15% of the Homes are Bank Foreclosures in Utah County and 25% are Short Sales
Utah County is Experiencing a Massive Amount of Distressed Properties
Across the nation a record 2.8 million households were threatened with bank foreclosure last year, and that number is expected to rise this year as more unemployed and cash-strapped homeowners fall behind on their mortgages.I think unemployment will rise in 2010 across the nation and in Utah County. People are struggling to pay their mortgages. I visited our favorite east indian restaurant in Provo last week. The owner told me that his sales are down 30%. It seems like many businesses are down since last year. This means their is less cash to go around our county.
The number of households that received a foreclosure-related notice rose 21 percent from 2008. One in 45 homes were sent a filing, which includes default notices, scheduled bank foreclosure auctions and bank repossessions. This number is getting higher every year.
In December, more than 349,000 households, or one in 366 homes, were hit with a foreclosure-related notice. That represents a 14 percent spike from November and a 15 percent jump from December 2008. Banks repossessed more than 92,000 homes, up 19 percent from November. That increase was likely due to lenders working to clear their books at the end of the year. When will we really get to the bottom of this mess?
Stemming the tide of foreclosures is an important step for the real estate market and the economy to recover. Because foreclosures are usually sold at heavy discounts they can lower the value of surrounding properties. Cities lose property tax dollars from empty foreclosures and declining home values, straining local economies. Home prices have stabilized in some cities, but are still down 30 percent nationally from mid-2006. I sold ashort sale in Springville, Utah that was originally listed two years agot for $875k. I sold this same home for $380k. Yes, that is about a 60% decline.
The foreclosure crisis isn't over in Utah County.
One plan intended to help homeowners is the Obama administration's loan modification program known as Making Home Affordable. Lenders participating in the program have offered trial loan modifications to 760,000 eligible borrowers since it was launched in March 2010. A loan modification changes the terms of the loan, such as lowering the interest rate, to make the monthly payments more affordable. I have spoken with some of my clients that are currently trying to qualify for this program. I have blogged about this program in the last few weeks. As of November, just 31,000 of them had been made permanent. Nearly the same number had dropped out of the program or were found to be ineligible.
Economic issues, such as unemployment or reduced income, are expected to be the main catalysts for foreclosures this year. Homeowners with good credit who took out conventional, fixed-rate loans are the fastest growing group of foreclosures. This sector of the market has traditionally been very stable. This group is the next wave of foreclosures.
Opinion of Utah County Real Estate Broker
Do we really want the government and tax dollars to keep rescuing corporations and home owners in distress? I think the governement should be more responsible with the people's money. I am truly sorry for those that have lost properties in bank foreclosure. I deal with this subject every day. I care about these people and hear their anguish. However, the governement should stop spending money and focus on the debt of our almost bankrupt nation. We don't want anymore rescues, bailout, cash for clunkers, real estate stimulus programs. We want the governement to limit spending and act in a more responsible manner before everyone is completely bankrunpt and our economy is left desolate.
I admit the real estate stimulus program helped me make more money last year. More fence sitters rushed in for the $8k grab. It made our business artificially spike. Like a drunken sailer we will be in trouble when the stimulus ends ore we run out of alcohol. I believe the real estate market needs to stabalize by itself without government interference. Yes, even if I make less money. Let's fix the real estate market correctly.
The same three states that led the nation in foreclosure rate in December also posted the highest rates for the entire year: Nevada, Arizona and Florida. The other states ranked in the top 10 for the year were California, Utah, Idaho, Georgia, Michigan, Illinois, and Colorado. Yes, that is correct Utah. It is disappointing to see my state in the top 10 bank foreclosures. I know my opinion is controversial. If you agree or disagree please comment below
See a list of current bank foreclosures in Utah County.
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Paul Teasdale, Principal Broker
ABR, CRS, e-PRO, QSC, Finance BYU
15 Years Experience, 800+ Homes Sold
Team Teasdale Realty, Utah County Real Estate
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Categories: Utah Economy, Utah Statistics and Data, Utah Bank Foreclosures, Utah Short Sales
Tags: short sale bank foreclosures utah real estate agent market conditions bank foreclosure
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