Foreclosures are on the rise in Oklahoma City. These properties may be available at attractive prices, but may include financing requirements that exclude some buyers. (AP file photo/David Zalubowski)
Oklahoma City – Oklahoma City is one of the top 10 metropolitan areas with an increase in foreclosure claims, according to a new report from real estate data provider Attom.
According to the report, one in every 854 residential units nationwide received a foreclosure application in the first half of 2022. In Oklahoma City, from January through June, he reported 1,003 filings, up 394% from 203 during the same period last year.
About 1.6 million U.S. homeowners have sought COVID-19 relief through the government’s Mortgage Forbearance Program. The program allowed borrowers to suspend or reduce their mortgage payments for a limited period of time while trying to regain their financial footing.
“Tolerance is over,” said Realty Experts real estate agent Randy Tarlton. Homeowners must either make payments or lose their homes.
That means homebuyers have more inventories and prices go down as lenders and mortgage service providers put those homes back on the market.
Tarleton said active listings in the Oklahoma City metropolis have doubled in the past five months. About 4,900 homes were listed on Friday, of which 74 of his fell in value on the day.
“The market has cooled,” Tarleton said. “Buyers who dropped out of the market because they didn’t get a home should go back to the market.
When it comes to foreclosed properties, buyers are lured by the price and may find themselves unable to get a loan.
“Most of the homes that have been repossessed are in dire condition. They may be missing drywall, appliances and even lighting fixtures, and may not have had regular maintenance on plumbing or roofs.” says Mr. Tarleton.
“If a house requires $20,000 for work, the seller may add an additional 10 percent to that amount to lower the price,” he said. I think.”
But the property is unlikely to qualify for the financing that most first-time buyers rely on.
“FHA, VA, and traditional loans all have health and safety requirements that are often lacking in foreclosed properties, such as water and electricity that are ‘on service,’” he said. rice field.
However, these properties can be good buys for investors, parents buying a home for their children, those saving up cash for a large down payment, and those who have convenience when it comes to home repairs. said Tarleton.
Foreclosed properties will continue to return to the market for some time, as it can take two to three years after the buyer misses the first payment.
Most mortgage companies will work with homeowners to prevent that from happening, he said. You can also allow payment when the item is sold.
In Attom’s Mid-2022 Foreclosure Report, among the 223 metropolitan areas analyzed with a population of 200,000 or more, the highest foreclosure rates were: Atlantic City, New Jersey (0.33%); Jacksonville, North Carolina (0.31%); Chicago, Illinois and Columbia, South Carolina (0.30%).
According to the report, the states with the longest average foreclosure timelines with foreclosures completed in Q2 2022 are Nevada (2,683 days), Hawaii (2,619 days), New Jersey (1,984 days), Louisiana (1,901 days), and New York. (1,823 days). .
States with the shortest average foreclosure timelines completing foreclosures in Q2 2022 were West Virginia (82 days), Montana (84 days), Missouri (117 days), Minnesota (141 days), and Arkansas (154 days). ) was.