We recently reported Dane County foreclosures decreased in January - the first time foreclosures have fallen in 34 months. Is this the beginning of a new trend? Barry Ritholz from http://www.ritholz.com/ does not think so. Ritholz and others predict a huge wave of new foreclosures is just around the corner. You can read more here.
Dan Miller, Realtor, Keller Williams Realty and DaneCountyMarket.com
For the first time in 34 months, Dane County foreclosures have decreased. A total of 127 foreclosures were filed in January, compared to 154 a year ago.
For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com .
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
The Northern Bay Condos on Castle Rock Lake have a number of bank-owned units on the market, and by and large these units are priced hundreds of thousands of dollars below prices from just a few years ago. Recent re-sales at Northern Bay have gone for more than $200,000 below the original selling price.
This link includes a list of bank-owned Northern Bay condos. Buyers are reacting positively to current price points, as several Northern Bay units have accepted offers right now.
Have a great day,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
As of this post, our quick search of Sun Prairie foreclosures shows 25 bank-owned condos for sale in Sun Prairie - all of them listed for less than $200,000.
Now our quick search tools on the property search menu at DaneCountyMarket.com make it easy to find bank-owned and short sale properties in 13 different Dane County communities.
Have a good weekend,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
You can create your own custom foreclosure search at DaneCountyMarket.com.
And now you can run foreclosure quick searches by city for single family home, condo and multifamily real estate. The searches cover both bank-owned and short sale properties.
For example, the city of Madison has 6 different foreclosure quick searches:
So far our foreclosure quick search includes the cities of Madison, Cottage Grove, DeForest, Fitchburg, McFarland, Middleton and Monona. Soon we'll be adding quick searches for Mount Horeb, Oregon, Stoughton, Sun Prairie, Verona and Waunakee.
You'll find our foreclosure quick search on the property search menu at DaneCountyMarket.com.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Approximately 23% of the home and condo sales in Dane County are related to foreclosure, according to the Distressed Property Index we developed a few months ago. The December index decreased from November's index value of 24%.
For more details, please visit our monthly update at DaneCountyMarket.com .
Have a good day,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Dane County foreclosures increased for the 33rd straight month in December. A total of 117 foreclosures were logged in December, an increase of 14% from the 103 foreclosures recorded in December of 2008.
Foreclosures ended the year up 29%. From the graph below you see foreclosures increased for the fifth straight year in 2009. 
For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com .
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Approximately 24% of the home and condo sales in Dane County are related to foreclosure, according to the Distressed Property Index we developed earlier this year. The November index decreased slightly from the index level in October.
The November index decreased because home and condo sales have been increasing at a faster rate than foreclosures. We don't believe this is a start of a long-term trend - and for two reasons. First, the recent rise in home and condo sales is due in large part to the home buyer tax credits. Second, some lenders have been implementing foreclosure moratoriums. Both of these are temporary measures. We expect the index to remain above . 2 for at least the next 6 to 12 months.
Have a good one,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Foreclosures were up again in Dane County, increasing from 127 in November of 2008 to 157 last month. November marked the 32nd straight month of year-over-year foreclosure increases in Dane County.
For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com .
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
We recently wrote about 4 brothers who are using their cash to invest in multifamily real estate - a long term approach to real estate investing. Other investors are using their cash in a different way.
We're working with one local investor group that has amassed a large sum of money for short-term real estate investment. The investor group uses its cash to buy distressed properties, which are then rehabbed and sold for a profit. Because this group pays cash for its investments, it can close on a property in a matter of a few days once an offer is accepted. This makes this buyer a good fit for the distressed property owner who needs to unload a property quickly - and without any worry of the deal falling apart due to a financing or inspection contingency.
We're also talking to an out of state investor group about its goals. This group has successfully implemented an investing system in several different markets around the country. In each market, the group uses its cash to buy 3 to 10 properties a month. Similar to above, these properties are rehabbed and then sold for a profit.
The advantage of the buy, fix and flip approach mentioned above is the investor receives a return on his investment in a matter of just a few months. In fact the investor can re-invest his money several times throughout the year for a very nice profit.
The disadvantage is there is more risk. These investors mitigate their risk by having clear standards. They focus on starter homes, where there is a relatively strong demand for the supply that is on the market. They "buy right" (ie at a good price), which gives them some cushion in case something unexpected pops up during the rehab process. They also develop detailed and realistic plans around the acquisition, rehab and resale of their investments, so they can reasonably estimate their returns.
We expect to see more and more short-term investors due to the growing number of foreclosures in Dane County. Even when foreclosures start to subside, distressed properties will continue to play a large role in the market for years to come. Keep in mind foreclosure levels right now are several times higher than they were just a few years ago. Also, it typically takes 6 to 18 months for a foreclosed home to work its way onto the open market. The irony is the number of distressed properties will continue to increase even as the number of foreclosure filings begins to subside.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
We recently wrote about two duplexes that are worth a look from investors who are seeking to cash flow multifamily properties. Below are two other intriguing properties, one a home and the other a condo.
This 3 bedroom home at 125 N. 5th Street in Madison is priced at $94,900 and almost $60,000 under assessment.
This large 3 bedroom condo at 619 Wood Violet Lane in Sun Prairie is priced at $110,000 and over $69,000 under assessment.
Both of these properties are lender-owned. And both require some work, so they're a good fit for someone who is willing to invest some sweat equity in order to improve the value of their investment.
There are plenty of properties like these on the market right now. And there will be plenty more coming down the pike as more and more foreclosures work their way through the system and onto the open market.
