Foreclosures | What is going on with foreclosure filings in the Carolinas?
The national foreclosure filing numbers are out and the news is decent given the situation. The number of foreclosure filing has dropped nationwide by 5.14%over the period of the first six months of 2010 compared to the last six months of 2009. These numbers were given by CNNMoney. The report also notes that 1 in 78 houses is still in danger of foreclosure. The three states that lead the nation in foreclosure filings are Nevada, Arizona, and Florida.
The Carolinas are experiencing a different trend. The number of foreclosure filings over the same period ot time grew by 10% in North Carolina and by 21% in South Carolina. Even with these increases the Carolinas' foreclosure rates are still a good bit below the national average. (For the second quarter of 2010, North Carolina ranked #32 in the number of foreclosures)
WHAT HAS CAUSED THE FORECLOSURE FILING INCREASE IN THE CAROLINAS?
Analysts believe that number of foreclosure filings is still on the rise in the Carolinas because North and South Carolina are two very popular states for second homes.
Low mortgage rates will continue to help to incent investors and home owners to buy up the foreclosures in today's market. We are expecting to continue to see a large number of foreclosures nationwide.
Another reason that the national foreclosure filings has decreased is because more banks are becoming more willing to allow a short sale. Banks will often be willing to short sale the property to avoid paying the high cost of foreclosing on the property.
Steve Harney, a well respected real estate speaker, told our office a few months ago that he is predicting 5-8 million more foreclosure filings in the near future.
We will experience more downward pressure on list prices as long as there are a high number of foreclosures in the area.
