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Foreclosure activity slowed again in July, except for a slight increase in Sold to 3rd Party auction sales on the courthouse steps. Notice of Default filings fell by 11.7 percent from June, and 30.6 percent from a year ago. Notice of Trustee Sale filings were down 5.4 percent from June, and have dropped 25.3 percent from July 2010. Cancellations decreased for the third consecutive month, with a 5.3 percent drop compared to June, and were down 32.0 percent year-over-year. Foreclosures going Back to Bank (REO) declined 4.0 percent from June, down for the second month in a row. Foreclosures Sold to 3rd Parties nudged up 1.2 percent from June, and are at the same level as this time last year. Time to Foreclose decreased slightly from June, down less than one percent to 313 days; although year-over-year remained up 19.5 percent. 3rd Party investors continue to resell inventory faster than banks, with the average at 131 days compared to the average Time to Resell for Banks at 235 days.
View all California stats by state, county, city or ZIP
Foreclosure Report – July 2011
Short Sale Soundoff: BofA to accept back-up offers on short sale listings
Bank of America announced this week it will accept back-up offers on short sales and will allow the back-up offer to take over if the first buyer does not complete the transaction, without requiring the process to start again.
Under this new guidance, agents will no longer have to initiate a new short sale in Equator if the original buyer walks away from the transaction. Instead, the agent can continue with the original transaction in Equator and work with the same short sale specialist. The file will remain open and the paperwork that has been submitted will remain active. However, the buyer’s qualification and the offer price will need to be reviewed again if a back-up offer is used.
This new process applies only if there’s an available back-up offer when the original buyer does not follow through with the transaction. If a back-up offer is not ready to be submitted, the short sale will be declined. In that case, agents should return to marketing the property and initiate a new short sale in Equator once another offer is received.
In December, C.A.R. leadership met with representatives of Bank of America and asked the lender to accept back-up offers without starting the process over again. C.A.R. also has raised this issue with Fannie Mae, Freddie Mac, and Wells Fargo, and hopes they will follow Bank of America’s lead with this process.
Get your FREE Consultation on Short Sale and Loan Modification and FREE Short Sale Service by calling 310-562-0310 or click here
Lenders prepare for lower loan limits; stop accepting certain applications
In anticipation of the expiration of current loan limits on Sept. 30, 2011, Bank of America has decided to stop accepting conventional and government applications for loan amounts that will exceed the permanent loan amounts. The deadline to submit loan applications was July 1.
According to an email from Bank of America, conventional loans that exceed the permanent loan limits will now be required to use non-conforming programs.
Barring Congressional action, the maximum FHA, Fannie Mae, and Freddie Mac conforming loan limit will decline to $625,500 beginning Oct. 1, 2011, from the current $729,750 limit, though the majority of counties will fall far below the $625,500 maximum. The conforming loan limit determines the maximum size of a mortgage that FHA, Fannie Mae, and Freddie Mac government-sponsored enterprises (GSEs) can buy or guarantee. Non-conforming or jumbo loans typically carry a higher mortgage interest rate than a conforming loan and require a higher down payment, increasing the monthly payment and negatively impacting housing affordability for California home buyers.
How to buy a foreclosure
How to buy a foreclosure
Many buyers, especially first-timers, hope to purchase a foreclosed property at a bargain price. While purchasing a foreclosed home can be a wise choice for some buyers, it is important that buyers understand the differences in buying at different stages of foreclosure and be prepared to take on the challenges typically associated with each.
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There are three basic stages of foreclosure in California: Pre-foreclosure, trustee’s sale, and repossession, often called an REO or real estate owned by the bank.
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Pre-foreclosure homes are in the foreclosure process, but have not yet been auctioned. Owners of pre-foreclosed homes often try to sell the properties because they are “underwater,” meaning they owe more on the mortgage than the home currently is worth. Many homeowners attempt to sell via short sale, where the lender must agree to accept less than the amount owed on the mortgage. Buying at this stage of foreclosure often is a complicated and slow process. However, buyers of pre-foreclosed properties often are given the opportunity to inspect the home prior to purchasing, whereas this is not always the case when buying at other stages of foreclosures.
