BofA completes more short sales than REO for last 18 months
Bank of America completed more short sales than it unloaded previously foreclosed homes every month for the last year and a half.
In May, BofA completed roughly 9,000 short sales compared to 7,000 REO, said David Sunlin, the bank's real estate management executive. With the introduction of the Home Affordable Foreclosure Alternatives program in April 2010, lenders received the first guidelines for these transactions.
Since then, banks find it easier to collect necessary documentation and reduce the time it takes to close these transactions. Recent guideline changes to HAFA could push numbers higher in 2011
Housing Report Card Points to Future Distress
John Burns Real Estate Consulting (JBREC) released a housing report card Thursday that confirms most key market indicators trending southerly, signaling more distress may be in store.
"The existing home market continues to remain weak, with most indicators still grading at poor levels and almost all of the indicators we track falling further this month," the report said.
The National Association of Realtors recorded a seasonally adjusted drop in annual resale activity to just over 5 million residences, with median resale prices down 5.4 percent in year-over-year statistics, up only according to month-to-month data.
Foreclosure delays beginning to wear off: RealtyTrac
Since major lenders delayed foreclosures to fix a broken process late last year, the amount of filings declined, but in May signs emerged the effect might be wearing off.
Lenders filed default notices, scheduled auctions or repossessions on 214,927 properties in May, a 2% drop from the previous month and down 33% from one year ago, according to RealtyTrac, which tracks the filings. But activity spiked along various stages of the foreclosure process in certain states.
"This pattern provides evidence that lenders are somewhat unevenly pushing batches of bad loans through foreclosure as they overhaul their paperwork and documentation procedures and as they determine that some local markets are able to absorb more foreclosure inventory," said RealtyTrac CEO James Saccacio.
Home sales rise in Broward & Palm Beach as prices drop
South Florida home sales remained strong in May, capping a robust spring buying season. Sales of existing homes in Broward County hit 1,142, up 6 percent from a year ago, the Florida Realtors said Tuesday. Palm Beach County sales soared 26 percent to 1,115.
It was the third consecutive month that the two counties eclipsed 1,100 sales.
Prices were a different story. Broward median's price was $188,500, off 17 percent from a year ago. Palm Beach County's median of $214,100 was down 9 percent from a year earlier. The median means half sold for more and half for less.
Home prices in Broward and Palm Beach counties are expected to keep falling into next year, though the steep declines are likely over, analysts say.