Friday, March 18, 2011

The Truth about Foreclosure Sales

Many people believe that they can get a great deal on a foreclosure sale. They can! But not near what most people imagine. You won't get a home for half or less than what it's worth. The majority of the time, repairs will need to be done as most bank repos are sold 'as is' with no repairs. If you are a buyer with financing, it's even tougher to buy a foreclosed home (especially with Rural Development, FHA or VA financing). There are some gems that qualify, but cash buyers take on most of the foreclosed market.

Below is an article I came across that gives the reality of foreclosed sales in the U.S. They also provided stats on each state. Although I won't list all the states here, you can email if you'd like to see them.

LOUISIANA: Foreclosures made up 9.70% of sales (2,524) in 2010 That is a -4.36 decrease from 2009. The average sales price for a forclosed property was $131,574. The average discounted price is 25.15%.

RealtyTrac: 1 in 4 sales is a foreclosure
By Inman_News
Created 2011-02-23 21:00

Foreclosure sales accounted for 26 percent of U.S. home sales in 2010, with those properties selling for more than 28 percent less, on average, than homes not in the foreclosure process, data aggregator RealtyTrac said in its latest report .

A total of 831,574 U.S. residential properties either owned by banks or in some stage of foreclosure sold to third parties in 2010, a decrease of 31 percent from 2009 and a decrease of nearly 14 percent from 2008, RealtyTrac said.

Homes in foreclosure accounted for a larger percentage of sales in 2009 -- 29 percent -- but their share of total sales was up from 23 percent in 2008.

While controversy over loan servicers' handling of foreclosure paperwork put a dent in fourth quarter foreclosure sales, the impact of the so-called robo-signing controversy seemed to be waining in the final month of the year.

RealtyTrac recorded a total of 149,303 foreclosure sales in the fourth quarter, down 22 percent from the previous quarter and down 45 percent from the same period a year ago. That decline was in spite of a 21 percent monthly uptick in foreclosure sales volume in December.

"The catch-22 for 2011 is that while accelerating foreclosure sales will help clear the oversupply of distressed properties and return balance to the market in the long run, in the short term a high percentage of foreclosure sales will continue to weigh down home prices," said RealtyTrac CEO James Saccacio in a statement.

A total of 512,886 bank-owned (REO) properties sold to third parties in 2010 at an average discount of 36 percent, up from an average discount of 33 percent in 2009.

Another 318,688 pre-foreclosure properties -- homes in default or scheduled for auction -- sold to third parties in 2010 at an average discount of 15 percent, down from an average discount of nearly 17 percent in 2009.

February 2011 Market Analysis

The following is provided by Van Eaton & Romero. Information extracted from MLS sales in Acadiana.

The number of home sales increase 17.26% compared to February of 2010.

The average days on the market has increased by 8, bringing it to 120 days.

The average sales price is $161,633, which is a -3.06% decrease.

The average list to sold price ratio is 96.01%, which is a .7% decrease.

For a full report, email

Saturday, March 5, 2011

Tidbits on Mardi Gras

For those of you who are not from Southern Louisiana (or an area that celebrates Mardi Gras) first off, you must experience Mardi Gras if you haven't already. It is quite the spectacule. Of course, New Orleans is wild, crazy and fun! But Lafayette, in my opinion, is best for families.

Mardi Gras is French for "Fat Tuesday". Although widely celebrated by non-Catholics, it is a Roman Catholic tradition. It occurs every year on the Tuesday before Ash Wednesday (which kicks off Lent, a time of fasting/abstinence for spiritual cleansing and respect for Jesus' suffering on the cross, lasting until Easter) Typically occuring sometime in February or March, the turn of the new year usually kicks off with various Mardi Gras balls. The balls are in mock-wedding fashion with the court 'walking down the aisle' as they are presented. A King and Queen reins over the court. Tuxedo and Ball Gowns are worn by both court and guest. In order to attend, you must be invited by the organization putting on the ball.

But no invitation is needed for parades! Parades consists of floats sponsored by Krewes (organizations that puts on parades and/or balls) and business and marching bands from schools in the state. A variety of items are thrown from the parades to awaiting patrons but the most prominent is beaded necklaces. One might think it's silly to stand at the baracaded streets for hours in hopes of catching cheap plastic beads. And it is! But that's the point! The world is filled with heartache, disappointment, stress, hardship and all that can go wrong. We have responsibilities that make us all too serious the majority of the time. Mardi Gras is our time to be silly. It's a day when you can where whatever you want to can dress down, you can dress up or you can dress ridiculous. It doesn't matter, everyone's goal for the day is eat,drink and be merry......and collecting as many cheap plastic beads as you can! It is so exciting to feel the beads slide through your fingers and in the palm of your hand. Even more exciting if you can get the attention of a person riding on a float to throw you something 'special'. There is also a fair at Cajunfield in Lafayette with carnival rides and Downtown area has stages with bands. It is really a good time, for people of all ages. For those of you that live here but arean't really into Mardi Gras, least you get a day off!