Santa Barbara, CA  (MMD Newswire) December 22, 2010 — RealtyStore

(www.realtystore.com), the leading source for local residential foreclosure listings nationwide, conducted its latest study of foreclosure trends in Denton County TX. The study showed 1,184 foreclosure listings, or REOs, recorded in the county. Of this total, only 38% , or 447 foreclosed homes, are presently for sale. The remaining 62% of local foreclosures, numbering 737 foreclosed homes, are dormant in the area’s standing ‘shadow inventory’ of inactive foreclosure listings.

“Remarketing activity of REOs in Denton County is currently light, compared to the total number of completed foreclosures in the county,” commented Peter Ranck, Vice President of RealtyStore. “Foreclosures listed for sale account for 5.7% of all homes presently for sale in Denton County. However, if all the county’s shadow inventory of foreclosed homes were brought to market today, the share of foreclosure listings would shoot up to 13.8% of the market at large. That potential level of foreclosure saturation could impact local prices and days-on-market sales rates in the area.”

The term ‘shadow inventory’ has been used under various definitions in recent industry reports. For the purposes of RealtyStore’s foreclosure trends analysis, shadow inventory counts only those foreclosed homes which are fully repossessed, but not yet actively re-marketed for re-sale to the public. Large standing shadow inventory is a growing concern in certain counties, such as Denton County. By remaining off the market, this inventory does not increase the number of local homes for sale, causing active inventory to remain artificially low. This in turn can influence home prices and values in the area.

Foreclosure ownership breaks down in Denton County as 70% bank foreclosures and 30% government repossessed homes, such as HUD homes and Fannie Mae or Freddie Mac foreclosures. The marketing activity of each owner group closely tracks to the overall market, with each placing about 38% of their total foreclosure portfolio for sale on the market. How and when the remaining foreclosure inventory will be brought to market is yet to be determined.

A pricing analysis of RealtyStore’s latest listings data for Denton County showed local foreclosures at a greater average price discount than most counties nationwide. The national ‘foreclosure discount’ has been documented at an average of 27%. Denton County foreclosures post a median price of $139,900, or a 35% lower price than the overall market’s median home price of $215,000. The lowest median foreclosure prices are listed in Denton County by HUD. Foreclosed HUD homes in Denton County have a median list price of $108,750 and range from $48,000 to $187,200. Fannie Mae or Freddie Mac foreclosures range from $37,900 to $369,000 with a median of $135,900. Bank foreclosures post the broadest range of list prices from $15,000 to $1.9million, and show a local median price of $143,350. While various factors such as location, size, condition and amenities will impact pricing for any house, overall, foreclosure listings in Denton County continue to provide attractive discounts.

Glossary of foreclosure listings terms:
REO = Real Estate Owned, or homes foreclosed upon and having title assumed by a lending institution or a government sponsored enterprise such as HUD homes, Fannie Mae or Freddie Mac.

Foreclosure listing = An REO property with a posted for sale price and actively marketed to third-parties, including the public at large.

Shadow inventory = REO property which is held free and clear by an institutional owner (a bank or a government sponsored enterprise) but is not actively listed for re-sale or marketed to third parties, including the public.

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Media Contact:

Dara Peterson, RealtyStore Media Relations, 805-214-6968, DaraP(at)RealtyStore.com

About RealtyStore
RealtyStore (www.realtystore.com), a division of Nations Info Corporation, is the leading provider of foreclosure listings and discount property data nationwide. RealtyStore’s mission is to empower its customers with the tools, education and analysis required to identify and potentially maximize profits with undervalued real estate. Collected from hundreds of public and private sources, RealtyStore’s proprietary database includes over 1 million listings including pre foreclosures, foreclosures, short sales, tax defaults and rent to own or owner financed listings. As the foreclosure listings industry leader, RealtyStore.com is the most visited foreclosure website, averaging over 1.1 million unique visitors per month in Q3, 2010. Realtystore.com is the only specialized foreclosures website to rank in the Hitwise Top 20 Internet Usage Report for the Real Estate Category (October 2010).

Reporting methodology
The RealtyStore County Foreclosures Review provides the total number of REO (real estate owned) foreclosed properties with a recording date on or before the date of this release. REO properties have completed the foreclosure process and have been repossessed by a bank or government sponsored loan guarantor such as Fannie Mae, Freddie Mac, HUD or the VA. REO title holders and inventory counts in any area can vary at any time. Counts and prices are accessed through RealtyStore’s proprietary database which is derived through hundreds of public and private data providers. Local housing market data is derived from third party and public records offices.