Short Sales & Foreclosures - Upcoming Waves?

According to RealtyTrac, foreclosure filings were down 3% in October, the third consecutive month-over-month dip.  Foreclosure rates are still up 18% compared with October 2008, but the month-over-month decrease followed a 4% drop in filings during September and a 1% fall in August.  “Three consecutive monthly declines is unprecedented for our report, and, on first blush, an indication that the foreclosure tide may be turning,” said James Saccacio, RealtyTrac’s CEO, in a prepared statement.  “The fundamental forces driving foreclosure activity in this housing downturn — high-risk mortgages, negative equity, and unemployment — continue to loom over any nascent recovery,” he said. “And despite all the efforts and resources directed at helping homeowners avoid foreclosure, we continue to see foreclosure activity levels that are substantially higher than a year ago in most states.” 

Most gurus and experts believe that shadow inventory is building up with the lenders and that Alt-A and specifically Option ARM mortgages set to adjust and recast thru 2011 will result in foreclosure filings at least at the current level thru 2011.  I have mortgage statistics for Alt-A and Option ARM's that definately indicate a continuation of foreclosures and short sales likely thru 2011, with waves likely in mid 2010 and mid and lat 2012.  The moral of the story – keep current on trends, get educated, and build your team for Short Sale and REO opportunities!

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