2013 Short Sale Trends

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RealtyTrac Vice President Daren Blomquist gave this presentation at Short Sale Con in Las Vegas on March

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  • OK, to get us warmed up I’d like to do a quick poll of the room. How many of you have heard of RealtyTrac? Now, how many of you have subscribed to RealtyTrac? Good to know.
  • We also provide foreclosure data to myriad government agencies at the local, state and federal level. And when I say federal level I’m talking about the highest level possible, used in briefings provided to the president by his council of economic advisors. OK, enough name dropping. Although it’s fun the point of the last two slides is simply to show you that RealtyTrac data is trusted and credible. Now let’s move on to the meat of this presentation!
  • 2013 Short Sale Trends

    1. 1. 2013 SHORT SALE TRENDSWith Practical Steps to Finding Short Sale Listings
    2. 2. What we’ll cover today • What is RealtyTrac? • Where & Why Foreclosure Starts are Surging – Bonus: Best Short Sale Markets • How Short Sales Are Moving Further Upstream – Bonus: listed and unlisted foreclosure inventory – Bonus: zombie foreclosures • Practical Steps to Finding Short Sale Listings • Practical resources©RealtyTrac Inc. 2012, Not for Distribution 2
    3. 3. A BRIEF INTRODUCTION TO REALTYTRAC
    4. 4. WHAT REALTYTRAC IS • RealtyTrac publishes the country’s largest database of foreclosure and bank-owned properties – Data from over 2,200 counties, covering over 92% of U.S. housing units • #1 Foreclosure site – 1.5 million foreclosure and bank-owned properties nationwide – More coverage, more detailed information than any other national provider • Unmatched property evaluation and transactional tools – HomeScore, Equity & Loan Info, Comp Sales, Online Offers, Foreclosure-MLS Match, and much more©RealtyTrac Inc. 2012, Not for Distribution 4
    5. 5. WHAT REALTYTRAC IS NOT • The RealtyTrac foreclosure database is not an “MLS for foreclosure records” • Most of the properties in the RealtyTrac database are NOT on the MLS anywhere – Less than 20% of the homes in foreclosure are listed – Only 15% of REOs are listed – Many MLS organizations prohibit including any REO or foreclosure information in the property listings – RealtyTrac gives you advanced notice that it will likely be ‘For Sale’ in the near future.©RealtyTrac Inc. 2012, Not for Distribution 5
    6. 6. WHO RELIES ON REALTYTRAC DATA©RealtyTrac Inc. 2012, Not for Distribution 6
    7. 7. WHO RELIES ON REALTYTRAC DATA©RealtyTrac Inc. 2012, Not for Distribution 7
    8. 8. WHERE FORECLOSURE STARTS SURGING
    9. 9. The Big Picture©RealtyTrac Inc. 2013, Not for Distribution 9
    10. 10. NATIONAL TRENDS More than 10 million More than 10 million starts and nearly 55 starts and nearly million completions million completions (REO) since January (REO) since January 2006 2006©RealtyTrac Inc. 2013, Not for Distribution 10
    11. 11. NATIONAL TRENDS 66Percent Bump in Q2 Percent Bump in Q2 2012 corresponding 2012 corresponding with National with National Robo-signing controversy came Robo-signing controversy came Mortgage Settlement Mortgage Settlement to light in late 2010, to light in late 2010, accelerating downward trend accelerating downward trend©RealtyTrac Inc. 2013, Not for Distribution 11
    12. 12. STATES WITH BIG INCREASES©RealtyTrac Inc. 2013, Not for Distribution 12
    13. 13. METROS WITH INCREASES©RealtyTrac Inc. 2013, Not for Distribution 13
    14. 14. BOOMERANG FORECLOSURE STARTS©RealtyTrac Inc. 2013, Not for Distribution 14
    15. 15. SECOND BOOMERANG IN CALIFORNIA?©RealtyTrac Inc. 2013, Not for Distribution 15
    16. 16. WHY THE INCREASE • Many states coming off artificial lows from last year thanks to foreclosure processing delays. • Those delays were caused by a variety of issues that impacted some states more than others • Fallout from robo-signing (paperwork and documentation) • Intervention by the courts • Lack of court resources to handle foreclosure volume • Attorneys general investigation into five major lenders, with a settlement finally reached in April • Wave of recent legislation in non-judicial states©RealtyTrac Inc. 2013, Not for Distribution 16
    17. 17. Longer Foreclosure Timelines N.Y. N.Y. timeline timeline longest in longest in country country Texas is Texas is shortest in shortest in country country©RealtyTrac Inc. 2013, Not for Distribution 17
    18. 18. A Tale of Two Foreclosure Markets©RealtyTrac Inc. 2013, Not for Distribution 18
    19. 19. IMPLICATIONS • Home prices in some of these markets may break through a false bottom as these foreclosures are listed and sold in 2013. • More properties foreclosed (REO) in the next six to 12 months and more REO listed for sale in the next 12 to 18 months. • More distressed homeowners interested in listing their homes as short sales in the next six to 12 months in these markets.©RealtyTrac Inc. 2013, Not for Distribution 19
