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Recent Posts
- HAPPY VALENTINES DAY – LOVE YOUR COMMUNITY
- $25 Billion in Landmark Settlement
- SAN DIEGO DEFAULT FILINGS GOING DOWN
- 15 YEAR DREAM COMES TRUE IN DOWNTOWN SAN DIEGO
- Post Thanksgiving….Pre Christmas
Local Resources
Archive for the 'Foreclosures' Category
$25 Billion in Landmark Settlement
Attorney generals and the Federal Government in 49 states have reached a landmark settlement with 5 loan servicers.
The $25 billion will be allocated to each of the 49 states who agreed with the federal settlement and direct payments to assist owners who are current on their payments but are under water. This is designed by the Obama administration to benefit the responsible homeowner who does not have a Fannie Mae or Freddie Mac or FHA loan. It’s designed so these responsible homeowners can take advantage of the low interest rates by refinancing even though they have no equity in their home.
This settlement was brought about after an investigation where Government investigative agencies, like Dept. Of Justice, and HUD, found foreclosure related documents being signed outside the presence of a notary public and without knowing whether the facts they contained were really correct. In other words they violated the law. It holds the violators accountable for unlawful practices and allocates $20 million toward homeowner relief without any amount of money coming from taxpayers. Homeowners will be able to refinance or reduce their principal without a lot of red tape. It means that current and future homeowners will now be treated fairly.
If your home is either serviced by one of the five banks or you have your loan with one of the five banks, you may be eligible for assistance.
Who should you call?
Ally/GMAC – 800 766 4622
Bank of America – 877 488 7814
CITI – 866 272 4749
JP Morgan Chase – 866 372 6901
Wells Fargo – 800 268 3212
If you would like to contact the U.S. Dept. of Housing and Urban Development, click.
I hope you found this information helpful. If you are under water, or behind in your payments and are looking for assistance, I can help you. Please contact me at 858 395 7727.
I am experienced in short sales and may be able to assist you.
SAN DIEGO DEFAULT FILINGS GOING DOWN
The number of homeowners receiving NOD’s (Notice of Defaults) declined for the first time since 2008. However, the foreclosures rose slightly from 666 in November to 725 in December. Still….this may be another sign of the housing market making it’s ever-so-slowly turn-around in the real estate market. Now, with interest rates falling into the sub 4% range, the the signs are green for 1) first-time buyers to enter the market, 2) for 2nd home buyers to find their vacation property, and 3) for move-up buyers be excited they will now be able to sell their home to buy “up”. In San Diego County, the inventory is shrinking, making it difficult for buyers to find their dream property. However, with this slightly good news, more sellers may see spring, 2012 as the time to enter the selling market.
In the State of the Union address, President Obama pledged to make the purchase of real estate, or at least getting a loan easier for borrowers, pledging homeowners a $3,000 savings allowing them to refinance without red tape. He promises smart regulations to prevent financial fraud.
If you are interested in purchasing real estate, please click on “Home Search” to the left of this blog. Or call me at 858 395 7727…I am a committed professional and will assist you in purchasing…or selling…your home.
SAN DIEGO FORECLOSURES 1974 to Present
San Diego has kept records of the number of foreclosures and Trust Deeds and Trust Sales since 1974. And even though it appears, statistically speaking, the number of Notice of Defaults has been reduced, the next 90 days is critical in that it will reveal whether the pendulum is swinging back to “safety”, or are the banks about to deliver stored up foreclosures into the marketplace.
The number of “All Deeds” indicates our current market, good, bad or unchanged. The number of NOD (Notice of Defaults) indicates the number of homes that are knocking at the lender’s door. Those NOD’s that go to sale are the Trustee Deeds.
In 2009 there were a total of 38,300 approximate NOD’s filed. That is an average of 3192 notices filed each month during 2009. In 2010 there was a total of 24,800 approximate filings. The average is 2070 per month. The result is an average of 1199 fewer filings per month in 2010 than 2009. In January, 2011 there have been 2035 filings of Defaulted Loans.
The attached statistical report gives you a detailed historical look at these numbers since 1974.
