Archive for the ‘Foreclosure’ Category

September 2011 Home Sales Statistics – 4 County Pie Chart


Quick Foreclosure Market Update – Must Read

Just thought this would be useful information for you all. This comes from RealtyTrak and Wells Fargo at the AREAA national conference in SF. This session is about the current REO market.

In a nut shell the first wave of foreclosures in 2006-2008 were caused by the subprime loan market. This created the economic down turn, increasing unemployment. Unemployment is what caused the current wave of foreclosure we are seeing now. Adjustable rate loans may be third wave of foreclosures which we will know by spring of 2012.

We are not selling enough homes to move current inventory of foreclosures out there which is keeping home prices down.

Inability to sell new homes(which are always highest in price drive up prices) is also what is keeping prices stagnant.

Quick Foreclosure Market Update - Must Read

There are currently 800,000 foreclosures on banks books with less than 30% actually listed on the market. Another 800k are currently in foreclosure, 1.3mil in severe delinquency. 3.5 mil in some stage of delinquency.

The market in terms of pricing will probably bottom out in 2011, remain low through 2012 and 2013 as we work through selling off the foreclosure through inventory. Possibly a rise in pricing by 2014.

Banks are facing adjustable rate mortgages as being the third wave in foreclosures, however they have many options to work through this by extending loan terms, forgiving principle, etc. They want to work this out as they see these loans as their highest risk factor for delinquency in the future.

The Year of the Short Sale: 7 Tips to Finding Your New Home at Discount

RISMEDIA, August 17, 2010—Real estate professionals nationwide are calling 2010 “the year of the short sale,” where homeowners who owe more on their properties than what they are worth sell at deeply discounted prices—with the blessing of their lender.

Here is how to go about successfully buying a short sale:

1. Search for short sale properties
Most short sales are listed by real estate agents. You will find these listings on local websites and in MLS feeds. Some lenders have complained about advertising that identifies the home as a short sale, because the lenders feel it puts them at a disadvantage when it comes to home pricing. This is accurate, as buyers generally offer less when the property is advertised as a short sale.

Read the listing carefully. Agents slip in words that identify the listing as a short sale. Look for the following terms:

• Subject to bank approval
• Pre-foreclosure
• Notice of Default
• Give the bank time to respond
• Preapproved by bank
• Headed for auction

2. Select a real estate professional
Professionals with short sale experience can help you navigate the short sales process in your local market. The buying process is often far more complex—and far longer than typical sales–so a trained ally on your side can make your experience successful.

3. Investigate the mortgage and liens on the property
Here’s where a good short sale real estate agent is worth his or her weight in gold. Uncover how much the mortgage is worth. Find out how much the current owners paid and when. Find out how many liens are on the property. Find out which lender is the primary lien holder. Research comparable sales in the area.

4. Have a home inspection
Short sales are typically sold “as is,” with no contingencies allowed. That short sale is no bargain if you discover—after the closing—that it requires major, unexpected repairs. A thorough home inspection will provide a clear view of the home’s condition, allowing you to make educated decisions on whether or not to purchase.

5. Write a complete offer
Remember, the lender—not the owner selling the property—is calling the shots and decides whether your offer will be accepted, rejected or countered. Helping the lender, whose agents may be overloaded with a glut of short sales, fully understand the financial picture will support your bid. Include the following materials with any short sale offer:

• Cover letter
• Signed owner/borrower short sale purchase agreement
• Seller hardship letter
• Seller payroll stubs
• Two years of seller tax returns
• Market comparables
• HUD-1 closing net sheet
• Repair cost estimate
• Pictures of property

6. Negotiate
Like any real estate transaction, successful negotiation is required to strike a deal. If the lender rejects or counters your written offer, you’ll have to negotiate with the lender by making a higher offer. Be prepared to offer more money to close the deal, or to walk away if it doesn’t make financial sense.

7. Be Patient
Short sales, which have increased in volume and frequency, are overloading some lenders. Be aware that processing and decision-making times for some lenders can be quite long—up to a year or more. Decide if you have flexibility in your timing, and if so, know that you may be waiting for awhile.

