6November2008

California Mortgage Default Filings Drop Amid Procedural Change

Posted by staceysloan under: Housing and Economy; Buying a Home; Housing Recovery; Selling a Home.

The number of default notices filed against

California homeowners fell last quarter for the first time in 3 years.  But the good news isn’t good.  It’s primarily due to changes made at the state level.  But on this note, the Bailout will change the current status quo on foreclosure.  Look for many people to opt for loan modifications; if they can qualify, and if not, we may see a rise in short sales, as they may be fast tracked for a quick sale rather than the additional cost to lenders of going all the way to foreclosure.  Remember a short sale is when a property sells for less than is owed to the bank, but sells subject to bank approval.  If you become involved in such a transaction, make sure you consult your CPA and your lender for all tax consequences and financial liability, if any.

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6November2008

What Were the Actual Numbers? September 2008

Posted by staceysloan under: Housing and Economy; Buying a Home; Housing Recovery; Selling a Home.

California had statewide estimated sales for September (the latest month available) of 40,317 including new and resale houses and condos.  That number is up 6.1% from 37,988 in September a year ago.  A number that is staying fairly consistent throughout the state and held true for

Southern California is that approximately half of all sales are bank owned properties.  The overall median price in California dropped to $283,000, down 6% from the previous month and the median for

Orange

County dropped to $425,000, a drop of 25.4% from a year ago.  The total number of sales for O.C. was 2,667, an increase of 62.3%.  The break down of those numbers is as follows: 1,732 single family resale, 750 condos, and 185 new homes.  Housing construction will not rebound much from the lows of 2008.  According to the Kiplinger California Letter, “The latest Construction Industry Research Board report forecasts…work to start on only 74,000 homes, about half of them condos.  By contrast, there were 113,034 housing starts in 2007 and 212,960 in 2004.”  (Dataquick)

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11May2008

Buying Bank Owned, FHA Loans and the Whole Enchilada

Posted by staceysloan under: Housing and Economy; Buying a Home; Housing Recovery.

There is a lot of conflicting information out there.  Have foreclosures peaked?  Maybe not everywhere, but Orange County is getting close.  The banks took possession of 698 properties in March, down 4% from February and down 13% from January. (Source:Dataquick)  They could spike again, slightly, over the next few months but indications would be that the number is stabilizing.  Some reasons are that more and more lenders are developing work out programs, loan modifications and loan relief.  Short sales are still out there but frankly they are the riskiest bet for a buyer.  You could be tied up for weeks waiting for a response from a lender, unlike a bank owned which is listed for a set price and is ready to go.  Remember, however, that most bank owned properties are sold “as is” and “buyer beware.”  They will need work and patience. Don’t expect to lowball these properties either as multiple offers are starting to make an appearance on these already price adjusted homes.  I want to say a word about FHA loans.  The loan limit on this product has risen to $729,000 in Orange

County.  It allows for a 3% down payment or 5% if it’s a “jumbo lite.”  The money can be gifted and need not be seasoned.  It is available for refinance up to 97% loan to value for rate and term.  This is a viable option for refinances if some of your equity has been lost.  Please call me for any questions on any real estate matter.  I am your expert on “the whole enchilada!”

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15February2008

Actual Numbers for January 2008 Sales in Orange County

Posted by staceysloan under: Housing Recovery.

The total number of houses sold was 1,731 and included 972 single-family, 325 condos and 434 new homes.  There were still the most sales in the over $700,000 price range with 533 and only 299 in the lowest category of under $400,000.  Notices of Defaults are skyrocketing, indicating the sub prime debacle has hurt Orange County, but nothing like it has hurt the Inland Empire and Los Angeles County.  The total number of Defaults was 1,895 for Orange County and actual foreclosures were 644.  These numbers are interesting because the ratio of 3 to 1 on NOD’s to Foreclosure has remained consistent for months.  Only 1 in 3 NOD ends up in foreclosure.

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