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California Short Sales, Foreclosures, REOs Los Angeles, San Diego, Riverside & Orange County Short-Sales Listings
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15 Mar 09 San Diego Home Values Hurting Local Homeowners

A recent analysis from DataQuick shows that more than one-quarter of all homes in the San Diego region are worth less than the owners owe on their mortgages.   Local inland San Diego communities generally were hit hardest by foreclosures last month. The ZIP code with the most foreclosures in the county in January was south Chula Vista’s 91911 with 66, a year-over-year increase of 32 %, DataQuick reported.

 

Home values in the San Diego area have fallen for six straight quarters. Since the third quarter of 2007, San Diego values are down almost 10%. San Diego values at the end of the fourth quarter of 2008 were at about the same level as the first quarter of 2005. Many real estate insiders believe that 2009 will see the bottom of the market which is good news for San Diego Housing.

 

San Diego Housing Buzz publishes new home sales, foreclosure sales and short sales reports.  Learn all about the buzz happening with the market in San Diego.

17 Feb 09 Foreclosures & Short Sales Dominate Home Sales

A recent CNN Money article reported that home values nationally had completely “collapsed” and sales of foreclosed and “underwater” homes now dominate many housing markets, according to a report released Tuesday. The report, from Zillow.com, a real estate Web site, revealed that with foreclosures soaring, nearly 20% of the country’s home sales in 2008 were of bank owned properties that were repossessed in foreclosure or short sale. Another 11% were short sales, in which homeowners owed more in mortgage debt than their properties were even worth. Madera, California, had the highest percentage of these distressed sales: 54.6% of all housing transactions were involving foreclosed homes and an additional 3.4% came from short sales.

In Merced, 53.4% of sales were home foreclosures and 4.8% were California short sales. In nearby Stockton, 51.1% were foreclosures and 5.4% were short sales. “As more markets turn down and markets that were already down go deeper, the pace at which value is being erased from the U.S. housing stock is rapidly increasing,” said Stan Humphries, Zillow’s vice president in charge of data and analytics. To give you ideas of just how fast home values are depreciating, a recent Zillow home value report indicated that “more home value was wiped out in the 4th quarter of 2008 than was eliminated in all of 2007,” Humphries said.

About $3.3 trillion in home equity was erased in 2008, with $1.4 trillion of that wipeout coming in the fourth quarter alone, according to Humphries. More than $6 trillion in home equity has disappeared since home values hit their peak in 2005. These home equity losses have buried many homeowners underwater, where they increase significantly for home loan default. Unfortunately these struggling homeowners do not have the option of cash out refinancing or taking out a home equity loan or second mortgage to raise capital needed to pay medical bills, credit cards and mortgage payments. Bankruptcy, debt settlement and consumer credit counseling figures continue to soar.

A according to Zillow, 17.6% of all homes are now underwater in the United States. Of those under-water homes, 41.2% of these mortgage loans came from homes purchased in the past 5 years. The worst value stricken cities are located in the where the sun shines bright. In Las Vegas, 61.4% of all residential properties are underwater. Because so many houses are worth less than their home loan balances, an increasing number have to be sold short. But short sale transactions still take a long time to close, because most lenders are unable to keep up with the rising demand of loan modification requests. Mortgage lenders may not approve short sales for months. The deals cannot go forward without their approval, because the banks must agree to forgive the difference between what they are owed and what the sale brings in. As the time it takes to arrange short sales lengthens, they become harder to complete.

