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N.M. Ranks Low In Foreclosure Home Sales

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Copyright © 2012 Albuquerque Journal

One out of every 12 homes sold last year in New Mexico was somewhere in the foreclosure process, a comparatively healthy sign for the residential real estate market, according to Irvine, Calif.-based RealtyTrac.

Nationwide, almost one out of every four homes sold in 2011 was either a short sale or a bank-owned sale.

States where residential markets folded when the housing bubble burst are still seeing brisk trade in foreclosure homes, with Nevada at 54 percent of all sales, California at 43.5 percent and Georgia at 36 percent. At the low end was New York at 6 percent of all sales.

“We expect to see foreclosure-related sales increase in 2012, particularly pre-foreclosure sales, as lenders start to more aggressively dispose of distressed assets held up by the mortgage-servicing gridlock over the past 18 months,” said RealtyTrac CEO Brandon Moore in a prepared statement.

The gridlock stemmed from the so-called robo-signing scandal of late 2009, when a few major lenders acknowledged that they had been mass-producing foreclosure actions against homeowners.

The current trend among lenders or their mortgage-servicing companies is to approve pre-foreclosure short sales, where a home is sold for less than the amount of the outstanding mortgage. As short sales increase, the number of bank repossessions falls.

New Mexico’s 2,054 foreclosure-related home sales in 2011 were about the same as the previous year, but almost double the number in 2009, RealtyTrac reported. The average foreclosure sales price was $191,804, a discount of 14.7 percent off the average sales price of a non-foreclosure home.

Nationwide, foreclosure-related sales dropped slightly in 2011 from a year earlier and are down 13.7 percent from 2009. The average foreclosure sales price was $164,349 last year, a discount of 32.6 percent off the price of a non-foreclosure home.
— This article appeared on page B1 of the Albuquerque Journal

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