U.S. foreclosures drop to 9-year low

• “Even distressed property sellers are benefitting from this hot seller’s market, with a record-high share of homes at foreclosureauction being purchased by third-party buyers rather than reverting back to the foreclosing bank.” While foreclosures were generally down, the share sold to third-party investors hit a record high, however: Third-party foreclosure-auction buyers accounted for 28.5 percent of all completed auctions in 2016, with the rest (71.5 percent) going back to the foreclosing lender.
• “Our analysis of sales prices at completed foreclosure auctions in 2016 shows the smallest average loss from the property’s previous sale price since 2007, with 29 percent of properties nationwide selling for more than the previous sales price at the foreclosure auction,” he says.
• “In a handful of markets … more than 50 percent of properties sold at foreclosure auctions in 2016 sold for more than their previous sale price.” In a separate analysis of home prices, ATTOM found that 89 percent of metro areas it tracked saw home prices increases last year, and a few areas saw double-digit increases, including some Florida cities.
• Foreclosure auction sales (trustee’s sales or sheriff’s sales) sold to third-party investors (not including those going back to the foreclosing lender) hit a nine-year low, and accounted for 2.8 percent of all home sales in 2016, down from 2.9 percent in 2015.

Source: Florida Realtor