Les Christie wrote about one example of how home sales declines can also kill a short sale occurred recently in Phoenix. Curtis Johnson, a real estate broker there, worked with a health care worker whose hours were being cut and who could no longer afford her mortgage loan. She fell behind on her mortgage payments and decided to sell the home. Johnson was able to find a home buyer willing to pay $183,000 and got a FHA loan approved by a lender. The owner confidently moved out, got a new place and started a new life. But the lender folded and the mortgage went to a new servicer, who took six weeks to approve the deal. “Unfortunately, the buyers who were approved were no longer interested because the real estate market declined so rapidly,” Johnson said. “They wrote a new home sale offer, which was significantly lower than the original offer but it was time to punt and start over.” See original article >

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03 Feb 09 California Home Prices Fell 42%

Bloomberg released a report revealing that California home prices plunged 42 % in December from a year earlier as the U.S. housing slump deepened and home foreclosures hit record levels. The median price for a single-family home in the most populous U.S. state dropped to $281,100 from $480,820 a year earlier, the Los Angeles-based California Association of Realtors said today in a statement. “The decline in California home prices has brought the cost of housing more in line with household income, improving affordability across the state,” Leslie Appleton-Young, the association’s chief economist, said in the statement. “This should be especially helpful for first-time buyers who can qualify for a home loan.” More than 236,000 homes, or 2.8% of California’s housing stock, were foreclosed on in 2008, MDA DataQuick said today. Foreclosed properties tend to sell at a discount of 25% or more, and California home sales rose 85 % in response to last month’s drop in prices, the Realtors association said.

Daniel Taub’s article indicated the number of existing single-family detached homes sold soared to 544,580 on an annualized basis from 294,520 a year earlier, the group said. The median number of days it took to sell a property dropped to 46.1 days in December from 66.7 days a year earlier. The Realtors’ Unsold Inventory Index, which indicates the number of months needed to deplete the supply of homes on the market at the current sales rate, dropped to 5.6 months from 13.4 months a year ago.

Mortgage Loan Defaults

California mortgage defaults dropped 7.7 % in the fourth quarter after the state enacted a law to delay foreclosures, MDA DataQuick said in a separate report today. Homeowners in the state received 75,230 default notices in the fourth quarter, down from 81,550 a year earlier. Fourth- quarter defaults were down 20 % from the previous three months, according to the San Diego-based research company. Kelly Media Group President, Jason Cardiff commented, “When borrowers are in line to renegotiate their mortgage, most lenders don’t report loan defaults even if the borrower is behind 6 months.” Cardiff continued, this means “We need to be extremely cautious when considering foreclosure data and housing reports.”

A law that requires mortgage lenders to discuss ways to avoid foreclosure with California borrowers before filing a default notice went into effect in September. Defaults plunged to 14,995 that month, and were back up to 39,993 in December. `No one expected defaults to stay at the much lower levels we saw immediately after the new law took effect,” MDA DataQuick President John Walsh said in a statement.

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19 Jan 09 Southern California Home Sales up 50% but Most Are Foreclosures

California Short Sales continue to close at a rapid pace, while many home foreclosures have been slowed by the recent trend of loan modification plans. Recent reports suggest that most mortgage lenders continue are accepting reasonable requests for home financing relief from loan modification companies and distressed homeowners. In a recent Reuters article, Lisa Baertlein evaluates the significance of recent reports that December home sales in Southern California jumped 50.5 % from the year earlier. The DataQuick report also indicated that the median price fell 34.6 % to $278,000 as homebuyers snapped up foreclosed properties.

The area’s median price, which reflects the midpoint of sale prices, hit $505,000 in mid-2007, DataQuick said. A total of 19,926 new and resale homes and condominiums were sold and purchased last month in the 6-county region that is the most heavily populated area in the state of California. The area, including such cities as Los Angeles, San Diego and Riverside, recorded 13,240 sales during December 2007. The median price paid for homes sold in Southern California hit $278,000 in December, down from $425,000 in December 2007. DataQuick said the drop in the median price “overstates the decline in home values” since more affordable homes in the foreclosure-hit inland markets accounted for a large portion of sales. The Southern California foreclosure sales accounted for 55.7 % of December’s re-sales, up from 24.3 % in December 2007.

California’s residential real estate market was one of the most expensive in the US during the years-long housing bubble. The state is now struggling with one of the country’s highest foreclosure rates after many buyers got in over their heads with debt Formerly sidelined buyers are rushing to snap up foreclosed homes, but many would-be buyers in expensive markets remain on the sidelines because financial institutions are reluctant to make so-called “jumbo mortgage loans required to pay for homes in California’s many high-price neighborhoods. John Walsh, president of DataQuick said, “Mortgage interest rates last month were near record lows … It does look like the spigot is being opened a little bit, at least for reduced home purchases.” Read the complete article.

