Q3 Increase for Pre-Foreclosures & Short Sales

According to RealtyTrac’s ‘Q3 2012 U.S. Foreclosure & Short Sales Report, ™’ sales for both pre-foreclosures and short sales went up in the third quarter of this year.

The report shows that sales for pre-foreclosure properties rose in the third quarter by 22 percent over the second quarter sales figures. In addition, third quarter year-to-year pre-foreclosure sales also increased, and did so by an identical 22 percent. A pre-foreclosure is a property in default or scheduled for auction.

Pre-foreclosure properties sold at a discount of 27 percent, on average, during the third quarter. This was a 2 percent rise from the previous quarter where the discount averaged 25 percent. On a year-to-year basis this sales discount had jumped substantially over the 19 percent discount during the third quarter of 2011.

The RealtyTrac’s Q3 report reveals that short sales also increased in the third quarter of this year. Quarterly sales increased by 15 percent over the previous quarter, while year over year sales increased 17 percent. When looking at the over all residential market, short sales accounted for 22 percent of the total Q3 sales.

The data for short sales included both non-foreclosure and foreclosure properties, and, on average, these properties were sold at a discount of $94,896 below the loan amount.

Now in looking at Real Estate Owned (REO) properties, purchases for these rose 19 percent from the second quarter. However, these transactions were down a full 20 percent from the third quarter of 2011. REOs sold for 38 percent below the average price of non-foreclosure properties in the third quarter. This figure is up 33 percent from the previous quarter but down 39 percent on a year-to-year basis.

Combined sales of both REOs and pre-foreclosures were up 21 percent from the second quarter, but saw a 3 percent decrease over the third quarter of last year.

As far as overall foreclosure sales go the states with the highest share of foreclosure sales vs. all residential sales were Georgia with 38 percent, California at 36 percent, Arizona at 34 percent, Nevada at 31 percent and Florida with 26 percent.