Archive for January, 2010
Sharp Decline in Foreclosure Activity in CALIF
Posted by: | CommentsCalifornia Sees Dramatic Decline in Foreclosure Activity
California foreclosure activity plummeted in December, especially when looked at on a daily average basis, according to the monthly California Foreclosure Report recently released by ForeclosureRadar, a Website devoted to tracking every California foreclosure.
Notices of default dropped 17.5 percent in aggregate, but they actually dropped 32.5 percent on a daily average basis. This percentage difference is due to that fact that December had 22 days on which documents were recorded, versus only 18 in November. In addition, notice of trustee sale filings dropped 23 percent. ForeclosureRadar said this is not simply a regular season decline, as it has not seen a similar drop in recent years.
“The dramatic drop in foreclosure activity may have been a Christmas gift to homeowners,” said Sean O’Toole, founder and CEO of ForeclosureRadar. “However, given rising mortgage delinquencies, it is becoming increasingly clear that foreclosure activity no longer fully represents market realities.”
On an average daily basis, cancellations only increased 3.5 percent. Given the Obama administration’s drive to make trial loan modifications under the Home Affordable Modification Program permanent, this was a smaller increase than expected. Based on the timing of these cancellations, ForeclosureRadar believes 21 percent were cancelled due to statutory requirement that a foreclosure sale be held within one year, thus forcing a cancellation. In addition, tracking Website estimates 61.9 percent were likely due to some form of loan workout, and 17.1 were more likely the result of a filing error.
On a month-to-month basis, pre-foreclosure properties and foreclosure properties scheduled for sale decreased, but year-over-year these inventories saw huge gains. In December, pre-foreclosure properties fell 0.4 percent from the prior month but jumped 55.12 percent from December 2008. In addition, foreclosure properties scheduled for sale fell 2.64 percent from November but surged 117.52 percent year-over-year. However, REO properties did the opposite. Compared to November, REO properties increased 3.41 percent in December but plummeted 34.89 percent from the prior year.
Foreclosures that went back-to-bank declined 28 percent, and those that sold to third parties fell 41.8 percent. A significant decline in foreclosure discounting by lenders appears to be the reason for such a dramatic drop in sales to third parties, ForeclosureRadar said. For most of the last year lenders discounted the opening bid from the amount that they were owed by nearly 40 percent, but in December, that discount dropped to 33.7 percent. In addition, the percentage of sales that were discounted declined from nearly 90 percent in December 2008 to just 75 percent in December 2009.
WORDS TO THE WISE
Posted by: | Comments* Learn like you are going to live forever; live like your going to die tomorrow.
* Punctuality is the courtesy of kings.
* If you are a fisherman don’t give your children fish, teach them how to fish.
* The young man knows the rules but the old man knows the exceptions.
* Be careful what you set your heart upon for it will surely be yours.
* Spend time with your mother; she is cooler than you think.
* Nothing good ever happens after 3:00am.
* Keep your word – reputations are won in inches and lost in miles.
* When you are going through hell just keep on going.
* On matters of style, swim with the current and on matters of principal, stand like a rock.
* Courage is not the lack of fear it is acting in spite of it.
* Hide not your talents. They for use were made. What’s a sundial in the shade?
* Courtesy is as much a mark of a gentleman as courage.
* When you greet a person look them straight in the eyes and shake their hand firmly and solidly.
* Remember first names.
* Be like a duck – remain calm on the surface and paddle like hell underneath.
* Don’t screen phone calls.
* Write thank you notes.
* Hold doors, pull out chairs and easy on the swears.
* Don’t confuse efforts with results.
* If you are a thoroughbred don’t train with donkeys.
* Practice random acts of kindness and compassion often.
* Upsets are usually caused by unfulfilled expectations – be clear with everyone on your and their expectations.
* You will find fulfillment by “pushing through comfort barriers” and obliterating the status quo.
* “Imua”- Hawaiian chant that means whether you know where you are going or not – go and go hard!
Making Sure Wrong Home Isn’t Seized
Thanks to Thomas J. Barrack, Jr. from Colony Capital, LLC
Home Prices Appreciate 25% This Decade Even with Slump
Posted by: | CommentsHome Prices Appreciate 25% This Decade Even with Slump
After the biggest housing boom and bust in U.S. history, prices of existing homes managed to increase by only 25% over the past 10 years, according to the National Association of Realtors. The Realtors reported that median home values rose from $137,600 in November 1999 to $172,600 in November 2009 or 25%. At the peak of the market, the median house price hit $230,300 in July 2006. The latest forecast by NAR economists shows that the median house price will rise 3.6% in 2010 to $178,900, after falling 12.8% in 2009. The economists expect existing home sales will rise 10.8% in 2010 to 5.71 million from 5.15 million in 2009.