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Is the Foreclosure Cycle about to Broken?

October 12, 2012 Leave a comment

California Foreclosures

December 13, 2011 Leave a comment

You can get a foreclosure report right down to your zip code with this link.

California Foreclosure Report

Dave & David Warner

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The Foreclosur​e Report – August 2011

September 13, 2011 Leave a comment

California
Notice of Default filings increased 69.5 percent to the highest level in a year. Notice of Trustee Sale filings were up more moderately, rising 6.0 percent month-over-month, but down 23.6 percent year-over-year. Cancellations were nearly flat, up just 1.9 percent from July. Activity on the courthouse steps increased in August. Properties Sold Back to Bank (REO) increased 12.3 percent from the prior month. Properties Sold to 3rd Parties rose 9.9 percent month-over-month, and 10.8 percent year-over-year. Time to Foreclose increased to 333 days in August, which is 49 days longer than a year ago.
View all California stats by state, county, city or ZIP……http://www.foreclosureradar.com/california-foreclosures.

Thank you,  Foreclosure Radar

Dave & David Warner

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Foreclosure Report – June 2011

June 14, 2011 1 comment
Time To Resell In May 2011 Improved for Investors

Third party investors resold the homes they previously purchased at auction at a faster pace throughout our coverage area. As the most sophisticated and motivated home sellers in the marketplace, these investors provide an important indicator as to the health of the entire housing market. While the statistic is encouraging, it’s too early to tell whether it is a turning point from the otherwise recent downward trend within the housing market.Foreclosure filing activity was down in May 2011, with fewer foreclosure filings in all states except California, where there was an increase in Notice of Trustee Sale filings. This increase may lead to more foreclosure sales in future months. Activity on the courthouse steps was mixed, with California the only state to have increases in foreclosure sales both Back to Bank and Sold to 3rd Party. After a jump in foreclosure cancellations across the board in April 2011, there was a reversal of this trend in May, with cancellations dropping significantly in California, Nevada, and Washington. Cancellations moderately declined in Arizona, and increased in Oregon.

“The slowing foreclosure process has left fewer affordable homes available for sale” says Sean O’Toole, CEO and Founder of ForeclosureRadar. “Foreclosure investors may be the only winner so far, benefiting by being able to resell homes purchased at foreclosure auction a little more quickly.”

California

Notice of Default filings fell in May 2011 with a 4.0 percent drop resulting in the fewest foreclosure starts since October 2008 when SB 1137 resulted in a temporary halt in the Notice of Default process. More foreclosures were scheduled for sale at the courthouse steps in May with Notice of Trustee Sale filings up 16.6 percent from April, the first month-over-month increase this year. Notice of Trustee sales remain down year-over-year off by 9.0 percent. Cancellations of foreclosure sales dropped 24.3 percent compared to April after jumping 27.0 percent from March. Foreclosure sales on the courthouse steps were up from the prior month, with 3.4 percent more sales Back to Bank and a 4.1 percent increase in foreclosed properties Sold to 3rd Parties. The average Time to Foreclose continued a steady climb, increasing 10.3 percent to a new record of 344 days. Third parties are reselling inventory more quickly, with the Time to Resell down 7.6 percent month-over-month to 134 days, the fewest number of days since September 2010 — likely due in part to a lack of inventory throughout much of California.
View all California stats by state, county, city or ZIP

Thank you ForeclosureRadar.

Dave & David Warner

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Federal Retreat on Bigger Loans Rattles Housing

May 12, 2011 4 comments

Peter DaSilva for The New York Times

A home in Carmel Valley, Calif., priced for sale at $789,500. Homeowners in high-price areas worry that prices could tumble.

MONTEREY, Calif. — By summer’s end, buyers and sellers in some of the country’s most upscale housing markets are slated to lose one their biggest benefactors: the deep pockets of the federal government. In this seaside community of pricey homes, the dread of yet another housing shock is already spreading.

Multimedia

Monterey, Calif., home priced at $820,000. Mortgages in Monterey County will be guaranteed only up to $483,000.»

“We’re looking at more price drops, more foreclosures,” said Rick Del Pozzo, a loan broker. “This snowball that’s been rolling downhill is going to pick up some speed.”

