Scottsdale, Arizona (PRWEB) August 2, 2006
According to Tim Rocho, CEO of the data provider and investment training company Real Estate Fortune (http://www.refortune.com), "NOTS filings (notices of trust sale start the legal foreclosure process) increased from 776 in June to 837 in July. This is the highest number since April of 2005."
Cancellations (properties that are sold or mortgages that are caught up to stop the foreclosure auction) hit the lowest level since we started tracking data in 2001. This coupled with the increased filings moved total outstanding foreclosures up for the second month in a row to almost 2,500.
“It appears we have the beginning of an upward trend in Arizona foreclosure homes. Outstanding foreclosure inventory has been decreasing sharply since the beginning of 2004 and until May of this year we were experiencing record low NOTS filings, but the last three months have shown a reversal," Rocho states. "We are seeing more defaulted properties with a high LTV, so it’s more difficult for owners to refinance and for investors to have incentive to work with these properties.”
"There won't be a sharp rise in bank owned properties (REO’s) short term, but if the LTV’s get to 95% or more, we'll start to see more workouts and short sales by the lenders. And other news broke today that I believe will affect the real estate market. First, according to the Bureau of Economic Analysis (BEA), even though Personal Income has been rising, 'we have had a NEGATIVE SAVINGS RATE for the past 5 quarters'. Simply put, Americans are spending more than they are making," he said. "Second, Freddie Mac (that buys first and low income home buyer mortgages) said today that they would limit retained mortgage portfolio growth. This lessens the outlets for mortgage companies to move their paper to."
"If you put these ingredients into the kettle with higher gas prices, higher LTV's, higher interest rates and trillions in adjustable rate mortgages getting ready to adjust up, I think it's a recipe for increasing defaults and foreclosures,” said Rocho.
About Real Estate Fortune
Real Estate Fortune sends it’s subscribers’ daily data on all of the activity that happened in the foreclosure market that day. Their research partner, The Information Market, has well over a decade of experience in the property data business and has a staff of people researching sales, cancellations, new filings and trustee information for subscribers and investors.
Subscription information can be found at http://www.refortune.com/data_subscriptions.php
The company has also developed a highly effective series of training programs for the new real estate investor, or those who would like to take their effort to the next level. More information about Tim’s 90-Day Investor Challenge Training program can be found at:
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7702 E Doubletree Ranch Rd
Scottsdale AZ 85258