Defaults, Bank Repossessions and Auctions Surge
So far in 2008, default notices have risen nearly 60 percent, bank repossessions have surged 129 percent, and auction notices rose 32 percent over the same period in 2008, according to RealtyTrac.
Lenders Cut Deals to Avoid Public Auctions
These data suggest that an increasing number of defaulting homeowners are throwing in the towel and deeding their properties back to the foreclosing lenders. A potential advantage to this strategy is that the deed-in-lieu-of-foreclosure process allows the lender to take possession of a property without offering it at a public foreclosure auction.
Bank Repossessions Shatter Charts
The year-over-year increase in bank repossessions reported by RealtyTrac are even more staggering on a state-by-state basis:
- Arizona: 619 percent,
- New York: 597 percent,
- California: 557 percent, and
- Florida: 464 percent.
Far From Over
In its March report, RealtyTrac predicts that the current trend towards property foreclosures , repossessions and public auctions is far from reaching its peak. Though at this point, predicting a turnaround could be riskier than betting the house on a sub-prime mortgage.
Tags: , deed-in-lieu-of-foreclosure, public foreclosure auction, RealtyTrac