Richmond Foreclosure Update

This is a guest post by Brian Koziol. Brian is the Housing Policy & Research Analyst with Housing Opportunities Made Equal of Va Inc. He is a graduate of the Master of Urban and Regional Planning program from Virginia Commonwealth University. Brian lives in Richmond Va.

Here is a brief foreclosure update for the Richmond area. The number of Notice of Trustee Sales (NTS)[1] and Real Estate Owned (REO)[2] properties in the Richmond Metropolitan Statistical Area (MSA) peaked in October of 2010 at 954 and 342 respectively.[3] After a precipitous drop in the end of 2010, activity rebounded slightly, but as of June 2011, total foreclosure activity has contracted to pre-2009 levels. Unfortunately, this decline in activity is caused not by a decreasing number of homes going into foreclosure, but rather the substantial inventory of distressed properties causing processing delays.

As of April 2001, the average length of time loans in foreclosure had been delinquent was 567 days, a 77 percent increase (248 days) from just two years earlier. The Virginia Housing Development Authority projects that at the current pace of processing it will take 52 months to resolve the backlog of distressed inventory.[4]

[1] A Notice of Trustee Sales indicates that a lender has scheduled a sale date for a delinquent property.

[2] Real Estate Owned properties are properties which were purchased by the lender at the trustee sale.

[3] RealtyTrac Monthly Foreclosure Releases

[4] Review of Virginia Foreclosure Trends, June 21, 2011, Virginia Housing Development Authority.


One thought on “Richmond Foreclosure Update

  1. I could resolve this backlog in a lot less time. Offer the homeowners an actual (as opposed to fake), realistic and fair loan modification. Everyone wins (except maybe the servicers who win by foreclosing and charging lots of excessive fees).

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