Archive for the ‘California’ Category
Los Angeles Foreclosures – An Overview (January, 2008)
Wednesday, February 11th, 2009As per the data released by a leading foreclosure listing agency, Los Angeles foreclosures have seen a rise of 69% in the fourth quarter of 2008 as compared to the same period in 2007. However, in comparison to the third quarter of 2008, there has been a decline of 29%. The number of foreclosure auctions in the third and fourth quarters of 2008 stand at 15,673 and 11,232 respectively.
These figures though are chiefly being linked to the foreclosure law that was effectuated in September, 2008. The high numbers of foreclosure properties in December ’08 (an increase of 110% in comparison with October ’08) are a clear indication of this.
However, not everything is glum and the state of California is set to receive the second largest sum of money as part of the housing aid program (around $529 million), with $33 million earmarked for Los Angeles.
The Los Angeles Housing Department’s head, Mercedes Marquez, said that members of her office have been contemplating on how the funds can be best utilized for quite some time now. She also said that a fair amount of money has been spent in purchasing data and then making comprehensive Los Angeles foreclosure maps so that they can focus on areas that have been affected the worst.
Their main aim, she went on to say, was to buy foreclosure homes, rehabilitate them, and then sell them to low income families, while also providing these buyers with mortgages.
While this might not seem like enough to rectify the ongoing situation, more relief is expected in the form of sterner measures being taken by the new administration. Many are of the opinion that this is a good period to buy amidst the usually cheap Los Angeles foreclosures.
If you do intend to buy amidst these homes, make sure that your research and search is thorough. With more homes continuing to join the already long list, you can do well do exercise some restraint.
Surge in Foreclosures is One of the Reasons Why 2008 is the Worst Year of All Time for Silicon Valley
Friday, January 30th, 2009The housing market of the Santa Clara district has had the worst year in 2008 due to the biggest yearly percentage dive in the prices of home in no less than two decades, comprising an immobile mortgage market and a rise in foreclosure properties.
Moreover, 2008 also shed several billion dollars in impartiality off the valley’s housing stock, as most of the regression came in the inflation of home values in a lower-priced market area.
The mean sale cost of every home from last January to December plummeted to 31.8 percent, which is the biggest decline in their series since 1988, according to MDA DataQuick, a real estate research service.
In addition, because of the decrease in number of sales of high-end houses and a swelling number in low-cost vicinities severely damaged by foreclosures in California, the mean price for resale homes was pulled down to $457,000, something that has not happened since January 2002.
Though foreclosures were popular headlines in the South Bay for 2008, the future of the high-end market remains unknown. Even though the market of more expensive homes has declined and median prices in those vicinities are still indefinite, a different property research service named Marcus & Millichap anticipates higher-end prices to remain stable this year. There will be even less subprime loans and assertive sales tactics, so there will be less foreclosure, which leads to fewer sales.
However, anything is possible in the work market, especially in the mortgage market—from “senseless lending to senseless no no-lending” to a drop in prices of high-end homes, says DataQuick.
As things are quite sluggish on the top end, things are speeding up in the bottom part of the market, thanks to the increasing number of foreclosures sale.
But there is still something to be hopeful about amidst these hard times. There are sales at foreclosure prices, according to Stephen Levy of the Center for Continuing Study of the California Economy.
Half of the homes bought all over the Bay Area last December were actually foreclosures, and 41.2 percent of every single home bought in Santa Clara County were foreclosures, compared with only 8 percent of the previous year. The county surrendered the exceptional profits of the past few years in those sales.
Bay Area Home Buyers Take Advantage of Falling Prices Due to Foreclosures
Thursday, January 29th, 2009In December 2008, about half of the 5,171 existing houses sold in San Francisco Bay Area, California were foreclosures. Because of the increase in California foreclosures, home buyers flock to the Bay Area to take advantage of bargain prices.
According to research firm MDA Dataquick’s real estate report, existing single-family houses in the region’s nine counties have a median price of $330,000, representing a 46.8 percent decline from figures of the previous year.
The median market price for all houses, including new homes and condominiums, also declined by to 43.8 percent to $330,000.
The December total of all existing houses increased by a percentage of 69.6 from the 2007 total of 3,049.
Meanwhile, counties with high foreclosure rate in the region have experienced an increased in sales volume. About 1,384 existing houses were sold in Contra Costa, representing an increased of 152.6 percent compared with the December 2007 figures of 548.
In Solano, 623 existing houses were sold, representing a percentage increase of 185.8 from the 2007 figures of 218.
According to the real estate report, each county in the region has experienced double-digit decreases in median prices due to the rapid increase in foreclosures. It estimated that the decline in existing homes’ median price in Contra Costa was 48.4 percent and 11.8 percent for the city of San Francisco.
The median price indicates the point in which 50 percent of the houses were purchased for more and the remaining half for less. However, it does not reflect the change in market values of homes but rather the composition of houses sold.