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06 Jan 09 Short Sales in California May Slow with Low Rates and Mortgage Relief

According to former Ditech executive Josh Emmons, “The increased consumer awareness of foreclosure prevention alternatives like loan modifications has reduced some of the short sale market-share.” Still many real estate evaluators expect a bumpy road for 2009 with property values forecasted to decline in double digits across the state. California short sales continue to dominate the Southern California housing market. However many believe we will see a turn of the tide for the mortgage business.

KMG President, Jason Cardiff remains optimistic of a possible rebound for the housing sector in 2009 because of the significant efforts from the mortgage powerhouses to lower interest rates and make credit more available for refinancing and new home financing.  In a recent Real Estate Related News article Jason Cardiff said, “2009 may see the housing sectors and home financing markets rebound after all.” He continued, “The Federal Reserve showed their commitment with record low rate cuts to fight deflation and many financial insiders believe the President Elect, Barrack Obama will be aggressive in an effort to stem the foreclosure mess.” Read the complete story > Jason Cardiff Remains Optimistic of 2009 Mortgage Rebound

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23 Dec 08 California Homebuying Frenzy

The LA Times. “We’ve pretty much blown through the first couple of stages of grief with regard to the Southern California housing bust. There’s no room left for denial now that home prices in the Southland are down 44% from their peak in 2007, and there’s not much use for anger. Now we’re bargaining.”

“Pretty typical is a one-bedroom, one-bathroom house on East 98th Street in South Los Angeles, near the intersection of the Harbor Freeway and Century Boulevard. Its listing calls the 738-square-foot house ‘great for a growing family.’ The seller wants $85,000 for the house, which sold in 2006 for . . . $365,000.”

“Throughout Southern California, real estate agents say and sales records confirm that attractively priced foreclosed houses sell quickly and does not mean prices will go back up any time soon. ‘I am absolutely positive it’s still going down,’ said Dennis Findly, 18-year veteran of Inland Empire real estate. ‘If you’re looking at a home like this for $250,000, it looks like a good deal, but a year from now it could be $220,000 or $230,000,’ he said.”  California loan modifications and foreclosure statistics continue to send shock waves through the Westen real estate communities.  Read the complete Housing Bubble article > A Bidding War For Buyers In California.

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07 Dec 08 Home Sales Drop

“Some servicers keep a loan in a delinquent state until they see customers carrying through on their agreements, and then they’ll switch it to performing,” Brinkmann said. U.S. home sales and prices began to tumble in 2006 after a five-year boom, dragging the economy into a recession that began in December 2007, according to the National Bureau of Economic Research.

The median home price in the fourth quarter probably will be $190,300, down 19% from the record $226,800 in 2006’s second quarter, according to a Nov. 24 forecast by Fannie Mae, the world’s largest mortgage buyer. Purchases of existing homes in October slid to an annual rate of 4.98 million, lower than forecast, the National Association of Realtors said in a Nov. 24 report. The median price fell 11.3% from a year earlier, the most since the group began collecting data in 1968. Short sales in states like California have become all too common.

Federal Reserve Chairman Ben S. Bernanke yesterday urged using more taxpayer funds for new efforts to prevent home foreclosures, saying the private sector is incapable of coping with the crisis on its own. The Fed chief outlined four possible options, including buying delinquent mortgages and providing bigger incentives for mortgage refinancing. He called for addressing the “apparent market failure” where mortgage lenders aren’t offering loan modifications even in cases where it’s in their own economic interest to do so. Bernanke’s proposed changes would go beyond those announced last month by Housing and Urban Development Secretary Steve Preston, who oversees the FHA. The agency will change the amount of the loan a lender must forgive and allow banks to extend the payback time of a mortgage.

