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California Short Sales, Foreclosures, REOs Los Angeles, San Diego, Riverside & Orange County Short-Sales Listings
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24 Aug 10 California Home Sales Falter

California real estate falters again as California short sales and foreclosures continue to mount.  Even as interest rates for California mortgage loans continue to break records each month, new home transactions in the state remain sluggish at best.

New California Home

California home sales plummeted in July, and many economists had forecasted a robust summer for a state that desperately needs the housing sector to rebound.  The downfall of the California housing industry last year was worse than previously reported, according to a key industry report released Wednesday. New home construction in California still contributed $13.8 billion to the state’s economy and employed nearly 77,000 workers in 2009, but that’s 80% lower than the market peak in 2005.

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09 Aug 10 Ladera Ranch Real Estate Co Buys Loan Portfolio

Ladera Ranch is beautiful planned community in South Orange County that has been devastated by short sales and home foreclosures.  Ladera Ranch short sales remain at the higher end of the spectrum of the county with an increased number of REO , short sales and foreclosures per 1,000 houses.  South Orange County short sales continue to be a problem for banks that own a high volume of loan portfolios in the region.

Armed with at least $100 million to spend in 2010, Ladera Ranch, Calif.-based G8 Capital has acquired a 19-property loan portfolio of multifamily housing in South Florida. The all-cash transaction closed in less than two weeks for a portfolio of 13 performing loans and six non-performing mortgage notes.  The company’s approach with non-performing home loans and underwater performing loans is to work closely with the borrower to assess their situation and identify their interests.  

G8 provides loan workout solutions that may include a short sale, obtaining a deed in lieu of foreclosure or a loan modification. Should G8 Capital become the owner of the home through a foreclosure or negotiated workout, its team makes necessary physical improvements and brings in local property management to stabilize the asset.

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04 Aug 10 Orange County Short Sales Rise Slightly but Southern California Short Sales Rise Dramatically

Once again Southern California short-sales rose significantly.  Orange County short-sales had the smallest rise in short-sales and foreclosures, but they still trended upward which is not a good sign for the local housing markets.  The number of transactions in which a home sells for less than the owner owes the bank is up 74% in the region this year, mainly due to a doubling of those California short-sales in the Inland Empire, the Southern California Multiple Listing Service reported.  During the first five months of 2010, the four-county region had 12,906 short sales, up from 7,405 in the same period of 2009, Southern California MLS figures show.

Short sales have been rising as mortgage lenders become more amenable to approving deals rather than letting homes go through a costly foreclosure.  Last year, when lenders were more gracious with loan relief, short-sales were down, but as banks and lenders started extending less loan modification plans in 2010, we saw a significant increase in short-sales.

Here’s how the negative housing stats break down in, Los Angeles, Riverside and San Bernardino and Orange County short sales.

  • Riverside County had 3,444 short sales this year, the second-highest number in the region. That’s up 116% from 2009, when the county had 1,593 short sales.
  • San Bernardino County short sales increased 96.7%, to 2,089. During the first five months of 2009, the county had 1,062 short sales.
  • Los Angeles short sales led Southern California with 4,462 short sales and that’s up just 55.5% from the same period in 2009, when there were 2,870 such sales.
  • Orange County short sales had the lowest percentage gain: OC short sales were up 54.8% to 2,911 short sales. The same time last year, O.C. had 1,880 such sales. San Clemente and Ladera Ranch Short Sales rose most significantly in South Orange County.
  • Overall, the region has 29,242 distressed sales this year so far, down 24.4% from the first five months of 2009 due mainly to declining sales of bank-owned homes.
 California short sales

Overall, bank-owned home sales dropped to 46.1% to 17,233 this year.

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01 Feb 10 SEC Charges 2 California Advisory Firms with Improper Short Sales

Two California investment advisory firms were charged with improper procedures for short sales today by the Securities and Exchange Commission.  Palmyra Capital Advisors LLC, which lists $21.7 million in assets in its ADV disclosure form, profited in three of its managed hedge funds by violating short-selling rules, the SEC alleged. The regulator claimed it found that the firm made California short sales in 2008 in advance of a public offering by Capital One Financial Corp., resulting in improper profits of $225,500.

AGB Partners LLC, which lists $10 million in assets, and its principals, Gregory Bied and Andrew Goldberger, allegedly netted thousands of dollars by shorting in advance of their purchase of stock in a secondary offering, according to the SEC.  Both firms agreed to settle the SEC’s charges without admitting or denying its findings.

Palmyra Capital consented to be censured and pay more than $330,000 in disgorgement and penalties. AGB Partners, Mr. Bied and Mr. Goldberger consented to be censured and pay more than $50,000 in disgorgement and penalties.  An attorney for Palmyra could not be reached for comment. ABB Partners’ attorney, Hardy Callcott of Bingham McCutchen LLP, declined to comment.

08 Jan 10 California Short Sales and Foreclosures Continue

Local realtors continue to report high activity for California short sales and foreclosures. California mortgage rates are starting to rise and many insiders are saying they will be continue to rise unless government extends low mortgage rate programs or starts new ones.  Unemployment is continuing to stay around 9% and there are more layoffs from 2 large companies this week and California is faced with more budget cuts to our already strapped state.

What does this mean for California homeowners?

Well with more people losing jobs that will increase home foreclosures and bankruptcy filings that are for sure.  Which means home prices could either fall again with the flood of foreclosures or they will stay where they are.  We would anticipate them falling if the next round of foreclosures on the market if they are anywhere as big as 2007 and 2008.  California Short sales will continue to be strong, we will see about the same amount of standard home sales and as far as homeowners keeping their homes with loan modifications I just don’t have much faith in, I don’t think the amount of successful loan modifications will change that much.  Already hard hit areas like San Diego, Inland Empire, and Merced Counties could face more devastation with this news.  These areas have started getting better with buyers moving in to foreclosed houses and starting to bring communities back to life.

Minutes of the Fed’s December meeting showed a few members of the central bank’s policy committee thought additional mortgage loan buying might be desirable under more adverse conditions.