The latest figures for existing homes sales were released this week with very discouraging results. Existing homes sales have hit the largest monthly decline in history at 27.2%. This is coupled with a record breaking 11 year peak in housing inventory. On the bright side, if you are looking to buy in the San Joaquin valley, there is no better time than the present. With great inventory to choose from and 30 year fixed  mortgage rates at an all time low of 4.56% it is truly a buyer’s market.

The attached document provides a quick reference to assist distressed sellers in determining if a lender would have the right to collect on a deficiency resulting from foreclosure in the State of California.  It is intended only for reference.  I recommend strongly that a seller facing foreclosure or pursuing a short sale consult with an attorney and CPA.  Pat Holkesvig & Your Home Team specialize in:

Stockton Short Sales,

Lodi Short Sales,

Lathrop Short Sales,

Manteca Short Sales,

Elk Grove Short Sales,

Mountain House Short Sales,

Tracy Short Sales,

Ripon Short Sales and

Tracy Short Sales.

If you have any real estate related questions please contact Pat Holkesvig at (209) 471-6516 or complete our Contact Form.

On August 12^th in the post Could This Be The End of Short Sales? we wrote about how On August 17^th  the Treasury was going to be holding a hearing regarding the future plans for Fannie Mae and Freddie Mac.  It was rumored that the Obama administration was about to order the government-controlled lenders to forgive a portion of the mortgage debt for Americans who are underwater.

Unfortunately, the flurry of buying activity Stockton real estate experienced this past spring has flittered away along with the federal homebuyer tax credits over the summer. Meanwhile the Stockton housing inventory has continued to grow as we head into the traditionally slow fall and winter months. As the number of potential buyers continue to diminish and housing inventory continues to increase, it is inevitable that prices will need to drop.  

A “buy and bail,” is when a buyer buys a new house before their credit rating is ruined by walking away from their old house. It’s an attempt to escape payments on a property that is already “underwater”, and move into a new home with a more affordable loan. The practice is fraud and usually used by people who have a job and low debt. It is still a problem even though Fannie Mae and Freddie Mac, the biggest U.S. mortgage-finance companies, have taken serious moves to prevent it.

Keep your eyes on the news August 17th when the Treasury will be holding a hearing regarding the future plans for Fannie Mae and Freddie Mac.  It is rumored that the Obama administration is about to order the government-controlled lenders to forgive a portion of the mortgage debt for Americans who are underwater.  If this were to happen, assumedly the short sale market would dry up and foreclosures would slow to a near stop. In theory, this would force the real estate market to regulate to a new normal. This could have a tremendous local impact considering the large percentage of short sales and foreclosures flooding the greater Stockton real estate market.

HR 5872, which passed the House of Representatives last week, increases FHA’s commitment authority for its multifamily insurance programs by $5 billion for the remainder of the fiscal year. While HR 5891, which passed the House of Representatives July 30, will permit FHA to increase its single family annual premiums, raising the statutory cap from 0.55 percent to 1.55 percent. Essentially, HR 5872 saved the ability for FHA to issue commitments for the remainder of the current fiscal year. Although HR5891 will cost more money to the single family consumer, it is believed this increase will perpetuate FHAs ability to become self sustaining and help to stabilize the housing market. At this time it is unclear what specific impact these changes will have on the Stockton real estate market and the number of future Stockton short sales.

According to a recent article in the Tracy Press, The University of the Pacific’s Business Forecasting Center believes Northern California is already on the economic rebound, but San Joaquin County is not considered so lucky. North San Joaquin was the first area to suffer from this economy slump and it still has a long way to go. The unemployment rate in San Joaquin is expected to remain in the double digits well into 2012 while the rest of the state is expected to be into single digits by that time. They cite local reliance on agriculture, residential construction and government funded jobs to blame. The forecast center predicts once San Joaquin begins to recover, the city of Tracy is expected to lead the trend in business and real estate.