Real estate agents should be gearing up for short sales in the coming weeks, as the number of foreclosed houses rose in May by 2 percent amidst an 11 percent rise in bank repossessions, according to RealtyTrac's most recent U.S. Foreclosure Market Report.
While bank repossessions were down 29 percent from May of last year, there was an uptick of 11 percent from April, and the increase was felt in 33 states with REO activity increasing the most in North Carolina by 60 percent. Foreclosure starts increased by 4 percent nationally during the same time span, according to the study.
"Foreclosure activity continued to bounce back in some markets where it may have appeared the foreclosure problem had been knocked out by an aggressive combination of foreclosure prevention efforts over the past two years," said Darren Blomquist, vice president of RealtyTrac. "Still, the emerging housing recover has strengthened most local markets enough to quickly shake off a few more blows from these nagging foreclosures."
Florida in particular will be striving to bounce back over the next few months, as the state led national foreclosure activity in May after a 20 increase from April, the source noted. However, the amount of foreclosure activity is down by 17 percent from May of 2012.
For 20 of the major metros areas in the U.S., the most significant upticks in median home prices looked to be, for the most part, in states in which a non-judicial foreclosure process had allowed the homes to be put on the market more quickly, according to the report.
Realtors provide relief in the short sale
While an increase of homes are experiencing foreclosure, homeowners can rely on dependable and hardworking real estate agents to complete the short sale. Given current trends and the optimism of experts that the markets in these regions will catch up to the rest of the nation in the near future, Realtors can expect to see many of the people they helped with short sales return to them as buyers.
The role of Realtors in the short sale was the theme of HousingWire's Real Estate Expo earlier in June. Kyle Whissel, owner of Whissel Realty, describe real estate agents as "lifesavers" to the sellers for their help in getting the sellers out of a tight spot.