Savannah Homes For Sale

Savannah areal foreclosure outlook brightening

Savannah’s residential foreclosure rate remains near unprecedented highs, but new data suggests a downward trend ahead.

Lenders repossessed 1.83 percent of mortgaged homes in May, marking the 20th straight month the foreclosure rate has exceeded 1.5 percent, according to CoreLogic, a financial research firm. However, the rate of borrowers at least 90 days behind on payments fell to its lowest level since October 2009, at 6.04 percent.

Credit the lenders on both fronts, local real estate insiders said. Banks have ramped up efforts to modify mortgages for struggling borrowers and are repossessing homes from those they consider beyond hope.

“It appears banks realize that the only way to get out of the hole is to take the properties out of the hands of folks who cannot make payments and place them in the hands of people who can make the loan payments,” said Rob Sales, a Realtor with Prudential Southeast Coastal Properties who specializes in working with distressed sellers.

“Additionally, some banks are realizing it is best in many cases to lower the mortgage balance and allow the existing owners to stay in the house. If the banks continue down this path, we may get out of this downturn sooner than previously predicted.”

Loan modifications are on the rise. Bank of America reported doing 69,000 mortgage modifications nationwide in the second quarter. Wells Fargo has done 695,000 modifications since the start of 2009.

Repossessions by the bank fell by 1.5 percent in the first six months of 2011.

Foreclosure properties continue to dominate the local home sales market.

Cash sales, almost all of which are on distressed properties, accounted for 25 percent of the deals closed in the first half of the year. Realtors estimate another 15 percent — or more — of sales were of repossessed properties purchased by mortgage-holding owner-occupants.

A local appraiser said the strong spring sales season diminished the supply of repossessed properties. June was the best sales month locally since before the downturn.

Tim Adams of Adams Realty said the flow of repossessed properties being listed for sale has become irregular. In May, lenders listed 15 properties through his company, only to list five in June. He received 12 in July.

The situation suggests lenders are gaining incremental confidence in the market, he said.

“I don’t think this indicates we’re getting close to the end. It’s more likely that the banks are artificially regulating the flow to keep from saturating the market,” Adams said. “The pricing has certainly gotten more aggressive, and that’s the best way to move property.

Hibachi Grill faces health dept. deadline - WTOC, Savannah ...

A Savannah restaurant could reopen Friday afternoon after being cited by the Chester County Health Department.

The Chatham County Health Department Environmental Health Division gave the Hibachi Grill and Supreme Buffet until 3 p.m. Friday to submit a formal plan of corrective action to address concerns.

After reviewing the plan, Environmental Health staff will reinspect the restaurant.

If the restaurant passes the inspection, it will be allowed to reopen Friday, according to the health department.

The restaurant has contracted with a consulting firm for ongoing employee education and training to address some of the health concerns, according to the health department.

The restaurant will have to participate in more frequent inspections over the next 12 months and must maintain a score of 85 or better.

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