The bankers’ report cites percentages without providing the number of mortgage loans. The U.S. had $11.3 trillion of outstanding home loans at the end of June, according to Federal Reserve data. Mortgage lending fell to $80.8 billion in the second quarter, down from $764 billion a year earlier, the Fed said. The Mortgage Bankers report is based on a survey of 45.5 million loans by mortgage companies, commercial banks, thrifts, credit unions and other financial institutions.

01 Dec 08 FDIC Mortgage Modification Versus Private Loan Modification Companies

Many California homeowners are not aware of the State’s position on foreclosures.  The Golden State’s Governor continues to promote a Foreclosure Moratorium for California.  Legal Loan Relief reminds homeowners that “whether they are upside down with a home loan balance larger than their house value or if they simply need a lower, more affordable payment that they should consider a loan modification as one of the best foreclosure prevention methods.   Read Complete Article >  Mortgage Loan Relief Page.

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30 Nov 08 Home Foreclosures Hindering California Economy

In addition to the US Treasury Secretary’s policy reversals and changing rationales on how to stabilize the financial system, we now have further proof that Henry Paulson has no idea what he is doing. His statement yesterday that ‘Nothing is more important to getting through this housing correction than the availability of affordable home loan financing,’ is simply wrong. The problem is not that people can’t buy homes the problem is we can’t keep people in their homes. In other words, ‘It’s the foreclosures, stupid.’ Watch this video with California Governor Promoting Foreclosure Prevention Methods >

The colossal and continuing wave of home foreclosures caused the disintegration of numerous banks and financial institutions, destabilized the housing market, and have resulted in national and global financial chaos. In August of this year, California experienced 101,000 foreclosure filings, which equated to about one filing every thirty seconds. At the same time, our nation experienced about one foreclosure filing every ten seconds. Home loan defaults, short sales and all its consequences are causing the credit and liquidity crisis, not the other way around. Until we solve the foreclosure problem, we will continue to have credit and liquidity issues.

AIG, Citigroup, and numerous other financial institutions are collapsing because of defaults and loan modifications. Yet the Treasury Secretary continues to believe that a top-down approach where we continue to throw money at Wall Street will somehow solve the problem. Using hundreds of billions of dollars of taxpayer money to buy distressed mortgage securities from Wall Street firms does nothing to help distressed homeowners stay in their homes. None of the Treasury Secretary’s approaches are targeted at preventing foreclosures. That is a massive and unforgivable strategic and tactical error.

It is time to listen to FDIC Chair Sheila Bair, who since last year has repeatedly identified home foreclosures as the root cause of the economic crisis. Her foreclosure prevention policies of forcing Wall Street to accomplish home loan modifications to keep people in their homes is one of the few sensible solutions that will help our economic recovery begin.

27 Nov 08 San Diego Real Estate Market Update

According to California realtor, Suzanne Hefni-Pyle, the San Diego housing market is displaying signs of revival as home-buyer activity increases. Now in 2008, the markets have finally adjusted down in prices close to 2004. Price ranges under $400,000 are seeing multiple offers coming in, actually driving the sale price higher, in some cases as much as $20,000 over the original listed prices. They tend to be on bank-owned and short sale California properties. The standard listed properties are where Suzanne reported finding a tremendous savings negotiated down from the asking price for our buyer clients.

The high end market of $900,000 and up price ranges continue to soften, because the jumbo mortgage loan guidelines continue to worsen. It remains a “great buy” and likely has room for more negotiating, to attain a property that has adjusted down to 2004 prices. This current market has provided more inventories sitting on the market longer than ever, or recent years past, creating this great buyers market. Now, with the rising inventory of foreclosure homes, it is amazing some of the price reductions out there. If you would like a search to the MLS, you can do on your own anytime, change your search criteria anytime, search 24/7 or, contact me and I will get your account up and running today, to see for yourself, the abundance of home inventories to choose from right now in San Diego County.

Suzanne offers a free search customized by your needs: Search by, foreclosure, short sale and bank-owned properties, luxury Homes, ocean-front, ocean view homes, condos, townhomes, vacation homes, ranches, equestrian homes and more.

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