WHAT’S THE STORY ON DISTRESSED HOME SALES?
So….what’s the real story? Is the economy beginning to recover? Have we leveled off? Will there be more foreclosures flooding the marketplace? Are short sales selling in the marketplace? What’s a better buy? Short sales or foreclosures? These are all good questions. Let me help you to understand in simple numbers the difference between foreclosures and short sales, and what is the better deal.
The answers differ in each state. In San Diego, a lifestyle that includes urban and rural, and much of it outdoors where the sun is abundant, it differs almost in regions.
What’s a better buy? Short sales? Foreclosures? It depends. Short sale sellers still have title to the property and own it. Hopefully they have been in communication with their lender with regard to a short sale possibility. It also doesn’t mean, just because a seller accepts your offer on his short sale that the lender will go along with it. The seller must be in hardship, must have missed payments and the lender must be willing to look and accept a reasonable offer. Reasonable. That means the lender wants to see comparables in the neighborhood of like properties. So, this could be a good deal.
A foreclosure is where the bank has taken back the property and now they are the owner. Also known as REO (real estate owned). The agent representing the bank on a foreclosure has arrived at the listing price with the help of comparables of like property for the lender. So, this could be a good deal.
What’s the best deal? Some of the better deals are made when a seller has equity in the property and has motivation to sell to a buyer who has been pre-approved. This is where agents can really put on their best negotiating skills to make the best deal for both buyer and seller.
Here is a simple chart showing the number of Notice of Defaults issues as of December, 2010, by value of property. The bulk of the defaulted loans are in the $300k-$400k price point.
No one really knows where it’s going, but if you are considering selling your home, or perhaps buying real estate, call your agent and discuss your needs, your motivation and your opportunities.
WHAT IS “SHADOW INVENTORY”?
I’ve been hearing about this “Shadow Inventory” for over a year and am wondering how it will affect buyers & sellers & home prices, or is the shadow a phantom.
First “Shadow Inventory” is defined by lenders as inventory or homes held back by the lender. They are foreclosures, (or Pre-Foreclosure) bank-owned properties, and properties seriously delinquent at 90+ days. Simply put, the would be considered Pipeline Foreclosures which are not visible.
As I read the recent numbers for foreclosures and pre-foreclosure properties, they appear to be receding when comparing same time last year, but I guess that doesn’t tell the whole story. According to the Atlantic, December 18th issue, who quoted a recent Bloomberg Report, that even though foreclosures nationally were down 3.5% from a year ago, CoreLogic analyzes the increasing inventory due to the length of time it’s taking lenders to process the current inventory attributed to short sales, foreclosures (moratorium) and pre-foreclosures. That’s a mouthful.
Maryland, Illinois and Florida have the highest supply reaching over 20 months. California, overall statewide, has 16 months supply. There are markets in California where we are seeing only a 6-8 months supply.
If we can’t sell the current inventory, (14 month supply in Carlsbad, CA) it’s going to be difficult to sell the supply of inventory coming down in the next few months. And, another question….will the banks trickle the “pipeline” inventory, or flood the market all at once. Flooding the market will certainly have an impact on currently listed pricing.
Here is the current inventory in a few neighborhoods in San Diego.
Downtown San Diego condo market (92101 zip) 422 units for sale, $110k-$4.9k. Mission Hills (92103 zip) 71 homes for sale, $280k-$3.095k. La Jolla (92037 zip), currently 233 homes for sale, $599k-$29,500,000., and 209 condos, $215k-$3.3k. Currently there are 31 Pending homes and 28 condos in La Jolla. In Carlsbad (92010,92011,92008,92009 zip) there are 381 homes for sale, $305k-$1695k. And in Del Mar (92014 zip) there are 143 homes for sale, $599,400-$61 million.
In summation, I have not seen any hard evidence of a large number of properties hitting the market. So far, it’s only hearsay. Let’s hope the bad news that sells papers and stirs up interest, ends up being good news as more jobs are being created, and the slow market is due to the “holiday season”.
Buyers are getting some great deals on foreclosed and distressed property at ridiculously low interest rates. Check out Home Search on my site and review some of the areas I mentioned.