Dan Steward is president of Pillar To Post Home Inspection.

For more information, visit

RISMedia welcomes your comments and questions. Email




Foreclosure filings, outcomes and inventories dropped across the board from April to May. Foreclosure filings also declined substantially year-over-year with Notice of Default filings down 43.3 percent and Notice of Trustee Sale filings down 35.8 percent. The only significant increases from the prior year were Cancellations, up 141.3 percent, Sales to 3rd Parties, typically investors, up 75.4 percent, and Time-to-Foreclose, up 30.5 percent from May 2009.

CLICK HERE for full report.

Financials on Short Sales Vs. REO’s

FINANCIALS ON SHORT SALE VS. REO’s: Lenders loss severities for properties sold through a short sale are 13-26% lower vs. loss severities for REO sales. In Addition, data shows that short sales cost bondholders about 1/2 the amount in fees and advances as REO sales, saving roughly $16,000 per sale.


HUNTINGTON BEACH, CA ~~~ Last Weeks Market Movement




CLICK HERE to download PDF of March Foreclosure Report for CA.

As always, Contact Linda Ginex For Any Real Estate Related Needs or Questions.

California Waives State Taxes on Forgiven Mortgage Debt

Californian waives state taxes on forgiven mortgage debt for those who have sold their homes as short sales are allowed to exclude from taxable income the amount that was still owed to the mortgage company. The legislation also applies to homeowners who have received debt-reducing loan modifications.

The new law allows most taxpayers to exclude canceled mortgage debt income of up to $500,000 on their principal residence, or up to $250,000 for married individuals filing separately. It applies to debt forgiveness in 2009 through 2012.  The law excludes second homes, business and investment property.

The law brings California state tax policy largely in line with the federal Mortgage Forgiveness Debt Relief Act of 2007, which is in effect through the tax year 2012.

Excerpt taken from DS News by Carrie Bay

BofA Completes More Than 12,000 Permanent HAMP Mods in a Month

According to Bank of America’s monthly Home Affordable Modification Program (HAMP) progress report to the Department of Treasury, the Charlotte, North Carolina-based bank has completed nearly 33,000 permanent HAMP modifications, including more than 12,000 since the previous monthly report.

As of April 8, 2010, 32,900 Bank of America customers had been placed into completed mortgage modifications with affordable payments under HAMP, up from 20,666 reported a month earlier. This marked the bank’s most productive month to date.

“We anticipated the momentum of completion of HAMP modifications would build as we entered spring, and we’re seeing that,” said Jack Schakett, loss mitigation strategies executive for Bank of America. “As more homeowners have completed their required trial payment period and provided the information necessary for underwriting, an increasing number of Bank of America customers are receiving long-term assistance through the government initiative and the efforts of our associates.”

In addition to its progress in HAMP, the bank has also stepped up its participation efforts in other facets of the government’s broad Making Home Affordable initiative. In January, Bank of America was the first servicer to sign an agreement to participate in the HAMP second lien modification program, and on April 1, the bank became the first major servicer to begin extending 2MP modification offers to homeowners with completed first lien modification under HAMP.

Bank of America also said it is currently implementing the Home Affordable Foreclosure Alternatives program to

streamline short sales for eligible homeowners who cannot complete a HAMP modification. In addition, the bank has refinanced more than 190,000 mortgages under the Home Affordable Refinance Program to benefit homeowners, including more than 100,000 loans with loan-to-value ratios exceeding 80 percent, which makes them difficult to finance outside of government-supported programs in today’s tight credit market.

While Making Home Affordable is at the center of Bank of America’s homeownership retention efforts today, the bank has completed another 535,000 modification outside of HAMP through proprietary programs since January 2008. And last month, Bank of America announced enhancements to its National Homeownership Retention Program unveiled in October 2008 to assist certain former customers of Countrywide who have types of loans that have proven to be at the greatest risk of default.

Excerpt taken from DS News written by Brittany Dunn