For the last three years, federal agencies have backed new mortgages as large as $729,750 in desirable neighborhoods in high-cost states like California, New York, New Jersey, Connecticut and Massachusetts. Without the government covering the risk of default, many lenders would have refused to make the loans. With the economy in free fall, Congress broadened its traditionally generous support of housing to a substantial degree.

But now Democrats and Republicans agree that the taxpayer should no longer be responsible for homes valued well above the national average, and are about to turn a top slice of the housing market into a testing ground for whether the private mortgage market can once again go it alone. The result, analysts say, will be higher-cost loans and fewer potential buyers for more expensive homes.

Michael S. Barr, a former assistant Treasury secretary, said the federal government’s retrenchment would be painful for many communities. “There’s always going to be a line, and for the person just over it it’s always going to be an arbitrary line,” said Mr. Barr, who teaches at the University of Michigan Law School. “But there is no entitlement to living in a home that costs $750,000.”

As the housing market braces for more trouble, homeowners everywhere have been reduced to hoping things will someday stop getting worse. In some areas, foreclosures are the only thing selling. New home construction is nearly nonexistent. And CoreLogic, a data company, said Tuesday that house prices fell 7.5 percent over the last year.

The federal government last year backed nine out of 10 new mortgages nationwide, and losses from soured loans are still mounting. Fannie Mae, which buys mortgages from lenders and packages them for investors, said last week it needed an additional $6.2 billion in aid, bringing the cost of its rescue to nearly $100 billion.

Getting the government out of the mortgage business, however, is proving much more difficult than doling out new benefits. As regulators prepare to drop the level at which they will guarantee loans — here in Monterey County, the level will drop by a third to $483,000 — buyers and sellers are wondering why they should be punished simply for living in an expensive region.

Sellers worry that the pool of potential buyers will shrink. “I’m glad to see they’re trying to rein in Fannie Mae, but I think I’m being disproportionately penalized,” said Rayn Random, who is trying to sell her house in the hills for $849,000 so she can move to Florida.

Buyers might face less competition in the fall but are likely to see more demands from lenders, including higher credit scores and larger down payments. Steve McNally, a hotel manager from Vancouver, said he had only about 20 percent to put down on a new home in Monterey County.

If a bigger deposit were required, Mr. McNally said, “I’d wait and rent.”

Even those who bought ahead of the changes, scheduled to take effect Sept. 30, worry about the effect on values. Greg Peterson recently purchased a house in Monterey for $700,000. “That doesn’t get you a palace,” said Mr. Peterson, a flight attendant.

He qualified for government insurance, which meant he needed only a small down payment. If that option is not available in the future, he said, “home prices all around me will plummet.”

The National Association of Realtors, 8,000 of whom have gathered in Washington this week for their midyear legislative meeting, is making an extension of the loan guarantees a top lobbying priority.

“Reducing the limits will put more downward pressure on prices,” said the N.A.R. president, Ron Phipps. “I just don’t think it makes a lot of sense.” But he said that in contrast to last year, when a one-year extension of the higher limits sailed through Congress, “there’s more resistance.”

   A Federal Housing Administration spokeswoman declined to comment but pointed to the Obama administration’s position paper on reforming the housing market. “Larger loans for more expensive homes will once again be funded only through the private market,” it declares.

Brokers and agents here in Monterey said terms were much tougher for nonguaranteed loans since lenders were so wary. Borrowers are required to come up with down payments of 30 percent or more while showing greater assets, higher credit ratings and lower debt-to-income ratios.

In the Federal Reserve’s quarterly survey of lenders, released last week, only two of the 53 banks said their credit standards for prime residential mortgages had eased. Another two said they had tightened. The other 49 said their standards were the same — tough.

The Mortgage Bankers Association has opposed letting the limits drop, although a spokesman said its members were studying the issue.

“I don’t want to sugarcoat this,” said Mr. Barr, the former Treasury official. “The housing finance system of the future will be one in which borrowers pay more.”

The loan limits were $417,000 everywhere in the country before the economy swooned in 2008. The new limits will be determined by various formulas, including the median price in the county, but will not fall back to their precrisis levels. In many affected counties, the loan limit will fall about 15 percent, to $625,500.