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The second basic stage of foreclosure is the public auction at a trustee’s or foreclosure sale. Homes in this stage often are well priced, but also come with challenges to buy. These homes may not be available for inspection and buyers may later discover the property needs numerous repairs. As a result, many of the homes at auction are purchased by investors and contractors who have experience working with homes needing numerous repairs, or taken back as REO by the foreclosing lenders.
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If a home does not sell to a third party at the trustee’s auction, the bank takes the property–the final stage of the foreclosure process. Although homes in this stage typically do not offer buyers the best prices, buyers generally can perform a thorough inspection of the property prior to closing.
Please click here to see more information.
10 reasons to buy a home
| September 30, 2010 | |
10 Reasons to Buy a HomeWith newspaper headlines declaring that foreclosures are on the rise, short sales are difficult to navigate, and the rate of homeownership is on the decline, some home buyers may no longer see the value of purchasing a home. However, there are several reasons why homeownership makes economic, financial, and personal sense.
Please click here to the full article.
Why your first home shouldn’t be your dream homeAffordable home prices and historically low interest rates have created an ideal situation for many qualified first-time home buyers to purchase a house. Despite this opportunity, some buyers may be overconfident and make mistakes during the home-buying process. Please click here to the full article. |
FREE California Mortgage Protection Plan! Stop Worry about Your Job Stability!
Are you still sitting on the sideline from your dream of homeownership because you are uncertain about job security in today’s economy? Are you tempted to take advantage of the current buyer’s market with extremely low interest rate, significantly reduced home price to much more affordable housing, $8,000 federal tax credit, and another $10,000 California tax credit with new construction home purchase? Here in California we have an additional layer of buyer protection to boost buyers’ confidence in home purchase. These days, mortgage payment is almost close to rent in many areas. All it takes is buyer’s confidence in buying. Heck, we all have to live somewhere, so why not own instead of rent? Who ever guaranteed your rent payment and gave you money to rent a place?
Mortgage Protection Plan for First-Time Home Buyers:
C.A.R. launches mortgage protection plan for first-time home buyers. The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) launched the C.A.R. Housing Affordability Fund Mortgage Protection Program (C.A.R.H.A.F. MPP), for first-time home buyers. Through the Housing Affordability Fund Mortgage Protection Program, first-time home buyers who lose their jobs due to layoffs may be eligible to receive $1,500 per month, for six months, to help make their mortgage payments. A qualified co-buyer also can participate in the program, and receive a monthly benefit of $750 per month for up to six months. Program benefits also include coverage for accidental disability and a $10,000 death benefit.
C.A.R.’s Housing Affordability Fund is dedicating $1 million toward its Mortgage Protection Program, and estimates that as many as 3,000 families will benefit from the program this year.
To qualify for the Mortgage Protection Program, applicants must:
- Be a first-time home buyer – someone who has not owned a home in three or more years
- Open escrow April 2, 2009, or later, and close on or before Dec. 31, 2009
- Use a California REALTOR® in the transaction
- Purchase the property in California
- Be a W-2 employee (cannot be self-employed)
To apply for the program, home buyers must request an application for the H.A.F. Mortgage Protection Program from their REALTOR®. For applications and other information on this exciting new program, please download the application and contact us about the process. Please click here for the C.A.R. website information on this program.
First-Time Buyer $8,000 Tax Credit Information: Read here for more information.
California Brand New Home $10,000 Tax Credit: Please click here to read more information and the instruction on the application for this tax credit. Why not buy a brand new home in this buyer’s market when there is additional tax credit? Please see our New Construction Homes and Condos to see what your options are.
Search Bank Owned Deals, Foreclosures, and Homes in the Greater Los Angeles Area at
www.JoeChenHomes.com
California provides Mortgage Protection Plan to Boost Home Buyer’s Confidence! See http://ping.fm/w0X5n
Why not buy brand new home in this market to claim $10,000 California tax credit! See http://ping.fm/kuPJq
