2013 Short Sale Trends
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Transcript of 2013 Short Sale Trends
2013 SHORT SALE TRENDS
With Practical Steps to Finding Short Sale Listings
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
A BRIEF INTRODUCTION TO REALTYTRAC
• 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
WHAT REALTYTRAC IS
©RealtyTrac Inc. 2012, Not for Distribution 4
• 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.
WHAT REALTYTRAC IS NOT
©RealtyTrac Inc. 2012, Not for Distribution 5
WHO RELIES ON REALTYTRAC DATA
©RealtyTrac Inc. 2012, Not for Distribution 6
WHO RELIES ON REALTYTRAC DATA
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WHERE FORECLOSURE STARTS SURGING
The Big Picture
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NATIONAL TRENDS
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More than 10 million starts and nearly 5
million completions (REO) since January
2006
More than 10 million starts and nearly 5
million completions (REO) since January
2006
NATIONAL TRENDS
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6 Percent Bump in Q2 2012 corresponding
with National Mortgage Settlement
6 Percent Bump in Q2 2012 corresponding
with National Mortgage SettlementRobo-signing controversy came
to light in late 2010, accelerating downward trend
Robo-signing controversy came to light in late 2010,
accelerating downward trend
STATES WITH BIG INCREASES
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METROS WITH INCREASES
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BOOMERANG FORECLOSURE STARTS
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SECOND BOOMERANG IN CALIFORNIA?
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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
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Longer Foreclosure Timelines
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Texas is shortest in
country
Texas is shortest in
country
N.Y. timeline
longest in country
N.Y. timeline
longest in country
A Tale of Two Foreclosure Markets
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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.
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PRE-FORECLOSURE SALES ACTIVITY
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Increased 19 percent in Q3 2012 to highest level since Q2 2010
Increased 19 percent in Q3 2012 to highest level since Q2 2010
PRE-FORECLOSURE SALES PRICES
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Average prices increase on annual
basis after 8 consecutive quarters
of decreases
Average prices increase on annual
basis after 8 consecutive quarters
of decreases
OUTNUMBERING REO SALES
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Both hardest-hit sates like California, Florida
and Arizona
Both hardest-hit sates like California, Florida
and Arizona
And states with longest foreclosure
processes like NY & NJ
And states with longest foreclosure
processes like NY & NJ
OUTNUMBERING REO SALES
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THE BIGGEST SHORTS
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Banks are more willing to take big losses with
a short sale
Banks are more willing to take big losses with
a short sale
BEST MARKETS FOR SHORT SALES
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All markets had at least 200 short sales in
fourth quarter and average time from
foreclosure start to sale of less than one year.
All markets had at least 200 short sales in
fourth quarter and average time from
foreclosure start to sale of less than one year.
SHORT SALES MOVING FURTHER UPSTREAM
2012 U.S. RESIDENTIAL SALES
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STATE TRENDS
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26 states posted annual increases in non-
foreclosure short sales in 2012
26 states posted annual increases in non-
foreclosure short sales in 2012
METRO TRENDS
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Legislation forcing lenders’ hands in
metros like Las Vegas, Seattle and Portland
Legislation forcing lenders’ hands in
metros like Las Vegas, Seattle and Portland
POTENTIAL POOL OF SHORT SALES
30©RealtyTrac Inc. 2013, Not for Distribution
BUT A SHRINKING POOL
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Nationwide 1.6 million fewer underwater than
a year ago
Nationwide 1.6 million fewer underwater than
a year ago
LISTED PRE-FORECLOSURES DOWN
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With some notable exceptions mostly in
judicial states
With some notable exceptions mostly in
judicial states
MORE INVENTORY IN PIPELINE
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MORE POTENTIAL SHORT SALES?
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FINDING SHORT SALE LISTINGS
KNOW YOUR LOCAL MARKET TRENDS
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KNOW YOUR LOCAL MARKET TRENDS
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KNOW YOUR LOCAL MARKET TRENDS
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TARGET POTENTIAL SHORT SALES
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Filter by property value and
characteristics
Filter by property value and
characteristics
Filter by property type
Filter by property type
Filter by equity/LTVFilter by equity/LTV
Filter by lender name and auction date
Filter by lender name and auction date
Filter by listing status and bankruptcy statusFilter by listing status and bankruptcy status
TARGET POTENTIAL SHORT SALES
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FILTER OUT REO AND FOR SALE
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SELECT PROPERTY TO VIEW DETAILS
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©RealtyTrac Inc. 2013, Not for Distribution 43
See Foreclosure Details
See Foreclosure Details
LTV and EquityLTV and Equity
Outstanding loans and position
Outstanding loans and position
Owner contact info (including current
mailing address) and trustee and lender info
Owner contact info (including current
mailing address) and trustee and lender info
DOWNLOAD PROPERTY INFO
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DOWNLOAD IN BULK WITH MEGA
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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
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