MDA Dataquick President John Walsh explained the possibility that half of the decrease in the median market price is an issue of market mix and the remaining half a decline in value.
On the other hand, some experts noted that an increasing number of banks are unloading foreclosure properties at bargain prices. Lawton Associates realtor Stephen Bloom said that 100 percent of bargain deals involved bank-owned distressed properties.
Bloom cautions home buyers on purchasing foreclosed properties, saying that these deals have no or lack disclosures.
California Foreclosures – A Brief Overview
Monday, January 26th, 2009A recently released report has shown that eighty seven percent of the homes in Victor Valley, California that were sold in December, 2008, were in some stage of foreclosure. This has resulted in an ongoing decline in the region’s homes’ median prices; with home foreclosures being sold cheaply by banks and asset mangers dealing in foreclosed homes, so that their inventories burdens are reduced.
As a result of the same trend, the report says that Stockton has seen a fall of 47% in median prices over a period of one year. In December ’07, the median price was $250,000; and in December ’08, this figure came down to $133,000.
The residential real estate markets in other parts of the State are following a similar pattern; many of the homes being sold are affected by foreclosure, and these homes are selling cheaply. While no home owner is pleased with the ongoing pattern, homebuyers who had their plans on hold are now starting to resume their buying activity, with primary focus on foreclosure affected homes.
If you wish to look for California foreclosures, and since you are reading this online, the best place to start your search is the internet. Go through the scores of websites that would give you listings for California foreclosures. Many of these websites further simplify your search by enabling your search to be based on aspects such as price range, zip codes, etc.
You can also opt to go through a real estate agent / broker / realtor, as they often have access to up to date neighborhood specific foreclosure listings. Getting in touch with lenders/banks which deal in home loans can also get you lists of foreclosure homes that they would have on their inventories. Going through legal publications, news letters, newspapers, etc. can also be of help.
Inspecting a foreclosure affected home prior to making an offer is very important. This is chiefly because these homes could have been left unoccupied for varied periods of time, and it is necessary that you personally see what condition they are in, and whether they are worth the price that is being quoted for them.
With there being no short-supply of foreclosure homes in California, you can do well to exercise some caution and restrain. Go through all available avenues before you pick one to live on.
Bleak Prospects for Homebuilders Due to Foreclosures
Wednesday, November 19th, 2008Real estate forecasts made by industry associations, economists, homebuilders and consultants for the year 2009 point to the same realization: 2009 will still be a bleak year for the home building industry due to continued foreclosures and slow sales of home foreclosures.
The North State Building Industry Association and the California Building Industry Association both see 2009 as a bleaker year than 2008 because of the economic downturn and banks’ continued home repossessions which have been constraining sales.
Mike Davis of real estate auctioneer Zetabid also predicted that there will be more house auctions in 2009 despite loan modification and foreclosure prevention measures launched in 2008. He said that there is so much inventory of foreclosed homes that auctioneers’ operations related to foreclosed properties will continue up to two or three more years.
Building industry analyst Greg Paquin studied real estate figures and came out with the following forecasts:
- New house prices will average only $374,000 across Sacramento and surrounding cities.
- Homebuilders will sell only 5,300 houses in 2008 in the counties of Sacramento, Sutter, El Dorado, Placer, Yolo and Yuba counties.
- The housing markets that will recover faster than the others will be Placer County, El Dorado Hills and Folsom.
The behavior of interest rates on mortgage is expected to remain volatile as they have been going up and down as economic news reports are released. According to Freddie Mac economists, rates fell when news reports of declining levels of consumer spending and job numbers and increased foreclosures were released. Comstock Mortgage issued its observation that rates fell by one-fourth of one percent in a span of only few hours in one particular weekday.
In the meantime, a survey by Mortgage Bankers Association in 2008 showed that borrowers have become cautious in their approach to mortgage loans. The percentage of subprime loans across the U.S. has declined to 3.8 percent, much below the 20-percent level in 2005 and in 2006.
A Guide to Buying Pre Foreclosures in Los Angeles
Thursday, October 9th, 2008There are a number of families in Los Angeles who are going through financial problems. While some of these families are finding it increasingly difficult to keep up with their mortgage payments, for some others it is getting to be impossible. There are a number of foreclosures in Los Angeles, and more facing the risk of foreclosure. With the current turmoil in the housing sector, prices of homes (especially foreclosure homes) have gone down considerably.
Certain relief is expected in the form of the government passing measures to fix the ongoing crisis. With some stability in sight, this is being regarded as a good time to buy property in the residential sector.
Buying a house associated with foreclosure often gets you discounts on the market value of the house and is therefore regarded as a better option.
A house enters the pre foreclosure stage when the home owner consistently defaults on the payment and the lender issues a default notice. This tells the home owner that if the default in question is not taken care of in a fixed period of time, the lender has the right to auction the house in order to take care of the debt that has been defaulted upon by the home owner.
