Foreclosure sales drop

Originally Published by the Mobile Press Register

Link: http://www.al.com/business/press-register/insider.ssf?/base/business/1253438205105170.xml&coll=3


August decline in Mobile, Baldwin counties may signal improving market, says new report by USA real estate centerSunday,

September 20, 2009
By KATHY JUMPER Real Estate Editor

Foreclosure sales dropped in Mobile and Baldwin counties in August, a sign that the market may be improving, according to a new local report by the Center for Real Estate Studies.

"We look pretty good," said Don Epley, director of the center, which is housed in the University of South Alabama's Mitchell College of Business.

"The numbers peaked in April and have been decreasing since," he said. "We're seeing that the market has bot tomed out and we're seeing some indication that the market has turned back around."

There were 86 residential foreclosures in Mobile County in August compared with 110 in July; foreclosures fell in Baldwin County from 102 to 63.

Epley's new report compiles the foreclosure sale deeds recorded in the both county courthouses, he said. The decrease reflects that banks are getting smarter in handling foreclosures, and borrowers are having success working with lenders to prevent losing their homes, Epley and local Realtors said.

Nationally, the number of households threatened with foreclosure decreased by 1 percent in August from the month before, according to RealtyTrac-

. com. More than 358,000 foreclosure-related filings were recorded last month, including default notices, scheduled auctions and bank repossessions. That number is up 18 percent from August 2008, according to RealtyTrac.com.

"We're seeing a little less foreclosures," said Debbie Gautreaux of REMAX Partners in Mobile. "But we also saw the market pick up in August and September, and some homes are actually selling before going into foreclosure."

Gautreaux said that she tells clients to make sure they notify lenders quickly if they are going to be delinquent on payments. "Some lenders will help them refinance if they know ahead of time," Gautreaux said. "If they can't make the payments, they may have to resort to a short sale. It's not fun, but it can be done."

The problem in Mobile is that there are too many properties on the market, according to Epley. The Mobile area has enough homes that it would take 10cm HALF to 11 months to sell them, whereas the national inventory is at 9cm HALF to 10 months, he said. Still, that's an improvement over the 16-month inventory levels of a few months back, he added.