Foreclosure Filings On The Rise

Jenell Fontes

Could this be true and here I am with two REO Listings? Foreclosure filings are on the rise! How will this affect your homes value? A new housing report shows that a stream of new homes entered foreclosure in August as a backlog of delayed bank repossessions trickled into the desert market.

There were 240 foreclosure filings across the Coachella Valley in August, up 10.6% from July, according to RealtyTrac, a real estate information services firm based in Irvine. Foreclosure activity increased 27% from last August.

California foreclosures follow three steps: notices of default, scheduled public auctions and finally bank repossessions, if the owner fails to pay what is owed during default. These are called REO, or real estate owned, sales."

REO 1189 N Rose Ave Palm Springs, CA 92262

Just because a home is in the foreclosure process does not mean that it will be on the market as a foreclosed home. The banks are working with homeowners for loan modifications and short sales. Only a small percentage of homes are actually foreclosed. Once they are foreclosed the bank seems to be dragging their feet to put the homes on the market. In many cases they are doing all their own rehab and taking the profit margin off the table for investors. Finding a deal to flip for profit is like finding the Holy Grail. My investors still working this business model have seen their profits shrink from 30-35% in 2011-2012 to 10-15% today. They are now trying to make the difference up in volume.

REO 71845 Eleanora Rancho Mirage, CA 92270

The numbers tell us we are clearly in a recovery mode, but it's still a slippery slope that could be derailed by the slightest economic change. The good news is that Americans still want to own their own home and consumer optimism is very much on the rise. If you are interested in buying or selling your home call me and I'll help you ask the right questions and find the right data to help you make a decision that fits your life and expands your financial portfolio. (760) 831-4126

Thanks to Dominique Fong for this great article about valley foreclosures in The Desert Sun: http://desert.sn/1BA2OUq

See a detailed report of my REO listings pictured above here: http://bit.ly/1sNnPwg

www.jenellfontes.com

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