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My most asked question…Chris, What is going on with Foreclosures?

Answer – “Nothing”

As you may know, Lord and Stanley Realty concentrates highly with REOs (banked owned properties) and BPOs (Broker Price Opinions) on foreclosure properties, primarily through “FreddMac” and private lenders.  In other words, we consider ourselves to be on the front line of foreclosure properties.

Lord and Stanley History: 2008 – Present
When the market crashed in 2008, we went from about 15 foreclosure listings per month to 150 listings per month.  Since 2008 the market has been playing catch up on unloading foreclosures and was about caught up until Covid-19 hit.

Currently, There are ONLY 4 active foreclosure in all of Tallahassee. (at the time of writing)

Forbearance:  has been extended until December 31, 2021.

Inventory in Tallahassee is very low, due to limited sellers moving around and no foreclosure listings on the market.
When the forbearance is lifted, if the job market is not stable, there will be a “Wave of Foreclosures”.
Full Article here.
“As a result, he continued, a “wave of foreclosures is likely coming that will hit low-income homeowners. As of August, over 10% of the eight million single-family mortgages backed by the Federal Housing Administration were delinquent by more than three months. According to the FHA, the reason for 86% of those delinquencies was ‘a national emergency,’ a category that includes the pandemic. These delinquencies are heavily concentrated among loans associated with low credit scores.”” – FULL Article here.
Prices have never been higher so this is a great time to sell if you have a place to move to.
Personal Note:
I consider myself an optimistic person by nature, but I want to make sure my clients know this market is very fickle and may change at any moment. Tallahassee overall is a great market for future growth, but the next few years may be tough.  (Hey, at least Tallahassee doesn’t have to invest in $400 million of water pumps, like Miami has to).Original story, January 14th, 2021.

Quick Note: May 19th, 2021 – L&S believes foreclosures will Not be similar to 2008 due to the infrastructure plan helping families in financial distress.  There will definitely be a supply of REO properties in 2022, but a real estate recession should be skirted.