Monterey County, however, will see a much greater drop. The county is really two housing markets: the farming city of Salinas and the more affluent Monterey and Carmel.

Real estate records show that 462 loans were made in Monterey County between the current limit and the new ceiling since the beginning of 2009, according to the research firm DataQuick. That was only about 1 percent of the loans made in the county. But it was a much higher percentage for Monterey and Carmel — about a quarter of their sales.

Heidi Daunt, with Treehouse Mortgage, said loans too large for a government guarantee currently carried interest rates of at least 6 percent, more than a point higher than government-backed loans.

“That can definitely blow a lot of people out of the water,” Ms. Daunt said.

Dave & David Warner

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California Mortgage Defaults Drop Again

April 25, 2011 1 comment

The number of financially distressed California
homeowners who were dragged into the formal foreclosure process declined
again last quarter, the result of turmoil and policy changes within the
mortgage industry as well as shifts in the economy, a real estate
information service reported.

A total of 68,239 Notices of Default (NoDs) were recorded at county
recorders offices during the January-to-March period. That was down 2.2
percent from 69,799 for the prior quarter, and down 15.8 percent from
81,054 in first-quarter 2010, according to San Diego-based DataQuick.

Last quarter’s activity was the lowest since 53,493 NoDs were recorded
in the second quarter of 2007. It was just over half the record 135,431
default notices recorded in the first quarter of 2009.

“Lenders and servicers have put various temporary holds on foreclosure
filings while they work on procedural issues and respond to regulatory
and legal challenges. It’s unclear how much of last quarter’s decline
can be attributed to market factors and strategic decisions, and how
much can be attributed to the formalities of the foreclosure process,”
said John Walsh, DataQuick president.

Most of the loans going into default are from the 2005-2007 period: the
median origination quarter for defaulted loans is still third-quarter
2006. That has been the case for two years, indicating that weak
underwriting standards peaked then.

Thank you , Arnold Nieto

Dave & David Warner

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The Foreclosure Report – March 2011

April 15, 2011 1 comment
Foreclosure sales rose dramatically in most of our coverage area, though much of the increase was due to March having more days than February. In California foreclosure sales increased 35.1 percent overall, but rose just 10.5 percent on a daily average basis. Nevada foreclosure sales, however, bounced back dramatically after falling in February, rising 109.5 percent even on a daily average basis. Foreclosure starts, when viewed on a daily average basis, declined across our coverage area in March, though the overall number of filings increased in California, Nevada and Washington due to the longer month. Time to Foreclose continues to increase across the board, most notably in Nevada, where sales were impacted by a local court ruling.”Between government intervention, internal issues within the banks, and even simple deviations like the number of days in the month, it is easy to come to the wrong conclusions about foreclosure activity,” says Sean O’Toole, CEO and Founder of ForeclosureRadar.com. “The one thing that remains clear is that while the process has slowed, there remains no consensus on a viable solution other than foreclosure to eliminate the excess mortgage debt that has left millions underwater and continues to hinder the broader economy.”
California
Notice of Default filings in California rose to their highest level since October 2010, up 17.3 percent month-over-month to 26,615 filings, but only increased 3.2 percent on a daily average basis. Notice of Trustee Sale filings fell for the third consecutive month, down 3.3 percent overall from February, and 25.2 percent on a daily average basis. Year-over-year foreclosure filings were down with Notice of Default filings falling 19.7 percent and Notice of Trustee Sale filings dropping 31.0 percent from March 2010. After a slow February foreclosure sales rose with sales Back to Bank (REO) up 28.6 percent and properties Sold to 3rd Parties, typically investors, jumping 61.5 percent. On a daily average basis those increases were just 5.0 percent for sales Back to Bank (REO) and 24.3 for properties Sold to 3rd Parties. The average Time to Foreclose continues to climb, up 4.1 percent month-over-month to 302 days, a significant 83.4 percent increase year-over-year, and a new record.
View all California stats by state, county, city or ZIP

Dave & David Warner
First Team Real Estate
714-870-1028
949-547-0480Dre #’s 01236069-01236519
callwarner.com
callwarner.ft@gmail.com

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