Dennis Norman
By: Dennis Norman
- Short sales increased by 45 percent during the second quarter fo 2009 to 11,700 as the pipeline of seriously delinquent loans increased.
- To attempt to streamline the short-sale process, Freddie Mac has delegated increased authority to servicers to implement short-sales.
- Mortgage delinquencies continued to increase during second quarter as higher levels of unemployment contributed to new delinquencies.
- Loans that are only one month delinquent increased by 11 percent during the second quarter to 682,000.
- Loans 60-plus-days delinquent increased by 21 percent during the second quarter to 1.3 million. Approximately 227,200 more loans became 60 days or more delinquent in the second quarter of 2009.
- Foreclosure starts increased in the second quarter by 23 percent over the prior quarter to 299,200, reflecting increase in the foreclosure pipeline as the number of 90-plus-days delinquent loans increased.
- Completed foreclsoures and third-party sales during the quarter increased by 38 percent to 57,800.
The numbers show that there will be a continuing opportunity for agents to work with underwater sellers on short-sales for some time to come, and hopefully, the efforts to stream-line the short-sale process will help things move quicker. In addition, agents that work REO’s should be busy for some time as foreclosures continue to increase.
While it is a shame that much of the business available to real estate agents today is the result of other’s misfortune, the reality is that agents today have an unprecedented opportunity to really help people while practicing their trade. Agents that can become proficient at short sales and help sellers sell their homes they are underwater on instead of being foreclosed on, and at the same time help the lender mitigate their losses, are truly helping all parties concerned and should feel good about what they are doing.
The rapid growth in short-sales is almost hard to believe. In the first quarter of 2008 there were 1,776 growing each quarter and finishing the year at 15,704 for the the year. In just the first two quarters of 2009 we have already surpassed last years total number of short sales by over 25 percent with 19,759 short sales after the first two quarters of 2009.
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It’s amazing how long this is lasting but with the number of Interest only mortgages still out there, I’m sure it will last for quite a bit longer.