Facebook
LinkedIn
TwitterCalifornia
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
Senate Bill 458 Passes…No Deficiency Judgements for Home owners Completing Short Sales
This is HUGE!
Effective, 15 July 2011!
Governor Jerry Brown signed into law SB 458 prohibiting banks, servicers and lenders from pursuing home owners of 1-4 units who choose to short sell their homes.
From California Association of Realtors President Beth L. Peerce:
“The signing of this bill is a victory for California homeowners who have been forced to short sell their home only to find that the lender will pursue them after the short sale closes, and demand an additional payment to subsidize the difference,” said C.A.R. President Beth L. Peerce. “SB 458 brings closure and certainty to the short sale process and ensures that once a lender has agreed to accept a short sale payment on a property, all lienholders – those in first position and in junior positions – will consider the outstanding balance as paid in full and the homeowner will not be held responsible for any additional payments on the property.”
A law was passed last year, 580E, that protected homeowners from 1st lien holders, however, now 2nd and tertiary liens are also covered.
This is a huge step forward for the short sale specialist in California.
You are now legally protected from the banks that did you wrong!
LAW AGAINST SHORT SALE DEFICIENCIES EXPANDED
In a major victory for REALTORS®, Governor Brown signed into law today a C.A.R.-sponsored bill, Senate Bill 458, prohibiting a deficiency after a short sale for one-to-four residential units, regardless of whether the lender is a senior or junior lienholder. Effective immediately for transactions closing escrow from this day forward, both senior and junior lienholders cannot require a borrower to owe or pay for a deficiency in a short sale. This law also prohibits any deficiency judgment to be requested or rendered for senior or junior liens after a short sale of one-to-four residential units. Any purported waiver of this rule shall be void and against public policy.
Although a lender cannot require a borrower to pay any additional compensation in exchange for a short sale approval, the new law does not prohibit a borrower from voluntarily offering a monetary contribution to a lender in hopes of obtaining a short sale. A lender is also permitted under the new law to negotiate for a contribution from someone other than the borrower, such as other lenders, agents, relatives, and the like.
Exceptions to the new law include a lender seeking damages for a borrower’s fraud or waste; a borrower that is a corporation, LLC, limited partnership, or political subdivision of the state; a lien secured by a bond as specified; a public utility lien; and additional rules apply if a note is cross-collateralized by more than one property.
Source: Kris and Kim Darney HREU Short Sale Coaches.
Get your FREE Consultation on Short Sale and Loan Modification and FREE Short Sale Service by calling 310-562-0310 or click here
California Foreclosure Trends – May 2011
CA – Foreclosure Filings
CA – Foreclosure Inventories
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.
-
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.
-
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.
-
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.
-
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.