    20. 20. PRE-FORECLOSURE SALES ACTIVITY Increased 19 percent Increased 19 percent in Q3 2012 to highest in Q3 2012 to highest level since Q2 2010 level since Q2 2010©RealtyTrac Inc. 2013, Not for Distribution 20
    21. 21. PRE-FORECLOSURE SALES PRICES Average prices Average prices increase on annual increase on annual basis after 88 basis after consecutive quarters consecutive quarters of decreases of decreases©RealtyTrac Inc. 2013, Not for Distribution 21
    22. 22. OUTNUMBERING REO SALES Both hardest-hit sates Both hardest-hit sates like California, Florida like California, Florida and Arizona and Arizona And states with And states with longest foreclosure longest foreclosure processes like NY & NJ processes like NY & NJ©RealtyTrac Inc. 2013, Not for Distribution 22
    23. 23. OUTNUMBERING REO SALES©RealtyTrac Inc. 2013, Not for Distribution 23
    24. 24. THE BIGGEST SHORTS Banks are more willing Banks are more willing to take big losses with to take big losses with aashort sale short sale©RealtyTrac Inc. 2013, Not for Distribution 24
    25. 25. BEST MARKETS FOR SHORT SALES All markets had at least All markets had at least 200 short sales in 200 short sales in fourth quarter and fourth quarter and average time from average time from foreclosure start to sale foreclosure start to sale of less than one year. of less than one year.©RealtyTrac Inc. 2013, Not for Distribution 25
    26. 26. SHORT SALES MOVING FURTHER UPSTREAM
    27. 27. 2012 U.S. RESIDENTIAL SALES©RealtyTrac Inc. 2012, Not for Distribution 27
    28. 28. STATE TRENDS 26 states posted annual 26 states posted annual increases in non- increases in non- foreclosure short sales foreclosure short sales in 2012 in 2012©RealtyTrac Inc. 2012, Not for Distribution 28
    29. 29. METRO TRENDS Legislation forcing Legislation forcing lenders’ hands in lenders’ hands in metros like Las Vegas, metros like Las Vegas, Seattle and Portland Seattle and Portland©RealtyTrac Inc. 2013, Not for Distribution 29
    30. 30. POTENTIAL POOL OF SHORT SALES©RealtyTrac Inc. 2013, Not for Distribution 30
    31. 31. BUT A SHRINKING POOL Nationwide 1.6 million Nationwide 1.6 million fewer underwater than fewer underwater than aayear ago year ago©RealtyTrac Inc. 2013, Not for Distribution 31
    32. 32. LISTED PRE-FORECLOSURES DOWN With some notable With some notable exceptions mostly in exceptions mostly in judicial states judicial states©RealtyTrac Inc. 2013, Not for Distribution 32
    33. 33. MORE INVENTORY IN PIPELINE©RealtyTrac Inc. 2013, Not for Distribution 33
    34. 34. MORE POTENTIAL SHORT SALES?©RealtyTrac Inc. 2013, Not for Distribution 34
    35. 35. FINDING SHORT SALE LISTINGS
    36. 36. KNOW YOUR LOCAL MARKET TRENDS©RealtyTrac Inc. 2013, Not for Distribution 36
    37. 37. KNOW YOUR LOCAL MARKET TRENDS©RealtyTrac Inc. 2013, Not for Distribution 37
    38. 38. KNOW YOUR LOCAL MARKET TRENDS©RealtyTrac Inc. 2013, Not for Distribution 38
    39. 39. TARGET POTENTIAL SHORT SALES Filter by property Filter by property Filter by equity/LTV Filter by equity/LTV Filter by property Filter by property value and value and type type characteristics characteristics Filter by lender name Filter by lender name Filter by listing status Filter by listing status and auction date and auction date and bankruptcy status and bankruptcy status©RealtyTrac Inc. 2013, Not for Distribution 39
    40. 40. TARGET POTENTIAL SHORT SALES©RealtyTrac Inc. 2013, Not for Distribution 40
    41. 41. FILTER OUT REO AND FOR SALE©RealtyTrac Inc. 2013, Not for Distribution 41
    42. 42. SELECT PROPERTY TO VIEW DETAILS©RealtyTrac Inc. 2013, Not for Distribution 42
    43. 43. See Foreclosure See Foreclosure Details Details LTV and Equity LTV and Equity Outstanding loans Outstanding loans and position and position Owner contact info Owner contact info (including current (including current mailing address) and mailing address) and trustee and lender info trustee and lender info©RealtyTrac Inc. 2013, Not for Distribution 43
    44. 44. DOWNLOAD PROPERTY INFO©RealtyTrac Inc. 2013, Not for Distribution 44
    45. 45. DOWNLOAD IN BULK WITH MEGA©RealtyTrac Inc. 2013, Not for Distribution 45
    46. 46. REALTYTRAC RESOURCES • Local Stats & Trends (free and embeddable) • http://www.realtytrac.com/trendcenter/ • Real Estate News & Reports (free) • http://www.realtytrac.com/content • Professional subscription (address-level access) • http://www.realtytrac.com/professionals • Buyer leads (exclusive territories) • Call 800.306.5930©RealtyTrac Inc. 2012, Not for Distribution 46

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