of troubled borrowers given permanent modifications since the start of HAMP last year was only 300,000, far below the estimated 3.28 million delinquent mortgages nationwide that were eligible for modification.

Just like in previous months, California again posted the highest number of bank owned homes in May – nearly 16,000 units – although the number marked a drop of 5.8 percent from 16,932 in April.

Florida was second with nearly 11,000 REO homes, a jump of more than 18 percent from the April total of 9,259 REO units.

Michigan was third with more than 8,000 units in bank owned listings, an increase of more than 28 percent from 6,252 units in April.

All in all, the total number of residential units that became bank owned homes in May in the first seven states with the highest number of filings was 54,163.

Contrary to some misinformation, bank owned homes are bought just like any other residential real estate. The properties can be inspected before closing and can be bought with home loans. Many of them are also in good condition and need only minimal repairs. Closing costs are not higher as reported by others because banks pay the overdue taxes, HOA bills and other fees before they resell these foreclosed homes.

For prospective buyers who want to look at these bank repossessed homes, they just have to contact reliable realtors in their cities. These realtors have special partnerships with banks and they usually get the listings before other parties do.

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