Absolute Capital Homes Responds to Rising Foreclosure Numbers
As the rate of completed foreclosures fluctuates, many in the real estate market are looking for signs that indicate an end to the recent housing crisis. Absolute Capital Homes, provides additional information on these market trends.
NEW YORK, NY, July 19, 2012
While the rate of foreclosures is closely watched by real estate analysts, some fear that fluctuating statistics offer little sign of improvement. A recent report from Reuters observes that while there were an additional 1,000 foreclosures in May 2012, up from the 62,000 reported in April 2012, numbers have still improved since last year. According to the article, the 63,000 reported complete foreclosures in May 2012 were down from a staggering 77,000 in May 2011. Despite these positive shifts, many in the market anticipate high numbers of foreclosures for months to come. Absolute Capital Homes, a real estate firm that invests in REO and pre-foreclosed properties, helps explain these trends in the market.Through its own inventory of properties, Absolute Capital Homes has paid close attention to foreclosure rates and the motivation behind them. Jonathan Dieguez of Absolute Capital Homes, LLC refers to a recent Standard & Poor's report and notes that "the time it would take for banks to purge all of this so-called 'shadow inventory' from the market shrunk to 47 months during the second quarter - a significant drop from the 52 months it estimated for the first quarter of this year."
According to Absolute Capital Homes, "shadow inventories" refer to the number of unlisted bank-owned homes, or REOs, that are not yet on the market. The firm notes that many of these REOs cause confusion on reported foreclosure statistics, as lenders typically release these properties at a pace that helps them recover as much financial loss as possible. While the number of foreclosures may be down from last year, Dieguez adds those reports indicate "that large financial lending institutions will need at least another four years to unload their toxic inventory debt through foreclosure sales, mortgage modifications, short sales and other measures."
As the article indicates, many of these foreclosures are concentrated in certain states; nearly half of the reported foreclosures were those completed in California, Florida, Michigan, Texas and Georgia. Absolute Capital Homes notes that such widespread instances of foreclosure is troubling to the entire country, but the completed work should encourage those involved in the recovery of the real estate market.
Reuters reports that since the financial crisis in 2008, 3.6 million foreclosures have been completed. Absolute Capital Homes notes that while these numbers are incredibly distressing to those involved in any step of the real estate process, there are many organizations that work to help recover properties and help families find affordable housing.
ABOUT:
Absolute Capital Homes is a privately-owned, fully integrated real estate investment firm, located in New York. The company also maintains offices across the East Coast. The company's chief aim is to generate attractive returns through investment in residential and commercial real estate, capitalizing on the rising inventory of distressed properties held by private and public financial institutions. Absolute Capital Homes purchases promising REO and pre-foreclosed properties that require rehabilitation, then partners with local contractors to perform essential repairs, and experienced realtors to list and sell them in a timely fashion.
Website: http://absolutecapitalhomes.org