Lender Processing Services (LPS) reported a spike in delinquency rates in the month of September 2012, compared to August 2012, which means even more foreclosures are likely to stack up on top of the existing shadow inventory.
For those who think the REO bubble has burst, this should be a wake up call. It’s not even close to being over. In fact, some banks are holding back up to 90% of their REO inventory. These foreclosed homes don’t just disappear. They need to be sold!
As of September, there are over 5.5 million homes that are delinquent or in foreclosure nationwide. The states with the most delinquencies are Florida, Mississippi, New Jersey, Nevada, California, and Texas. The Charleston, SC market has relatively few foreclosures, and many of them are great deals. Short sales outnumber foreclosures locally by about 5 to 1, an indication that banks would prefer to negotiate a short sale rather than foreclose. Buyers need to be aware that there are vast differences between the two – call Jim Bobo Real Estate. BIC of SC Land and Homes to discuss your strategy and goals. Having represented buyers in both types of transactions, we can help get you there.
Jim Bobo, Jr., Realtor, BIC, ABR, RSPS, MBA
SC Land and Homes LLC
Call or text (843) 442-7275