“We never had the amount of speculation here that there was in areas of NV,FL. Majority of the one unit wonder speculators have been gone for a while and are now on the block because they could never hold on.”

Really? Where did you get your data? Could you please share it so we can all see? Or, is this just wishful thinking on your part?

a foreclosed home “is” a reposessed home. HUD may refer to their foreclosures as HUD Repos. Banks may refer to their foreclosed homes as REOS (real estate owned.)

First the homeowner becomes delinquent on their mortgage.

A set period of time passes (depending on state law)

Then a Notice of Trustee Sale is filed.

Then another set period of time goes by (depending on state law).

If the owner does not bring the loan current, the bank then auctions off the home to the highest bidder at the Trustee Sale, which takes place on the couthouse steps. If there are no bidders, the home is deeded back to the bank. NOW the bank “owns” the real property and then it becomes an REO, or a REPO. If the loan was insured by FHA, FHA has the option of paying the insurance claim to the bank or taking on the home itself and then instead of a bank REO it becomes a HUD REO (or HUD repo.)

Hope that helps :)

Home prices are falling, foreclosures are rising, and the economy is deteriorating as we speak. This is not a recipe for a housing bottom. Prices will continue to decline because no one can secure financing without cash and a good job. All these current foreclosures will be entering the expanding inventory pool around the first of the year. Unemployment is climbing and will be moving higher in the months ahead.

All of the speculative activity around here is in the process of unwinding, and the end result won’t be pretty.

So owners prefer to stop making their payments in the winter? I didn’t think struggling home-owners were all that concerned about the season in which they decided to default. Then again, maybe it’s more pleasant to deal with moving when the weather is nice…

Actually, I bet they do. You’ve got Christmas shopping to get done and you overspend. Now you can’t pay your mortgage. I would not be shocked if the two correlated.

Foreclosures have been consistently increasing by huge margins for the last year or so. Up until now, the response was always “But they are still so low”. I think foreclosures have now reached an equilibrium of sorts and that if we continue to see such a rapid increase it will be felt quite strongly.

Its been on the market three times since 1999 and was vacant for over a year in 2004-2005, its vacant again, its been a year and evidently, the bank won’t lower the price enough to get it to sell.

I have a question to you bubble brains, why are foreclosed homes different than repossessed? In logic, both are abandonned with no mortgage payment. How many “foreclosed” homes become vacant rat traps and suddenly of the foreclosure statistics?

Is it like the unemployment statistics; it ignores “giveups”?

A unit in my neighborhood just sold for 2002 price. Just a comment. I am in the same pool like most that believe we won’t see anything close to FL, CA, AZ, NV numbers in WA. At least not because of speculation. If it happens, it will be because of economical collapse.

1200-1500 is about where they should be during a good period with the 1 in 2400-4000 we have been dealing with for a few years is just silly and a function of availability of credit and appreciation

The areas with the biggest hits had the most “master planned communities” and are pretty hard to compare well against the puget sound area. People I have talked to with access to paid regional data are looking at rent and foreclosure data for Tacoma to try and predict the greater puget sound market (Tacoma is / was at about 1 in 300 during part of the quarter and the zillow chart seems to show that area dropping about 10% in the same quarter)

That crispy commenter posted a link to a Marcus Milichap report for Phoenix to try and illistrate where rents are headed here, they have free reports available and have a very bullish report out for the next year for property managers in the seattle area looking for another 6-10% in rent increases.

http://www.marcusmillichap.com/

if there were no foreclosures, we’d probably follow the Japanese model of stagnant prices for decades instead of crashing prices for a few years.

seeing large numbers of foreclosures means rapid price declines are coming.

so, just how large are our foreclosure numbers?

on a per capita (or per 1000 household or whatever) basis do we have more or less foreclosures than San Diego did 12 months after prices peaked (or however many months it has been)?

Of course, Seattle is paradise in the summer, and thats why the best deals are desperate sellers in the winter. I’m still not seeing evidence that we are going to eat it anywhere near as hard as FL, NV, and CA. By the way, I looked up Mission Beach area and found one deal, La Jolla nothing, and Huntington Beach is still all 700k plus, so this RE collapse seems to be at the low end, and the very high end,
You can buy in Chula Vista and Tacoma, but so what? The best in Tacoma is still pricey.
Shoreline, WA is still 50% above where it was in 2002. I dont think of it as central top-tier, but many people like it, and there were lots of decent, but old houses for 200k in 1999-2002 that are now 300, maybe even 400k. It is not declining back to old levels, at least not yet.

Whoever you are, if you want to join the conversation, pick a single, non-suggestive name and you’re welcome to join us.

the owners would need to stop making their payments in late fall and early winter

So owners prefer to stop making their payments in the winter? I didn’t think struggling home-owners were all that concerned about the season in which they decided to default. Then again, maybe it’s more pleasant to deal with moving when the weather is nice…

Using that it would take 6 months for a home to go into foreclosure then the owners would need to stop making their payments in late fall and early winter.