Don and Janet Mohr,CCIM Realty Executives
There are so many articles the housing market. Many of them have misinformation. One in particular had a licensed Real Estate agent claiming that 90% of all homes that have a notice of trustee sale filed will end up back at the bank.
In following the market, I knew this statement was incorrect so I decided to contact my friends at Net Value Central. According to Dave Bignoli of Net Value Central, the real figures for all trustee sales filed between 1/1/2009 and 6/1/2010 are as follows:
Total Sales: 141,006
Still Active: 23,235 (16%)
Sold prior to Auction: 5,186 (4%)
Cancelled: 40,257 (29%)
Sold at Auction: 72,325 (51%)
When a home is sold at auction, the bank is not always the the winning bidder. Here is the breakdown:
- To Beneficiary: 54,008 (75% of sold at auction, 38% of filed foreclosures)
- To 3rd Party: 17,784 (25% of sold at auction, 13% of filed foreclosures)
As you can see, the 90% number reported is far from the truth. It is unfortunate that so much misinformation is being reported.