The document summarizes Georgia's distressed sales market and 2013 foreclosure outlook. It provides historical data on foreclosure trends in the US and Georgia since 2006. It analyzes 2012 foreclosure statistics for the US, Georgia, and Atlanta. It also examines efforts to dispose of distressed inventory through REO sales, short sales, and potential short sales. The document concludes that more REOs will eventually be released for sale, short sales will continue to increase, and foreclosure activity may jump later in 2013 due to delayed proceedings.

1. GEORGIA DISTRESSED SALES MARKET
with 2013 foreclosure market outlook

2. What we’ll cover today
• U.S. & State Historical Foreclosure Trends
• 2012 Market Summary
• Disposing of Distressed Inventory
• Conclusions
• RealtyTrac Resources
©RealtyTrac Inc. 2012, Not for Distribution 2

3. U.S. AND STATE FORECLOSURE TRENDS

4. NATIONAL HISTORICAL TRENDS
More than 10 million
More than 10 million
starts and nearly 55
starts and nearly
million completions
million completions
(REO) since January
(REO) since January
2006
2006
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5. GEORGIA HISTORICAL TRENDS
Foreclosure starts past
Foreclosure starts past
peak, but REOs actually
peak, but REOs actually
increased slightly in 2012
increased slightly in 2012
from 2011
from 2011
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6. POSSIBLE BACKLOG FORMING?
July court ruling
July court ruling
corresponds with sharp
corresponds with sharp
drop in foreclosure activity
drop in foreclosure activity
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7. ROBO-SIGNING ROLLER COASTER
Robo-signing
Robo-signing 13 straight months of
13 straight months of
controversy hits in
controversy hits in annual declines until
annual declines until GA Court of
GA Court of
October 2010
October 2010 National Mortgage
National Mortgage Appeals ruling in
Appeals ruling in
Settlement finalized in
Settlement finalized in July triggers
July triggers
April 2012
April 2012 another slowdown
another slowdown
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8. HARDEST HIT GEORGIA COUNTIES
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9. 2012 FORECLOSURE SUMMARY
• 1.8 million U.S. properties with foreclosure filings
• Down 3% from 2011, down 36% from 2010
• 25 states (mostly judicial) with increasing activity
• 105,000 Georgia properties with foreclosure filings
• Down 4% from 2011, down 19% from 2010
• 70 out of 159 counties with increasing activity
• 2.58% of housing units with filing (No. 4 among states)
• 76,000 Atlanta properties with foreclosure filings
• Down 5% from 2011, down 20% from 2010
• 3.51% of housing units with filing (No. 7 among metros)
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10. DISPOSING OF DISTRESSED INVENTORY
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11. UNSOLD REO INVENTORY
Atlanta has third highest
Atlanta has third highest
REO inventory total behind
REO inventory total behind
Chicago and Miami
Chicago and Miami
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12. REO SALES PICKING BACK UP
14% quarterly increase in Q3
14% quarterly increase in Q3
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13. REO PRICES HOLDING STEADY
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14. SHORT SALES REALLY TAKING OFF
40% annual increase in Q3
40% annual increase in Q3
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15. BUT SHORT SALE PRICES SLIDING
14% annual decrease in Q3
14% annual decrease in Q3
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16. PLENTY OF POTENTIAL SHORT SALES
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17. SHORT SALES MOVING UPSTREAM
31 states posted annual
31 states posted annual
increases in non-
increases in non-
foreclosure short sales
foreclosure short sales
in Q3 2012
in Q3 2012
32 percent increase in
32 percent increase in
Georgia
Georgia
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18. CONCLUSIONS
• Plenty of inventory already in the pipeline
• Banks will eventually release REOs for sale in greater
numbers
• Short sales will continue to increase as an alternative to
foreclosure
• Possible jump in foreclosure activity later in 2013
• Foreclosures delayed by court ruling will eventually be pushed
into the process
• Long-term foreclosure trend is still downward
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19. REALTYTRAC RESOURCES
• Local Stats & Trends (free and embeddable)
• http://www.realtytrac.com/trendcenter/
• Real Estate News & Reports (free)
• http://www.realtytrac.com/content
• Professional subscription (address-level access)
• http://www.realtytrac.com/professionals
• Buyer leads (exclusive territories)
• Call 800.306.5930
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