Hampton Roads foreclosures drop from year ago

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By Josh Brown
The Virginian-Pilot
© January 13, 2011

Either the foreclosure problem in Hampton Roads has reached a turning point - or some lenders took a holiday last month.

The number of foreclosure auctions and repossessions in the region fell to 1,004 in December, down 13.6 percent from November and 16.3 percent from the 1,200 reported a year earlier, according to RealtyTrac, a foreclosure-monitoring service based in Irvine, Calif.

It was the first time since RealtyTrac began collecting foreclosure data in 2005 that the number of foreclosures in Hampton Roads has declined year-over-year, suggesting that the problem might be easing.

However, another factor might be behind the decline. In recent months, Bank of America, along with several of the country's largest mortgage companies, suspended foreclosure proceedings in some states after questions were raised about how the institutions had handled foreclosure paperwork. The foreclosure moratorium was initially limited to the 23 states that require court approval to repossess homes.

Bank of America eventually extended it to all 50 states, including Virginia and North Carolina. The bank announced in early December it would resume foreclosing on properties across the country.

"Since a number of the banks have pulled back in the wake of the document scandal, I'd be hesitant to conclude we have something really important going on now," said James Koch, an economist at Old Dominion University. "They may just not be moving ahead."

The decline in foreclosure activity was reflected across the country, where foreclosures declined 4 percent in December from the previous month and 35 percent from December 2009, according to the report.

Foreclosures fell in every major Hampton Roads city except for Hampton and Virginia Beach. Hampton also was the only city that had an increase in foreclosures from the previous year.

"It certainly would be good news if the number of foreclosures diminished - good for the housing market and good for the economy," Koch said. "But it's hard to say. I'd want to see more months of this to reach any conclusion."

He said the other economic data don't suggest the economy has improved all that much. "We really need regional economic improvement to see a significant improvement in foreclosures," he said.

Josh Brown, (757) 446-2318, josh.brown@pilotonline.com

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Not bad...

Submitted by Greenbrier on Thu, 01/13/2011 at 1:44 pm.

I realize it is difficult for many to differentiate politics from economics but bear with me...
The DJIA is up 85% from it's March 2009 Low. VA unemployment is not far from the normal 5.5-6.5%....factor in a small percentage of those receiving unemployment ins that are not motivated to look for work to that equation...even better.
HOWEVER, the data on the forclosure freeze, no dubt had an effect on declining rates....unfortunatly, from what I've read, this is the calm before the numbers. Tha banks are going to strike back with a furry, stay tuned. The good news might be, 5% APR and low prices are an excellent time to buy if you wish to buy and hold for 20+ years. Rates will go through the roof at some point.

Rates will go through the roof

Submitted by Daoine on Sat, 01/15/2011 at 10:27 pm.

Agreed, at some point-but only if they don't stop QE 2,3,4..the bailouts which I see they will not do anytime soon. I tend to agree with many non MSN economists that have not seen any suggestion the FED wishes to curb QE, bailouts or the crap they spew from the WH & FED Holy pulpits. The bond market will go first, then inevitable inflation.Who would want US Bonds besides the Fed and total out of touch losers?
Kind of makes you wanna go out and buy something huh?

Spiking foreclosures

Submitted by stevenm on Thu, 01/13/2011 at 9:48 am.

They may have slowed but this year they are expected to spike at an even higher rate. Good luck to everyone living on the edge. With cutbacks, shutdowns and other financial decisions being made in the area for both business and government we will be seeing more. Always be prepared to start anew, plan now for the uncertainty that lays ahead.

From The 2nd Great Depression Comes The 2nd Great Dust Bowl

Submitted by NO JONES on Thu, 01/13/2011 at 8:47 am.

1200 more families looking for rentals from $1100 to $2400 per month and whether foreclosure or short sale the lender always sends a bill to the former homeowner for the difference owed about a year or so later when bankruptcy protecton will really be needed. It will be years before they can even get back into the mortgage application pool or better yet move on to many rural areas of America where $20,000 or $30,000 cash buys the entire property and never use credit again. Your 401K cannot be touched at all by any creditor! Suffolk had homes in downtown back in 2001-2002 for $15,000-$35,000. Currently owners are asking $165,000 to $225,000 for these four-square hundred year old homes.

Fannie Mae

Submitted by self ed.opine on Thu, 01/13/2011 at 4:17 am.

My rented duplex foreclosed five days ago and is now Fannie Mae owned.

Initial contact with a soliciting realtor (new manager) led me to believe I would be vacating the property and would be given $500.OO compensation. They were mute on any rental options till I called them back after contacting Fannie. They then told me it would be contingent on both renting parties agreeing to stay. Called Fannie back and they said that just one renter could sign a years lease and the property would not be put for sale.

Still haven't got to the bottom of it yet, but it appears Mrs. Mae is possibly keeping my butt out of a sling.
Being out of work, it has just occured to me that most properties will want to see my pay stub as much as any credit report.

Ah, Wow

Submitted by Greenbrier on Thu, 01/13/2011 at 5:00 pm.

Wow Ed, I'm really sorry to hear that news!! I've seen that happen a few times...it's never pretty. As for the pay stub thing, Landlords will want to see Proof of income, meaning disability, SSI, SSA,unemployment, etc. If yo have none of those, you may want to look for a private owner that is renting a place, explain your situation and how you intend to pay (if you have good credit, print out a report and bring with you), more than likely they'll work with you. Ya, might just want to drive around and look for signs first, then craigslist, etc. Hey man, good luck on that!

Thanks

Submitted by self ed.opine on Thu, 01/13/2011 at 7:39 pm.

for the input Greenbrier, your pointers were well taken.

One month statistics mean nothing.

Submitted by donvabeach on Thu, 01/13/2011 at 2:50 am.

Having said that, here's the national headline on the same subject:

"In December, U.S. foreclosure filings were off 26% from December 2009, RealtyTrac reports today."

So, if the USA was off 26%, and Hampton Roads was only off 16%, that means that we in Hampton Roads are doing lousier than the national averages.

Like I said.....one month statistics....worthless.

The real estate market is in the toilet....all that remains to happen is for it to get flushed down the drain.

Saved from the brink of depression

Submitted by hurdboy on Thu, 01/13/2011 at 9:58 am.

That's the mantra. Getting the market back to equilibrium isn't at all a goal in government right now. If RE stays stagnant, or declines slowly, that's fine with DC. Good news for the folks who make their money from Realtors, bad news for anyone who bought a house from 2002-2008.