The home owner can either fix the default in the given time frame or face foreclosure. The home owner can also choose to sell the home during this period. By doing this, the home owner can get enough money to pay back the lender what is owed on the mortgage, and can thereby avoid foreclosure.
The main reason for a home owner to sell the house is to pay the outstanding debt on the mortgage. Therefore, as far as the offer price can cover the amount to be repaid, there is a good chance of the offer being accepted.
In case the debt in question exceeds the market value of the house, it can be sold for lesser than the debt amount, in accordance with the lender. Lenders are known to write off considerable amounts in such scenarios, because they see it as a better option as compared with having to foreclose on the house.
Secondary liens and unpaid taxes should be checked for, as once you buy a house, their liability passes on to you.
Looking for houses for sale amongst pre foreclosures is quite easy. Banks could give you information about the pre foreclosure they have, owners could have themselves listed with real estate agents, newspapers could be referred to and the internet is also a good source.
Ideally, you should look at as many houses as possible before you make your final call. Thorough research should be put in the process of buying a pre foreclosure home (irrespective of whether you intend to buy for investment, or as a house to live in).
A Guide to HUD Foreclosures in San Diego
Wednesday, October 8th, 2008A number of foreclosures in San Diego are put up for sale by the Department of Housing and Urban Development. These are homes that have been foreclosed upon by government bodies in order to recover money that is owed to them by the home owner in question. Alternatively, they could be homes that were backed by FHA insured loans.
These houses foreclosure are commonly referred to as HUD foreclosures and are known to sell cheaper than homes which have been foreclosed upon by banks. This write up aims to provide you with the basic knowledge about how to approach buying a HUD foreclosure home.
Buying a HUD foreclosure home does have different procedures than buying a bank foreclosure. However, the process is not at all difficult. HUD foreclosures sell through real estate agents that have been approved by the government (a large number in San Diego are).
The easiest way to find foreclosed houses in your area, or anywhere else, is going through the internet. The Department of Housing and Urban Development has its listings of homes available on the internet. Alternatively, you could approach a real estate agent who is approved to sell HUD foreclosure homes, in the neighborhood where you wish to buy the home.
HUD foreclosures sell through a bidding process where sealed bids have to be placed on the home in question through an HUD approved real estate agent. The Department of Housing and Urban Development would pay the fees of the real estate agent acting on your behalf, if it is mentioned in the contract.
You can qualify to buy an HUD foreclosure home if you have the funds to buy the home. This could be in the form of certified funds or an approved home mortgage. First preference in selling these homes is given to the bidders who intend to stay in the house that is up for sale. There generally is an initial offer period which is open to home buyers who intend to stay in the home, after which home buyers interested in using the home for investment purposes can bid on the home.
All the sealed bids that are received for a home during the initial offer period are opened together at the end of this period. The highest bidder usually gets the home. In cases where the home does not sell during the initial offer period, bids are accepted after this period and are opened immediately after they are received.
Special programs in selected neighborhoods are in place where professional such as law enforcement personnel, firefighters, teachers, etc. qualify for special reduced prices in buying HUD foreclosures.
HUD properties are known to offer great discounts. If you can spend some time and effort into the process, there is no reason why you cannot get yourself a bargain.
Irvine Foreclosure Rates Might Increase
Tuesday, August 26th, 2008Just like in several states across the country, California is not having a great time either due to the increase in California foreclosures. Even through 2007, California was among the top 10 in as far as number of house foreclosures are concerned and even in 2008, California is still among the top 10. So nothing seems to have changed for California and some of the places that are suffering the brunt of this include San Diego, Los Angeles, Long Beach and Irvine. Irvine Foreclosures has been increasing steadily and it is not just homes that have become the victims of rising interest rates and foreclosures. An 18-storey tower called the Marquee Park Place is now listed in the types of foreclosures in Irvine.
Huge increase in the number of Long Beach Foreclosures
Thursday, August 14th, 2008There are several neighborhoods that are witnessing an increase in Long Beach Foreclosures with the highest contribution being made by zip code 90806, which witnessed 38 foreclosed homes in the second quarter of 2008 vis-à-vis 4 foreclosed homes in the second quarter of 2007. The median price at zip code 90806 in Long Beach was $570,000. At the end of the second quarter of 2008, Long Beach is ranked 35 among the top 100 metropolitan areas in the US foreclosure list.
Increase in Los Angeles Foreclosures
Monday, August 11th, 2008Are you an investor or a first time homebuyer? If you are one then your best option is Los Angeles Foreclosures. House foreclosures are basically those homes where the homeowner has not been able to make the monthly loan payments and because of which they have been sent notices of default. Actually these homes first go through the pre-foreclosure period, which is different for different states and then if the homeowner is still unable to pay the loan off then their homes go into foreclosure. California foreclosures are sold through public auctions and the highest bidder gets the home. Most of the foreclosure properties are sold at a price that is much less than the actual rate of the home. This is done by lenders in order to retrieve as much of their loan as possible.
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