Pre Foreclosure Rates Decline in Hard Hit Regions

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Las Vegas, Miami & Phoenix all see pre foreclosure rates decline in Q2 2010

Provider of pre foreclosure data is reporting there are substantial signs of pre foreclosure statistics improving all over the Default Research coverage areas

Default Research (http://www.defaultresearch.com), the premier provider of pre foreclosure data is reporting there are substantial signs of pre foreclosure statistics improving all over the Default Research coverage areas, including Las Vegas, Miami, and Phoenix. The county with the most significant improvement was Miami-Dade County with a 30 percent decrease. Miami-Dade is not alone and their positive changes were aided by new laws encouraging mortgage modification plans and short sales. Also banks have begun to be more cooperative and efficient at handling short sales which is also easing the foreclosure crunch. Finally, with more education and assistance, many homeowners are able to modify their mortgages to stay in their homes. Major city statistics are below with comments from Default Research founder Serdar Bankaci.

Wayne County, Michigan
Wayne County pre foreclosures increased by approximately 4.13 percent in the second quarter of 2010. The number of Trustee Sales published in the second quarter was 6,124 which were up slightly from 5,881 in the first quarter of 2010. The hardest hit city in Wayne County was Detroit with 2,111 Trustee Sale notices followed by Dearborn with 474, Redford had 272, and Westland saw 272 Trustee Sales. Of the Trustee Sales advertised in the second quarter of 2010, over 95 percent of these were single family and condominiums.

According to Bankaci…
“The short term housing indicators in Wayne County fair better than the other hard hit regions in the extensive Default Research coverage area. Second quarter median home values remain slightly upward sloping while inventories have remained level. I would be hard pressed to say the worst is over for Detroit, but at least from a real estate prospective, it may be that we see some stability in the rest of 2010.”

Clark County, Nevada
The number of Notice of Defaults and Notice of Trustee Sales in Clark County, NV dropped by just over 10 percent from quarter one of 2010. In the first quarter of 2010, Default Research saw 10,841 unique pre foreclsoures recorded while in the second quarter the number dropped to 9,687. Of the pre foreclosures recorded in quarter two of 2010, 95 percent were made up of single family homes and condominiums. The remaining five percent were predominantly multi-family and apartment buildings. The city of Las Vegas’ numbers were the highest with 3,616, followed by North Las Vegas with 616, and Henderson at 583.

According to Bankaci:
“After two years of steady decline in home prices, forward looking indicators show that median home prices did stabilize in the second quarter of 2010. However, after home prices were at an all time low in the early part of quarter one in 2010, it should be noted that home inventories have started to grow again in the second quarter of 2010.”

Los Angeles County, CA
Los Angeles County pre foreclosure listings increase just under 15 percent from quarter one to quarter two of 2010. The number of unique Notice of Default and Notice of Trustee sales increased from 24,320 to 27,881 in the second quarter of 2010. Of the 27,881 recordings in quarter two of 2010, 40 percent were Notice of Default, the initial stage of the foreclosure process, and 60 percent were Notice of Trustee Sales, which is the final stage in the foreclosure process. Residential properties in Los Angeles, including single family homes and condominiums, made up approximately 92 percent of the foreclosure filings. Multi-unit and apartment buildings consisted of approximately three percent of foreclosure filings. The remaining five percent were comprised of primarily commercial and industrial properties. Within the county of Los Angeles, the city of Los Angeles had the highest number of foreclosures with 4,986, followed by Long Beach with 1,266, Lancaster had 1,251, and Palmdale saw 1,176.

According to Bankaci:
“Short term market indicators are showing that median home prices will remain stable in the second quarter of 2010, however home inventories have been increasing in the second quarter of 2010. Default Research also expects to see some decreases in home values through 2010.”

Miami-Dade County, FL
Miami-Dade County mortgage foreclosure related Lis Pendens dropped 33 percent in quarter two of 2010. The number of unique mortgage foreclosure related Lis Pendens, which is the first stage in the foreclosure process in Florida, decreased from 5,029 in quarter one of 2010 to 3,359 in the quarter two of 2010. The city of Miami lead metro areas in South Florida with 1,602 Lis Pendens recorded, followed by Hialeah with 337, Homestead at 183, and Miami-Gardens totaled 150. Of these foreclosures, 95 percent were single family homes and condominiums. The remaining five percent were primarily made up of multi-unit, apartment buildings, and commercial properties.

According to Bankaci…
“Although there are declining foreclosure rates, and that is a good sign for the real estate market, the outlook for Miami is uncertain. Default Research has seen significant drops in new foreclosures across the state as new laws have been passed encouraging lenders to seek alternative means, such as short sales. However, median home prices continued to decline through most of 2010 with a significant surge in home inventories in quarter two of 2010.”

Maricopa County, AZ
The number of Notice of Trustee sales recorded in quarter two of 2010 indicated a drop of just under two percent in Maricopa County. In quarter one there were 13,849 unique Notice of Trustee Sales recorded while in quarter two the number reached 13,595. The city of Phoenix had the highest number of Notice of Trustee Sales in quarter two with 4,784, followed by Mesa with 1,346, and Glendale had 1,021. Of the 13,595 Notice of Trustee sales recorded, 97 percent were single family homes and condominiums. The remaining three percent were made up primarily of commercial properties, vacant land, and apartment buildings. Default Research has also started seeing more warehouse properties move into pre foreclosure.

According to Banakci…
“The short term outlook for the Phoenix region is one of skepticism. Short term forward indicators show that housing inventories have begun to increase again after a drop earlier this year. Median home prices have also dipped since the first time home buyer credit expired in April 2010. There is uncertainty in the Phoenix metro market and buyers are still being cautious.”

Since 2004, Default Research has abstracted and distributed millions of pre foreclosure records. As opposed to other companies, Default Research tracks pre foreclosure properties which have not sold at auction and the Default Research statistics track properties once in a 12 month period. In Arizona Default Research tracks Notice of Trustee sale listings, in California both Notice of Default and Notice of Trustee sale listings, in Florida Lis Pendens are collected, in Michigan Notice of Trustee Sale Publishing’s are tracked, and in Nevada both Notice of Default and Notice of Trustee Sales can be found through Default Research. Default Research reports pre foreclosure documents days after being recorded. More information about Default Research can be found at its Web site: http://www.defaultresearch.com.

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Josh Chernikoff
Default Research Inc
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