Atlanta Housing Source

We received the latest list of advertised foreclosures in the Barrow, Forsyth, Fulton, Gwinnett, Hall & Walton counties only. There were over 6,100 advertised foreclosures and that did not include the other 5 metro counties like Cobb, Paulding, Cherokee, Douglas, & Dekalb. We reported back in August what we thought was a record which was close to 5,000, so this month’s numbers are very shocking. 

What we found when we look at the list this month was a lot more commercial properties which is also unusual.  Even properties that are highly desirable and have tenants are being foreclosed. We read about the new shopping center in Norcross – The Forum, narrowly escaping foreclosure last month. In that article, it forecasted that there would be additional commercial up for foreclosure, but I had no idea that the amount of foreclosures would be this high. 

So what is going to happen with this additional inventory coming onto the market? You probably remember your economics 101 class – more supply, less demand equals lower prices. Just when you think it can’t get even lower, we find that there is a near 20% increase into an already bulging market. 

While this is a great opportunity for some, it is creating additional challenges for those who need to sell. Someone recently shared with me the concept that sellers are under “house arrest” because there is nothing that they can do to liquidate their home without taking a large loss in equity. Most homeowners are counting on their homes’ equity for retirement and with prices falling at an alarming rate, it is going to take a long time to recover from this loss. 

So what is the upside in this? The only thing we can share is that if you are in the market to purchase, there is no better time to buy. If you can put up with the challenges of working with banks, there is great money to be made. Banks are realizing that there are not enough qualified buyers for their homes, so relatively reasonable offers are being considered and whether you are purchasing to occupy or put into rental service, the discounts are amazing.

If you want to take advantage of this great market, make sure that you are working with an expert real estate agent that understands how to work with the banks to get your deal accepted. Also, because the market is shifting, you want to make sure that you are getting the best information possible about a home and area to make sure that you are able to make the best buying decision.

Want to be alerted to the newest foreclosures on the market? Contact us or complete a short form and we will send you the newest homes on the market.

The number of advertised foreclosures this month is 4957 for Hall County, Barrow County, Forsyth County, Fulton County, Gwinnett County, Hall County, and Walton County. This number does not even include Cobb County, Dekalb County, Paulding County, Cherokee County and Douglas County.

In July there were 4415 advertised foreclosures in those same counties that were scheduled for sale on August 4, 2009. Just how many actually foreclosed is yet to be determined. This month, however, we see that there is a 10% increase.

We have been tracking the foreclosure rates for those counties for years and never have we seen these kinds of numbers. Georgia is a non-judicial foreclosure state which basically means that after 4 weeks of advertising, the lender can foreclose on the property through a sale on the courthouse steps.

So what is going to happen with all of these homes that are now owned by the bank? They are going to try and sell them at greatly reduced prices. This can be good news or bad news depending on your situation. If you are a buyer, there has never been a better time to purchase a home. The incentives for first time homebuyers are really phenomenal. Have you heard about the $8,000 Federal and up to $1,800 State credits available? Learn more details.

However, if you are an existing home owner, you are seeing your property values drop like never before. Most people who bought in the past 10 years purchased houses with a first and a second mortgage. When the bank forecloses all junior liens are wiped out. Therefore the bank that performed the foreclosure has a house that already costs significantly less that other homes in the neighborhood that were bought around the same time.

For example a house that normally would cost $100,000 has a first mortgage of $80,000 and a second mortgage of $15,000. Typically the owner would have paid $5,000 for the down payment. So let’s say the owner has lived in the property for 3 years and now can’t make the payment. The first mortgage would foreclose and purchase the property at the steps for roughly $78,000. Let’s say it costs them $4,000 to actually foreclose. They then list the home for sale at $85,000. So the other homeowners in the neighborhood who need to sell are competing with the banks selling what would normally be a $100,000 house for $85,000. So they have lost $15,000 in equity.

In addition banks are now competing with each other since there are so many of them on the market these days, that they are lowering their prices even further just to move the house off their books and to take the loss.

So my point is that there is going to be even more choices for people who want to get some great deals and we can help you find a great deal. If you want to know more about the home buying process, come to one of seminars. If you want to search through the thousands of foreclosures in Atlanta, you can search for free. If you want us to search for a home for you to narrow down the search, you can speak with us directly by contacting us or calling 404.886.8789.

We appreciate the opportunity to serve you!

Today was the day banks went through the foreclosure process. At the beginning of the month, there were 3,678 foreclosures that were advertised for the foreclosure process in the metro Atlanta area and of those 1355 were in Gwinnett County alone. While we won’t know the numbers that actually were turned back into the bank, you can be sure that there were a lot. While I am sure several were held off by loan modifications and others may have been caught up either by the homeowner or by an investor taking the property subject to the existing mortgage, there are still a lot of properties that are going into the bank’s inventory.

With more and more bank owned properties coming into the market, sellers who are thinking about selling need to understand that bank owned or real estate owned (REO) properties are the new comparables. When we meet with seller’s some of the first questions we ask is – do you need to sell or want to sell. That is an important question to answer. We can sell homes – but we have position the home in such a way to compete with the REO market. For sellers that don’t need to sell, we are advising them to wait until the market balances out.

When thinking about selecting an agent to represent you with the sale of your property, you want to make sure that you find an agent who works the business full time. In today’s market, you need an agent’s full and undivided attention in order to get the best results. In addition, you will want to review the agent’s credentials. The individual agent will be more important than the real estate company. If you want more tips on selling your home or want a competitive marketing analysis, you can contact us at www.AtlantaHousingSource.com.