Naples Foreclosures in 2010
Posted by Tim Ryan on Friday, December 31st, 2010 at 4:44pm.Surprisingly, the number of Naples foreclosures that sold in 2010 was LESS than in 2009.
2010 Closed REOs - 1798
2009 Closed REOs - 1930
This is surprising because the total number of Naples real estate transactions is up for the fourth year in a row. This is great news if you already own real estate in Naples. It is clear that there is not an endless supply of new foreclosures coming on the market. As the new REOs get absorbed, the value of Naples homes and Naples condos will likely start to increase.
The biggest question is why were there less foreclosures sold in 2010 versus 2009? I think you can argue three different points.
Freeze on New Foreclosures - Some banks had a moratorium on initiating new foreclosures. There was some bad press about how the bank executives were rubber stamping the foreclosures without reading the documents thoroughly. The halt certainly held back many of these auctions. However, this may have allowed for the needed time for the two parties to negotiate a short sale or come to an agreement on a modification. No question that slowing the evection process down will eliminate some percentage of foreclosures.
Increase in Successful Short Sales - This is the biggest difference over the last two years. The short sale market came out of nowhere. Lenders just did not know how nor had the staff to process new requests and offers. That was settled to some degree in 2010 and will likely improve more in the coming years. There was a 48% increase in the total number of short sales in 2010 vs 2009.
Foreclosures Have Slowed - If this is a valid point then it is the best evidence that the bottom of the market has already come and gone (and I happen to think that this si true). I don't believe that the banks are holding back foreclosures and I don't believe that in Naples there will be another HUGE wave of foreclosures. I believe that a good portion of homes that were purchased in the peak with existing mortgages will be foreclosed on.
I just do not know how many foreclosures are in the pipeline but I will tell you that it is NOT endless. Even a perception that the numbers are starting to dwindle will lead to a last minute buying frenzy.
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