One of the ways we learn about properties like these is by implementing a key word search of the MLS which sends us an email whenever a listing with one of the key words hits the market (or when an existing listing with a key word match undergoes a price reduction). For example, we have this search currently set up for an investor:
"forecl*, *as is*, *bank*, *corp*, *fixer*, *flip*, *investor*, *lend*, *lien*, *reo*, *short sale*, *subj*,* tlc*"
We'll discuss how this investor is leveraging the market in a future post.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
The Dane County Distressed Property Index rose slightly in October to .24, indicating approximately 24% of the home and condos sales in October were related to foreclosure. The chart below shows the index has quadrupled since January of 2006.
On a related note, the Mortgage Bankers Association announced today in its National Delinquency Survey that 14.41% of all loans were either in foreclosure or at least one payment past due at the end of the third quarter 2009. That's a new record.
With a rising number of distressed properties and lower prices, we're seeing a lot of interest from buyers who might not otherwise be in the market. This includes home shoppers, and investors, too. In the last several months we've met multiple buyers who have been saving their cash for the right moment to jump in. And many of them are jumping in right now.
Soon we'll share some stories of different buyers and how they are leveraging the market.
Have a good Friday,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
A total of 154 Dane County foreclosures were filed in October, up 1.3% from the 152 foreclosures filed in October of 2008. Although only up slightly from last year's total, this October's number represents the third highest monthly total dating back to October of 2008.
For our full foreclosure report, you can check out the economic trends page at DaneCountyMarket.com .
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
This web site - DaneCountyShortSales.com - has a list of useful resources. It also includes basic information about the short sale process, as well as information on how we've structured our real estate team to assist our short sale clients.
You won't find any heavy spin on the site. We've done our best to lay out the information in a concise and straight forward matter. Also, we don't force users of our site to give up their contact info in order to view our information.
Have a good day,
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Approximately 24% of the home and condo sales in Dane County are related to foreclosure. This is according to a new measure - the distressed property index - that we've developed along with Peter Zarov from Homestead Title. The graph below shows how the index has grown by almost 5 times since January of 2006.
Dane County foreclosures jumped from 101 in September of 2008 to 184 last month - an increase of 82%. The 184 foreclosures last month set a new record for Dane County. Here's how foreclosures have been trending since January of 2005.
Our real estate team is assembling a group of short sale experts to assist our clients who need to sell before the lender takes possession. Our goal is to involve the right experts at the right time to ensure our clients get their homes sold.
First, we have a team of three Realtors who have achieved Certified Distressed Property Expert designation. The three of us work together to effectively price and market our listings. We also ensure our clients have the right paperwork in place for the proposal packet that is submitted to the lender.
Second, we have enlisted the services of short sale facilitators who assist in submitting the short sale packet and work with the lender once the packet has been submitted. Our short sale facilitators come from Homestead Title. The Homestead Title team works with the lender to keep the sale moving forward. If issues arise during the approval process, our facilitators work to get them addressed quickly. And, Homestead Title will ensure that there are no 11th hour surprises and that all lien holders are identified early in the process.
Third, we provide our short sale clients with the services of an attorney of their choice. The attorney's job is to protect our client's best interests as we facilitate the sale with the lender.
Soon we'll be launching a web site designed for people who are in danger of losing their home to foreclosure. More on that coming soon.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Although the month of September is not in the books yet, foreclosure filings in Dane County will reach a new high this month. Keep in mind that most foreclosure filings result in either a short sale or a sheriff's sale, many of which do not occur until 6 to 18 months after the filing. Expect distressed property sales to become a large and growing part of the real estate market over the coming year.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Short sales have been in the news a lot lately, and by now we've all read and heard stories about many short sales failing. Here are some reasons why many short sales do not succeed:
Improper pricing. First and foremost, a short sale needs a willing buyer and an accepted offer. A short sale property needs to be priced to sell, without giving away the farm.
An incomplete or improperly submitted proposal package. Once an offer is accepted, the seller needs to submit a proposal package to the lender for its review. The proposal package includes multiple documents and dozens of pages. If the package is incomplete or improperly submitted, it can delay the approval process and cause the sale to run out of time before the sheriff's sale. An experienced Realtor is essential to avoid these mistakes.
Inadequate follow-up. Once the proposal package is submitted effective communication with the lender is critical. If the listing team is not proactively communicating with the lender and helping to move the short sale through the approval process, delays can occur, causing the seller to run out of time or the buyer to walk away from the transaction.
Failure to negotiate all liens. A successful short sale requires that all debts that are liens against the property are satisfied. This requires the agreement of each and every creditor/lien holder and usually requires at least partial payment of the debt. Failure to identify which liens to negotiate can derail a short sale at the 11th hour.
Thanks to Peter Zarov from Homestead Title for his contributions to this post.
In a future post we'll share how our real estate team is addressing the pitfalls listed above.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
Lenders are in the business of finance, not real estate. They're not designed to own a portfolio of properties. There are many good reasons why a bank will accept a short sale over foreclosure. Here are just a few:
Legal fees. Foreclosure requires attorney fees that can be avoided through a short sale.
The declining market. In a declining market, a property loses value for every month it does not sell. A short sale allows a property to be sold more quickly and at a higher market value.
Holding costs. Holding costs for lender-owned properties add up quickly. These costs include taxes, insurance, utilities, maintenance, management, and other costs.
Repairs. In some cases lenders end up owning properties that are in need of significant maintenance and repair. Some owners who are losing their home to foreclosure neglect or intentionally damage their home.
There are many good reasons for lenders to choose a short sale over foreclosure. Despite these reasons, many short sales are not successful and end with the lender owning the property. We'll cover some reasons why in a future post.
Dan Miller, Realtor, Certified Distressed Property Expert, Keller Williams Realty and DaneCountyMarket.com
