Home Sales Up in US but Down in CA - Lenders Partially to Blame
National home sales were up 10% this September according to the National Association of Realtors. Some factors contributing to this growth are low mortgage rates and high affordability, home prices are averaging 22% less of where they were five years ago. Affordability has been influenced by the weakness in home buying activity. September’s home sales are still down 19.1 % from the same period last year and demand for homes has decreased since the homebuyer tax credit expired last April.
However, California hasn’t experienced this national upswing in sales and the downward trend continues to be a problem. Buyers already have concerns about foreclosure reversals and lenders have already limited the number investors due to putting limits on how many properties they can purchase. Wouldn’t it be better to have a strong buyer with 25% down than a high risk FHA buyer at 3.5% down? This perpetuates the problem only causing more defaults. To make matters worse, many lenders are increasing their demands for short sale purchase prices, often demanding prices tens of thousands of dollars over the prevailing local assessed value. This is not only a disturbing trend to short sale homeowners and homebuyers but to the local communities affected. When lenders demand unreasonable prices in a weak market they discourage what few buyers there are, allowing properties, often vacant, to sit for months or even years. It is these types of practices that encourage the increase of city violations, HOA penalty fees, theft, vandalism and vagrant squatters, resulting in a further decrease in local property values.
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HUD Secretary - Foreclosure Problems Aren’t Systemic
In the Federal Task Force meeting on Wednesday, the Secretary of Housing and Urban Development, Shaun Donovan said they have been aware of violations with certain servicers for some time and they will “take actions”. However, he stopped shy of identifying any systemic problems instead citing isolated non specific problems. More details could become available when the FHA probe is completed in about nine weeks. The Federal Task Force investigation has now shifted to determining whether there was “criminal intent to take a home” “robo-signing” or fraud. Any mortgage servicers found guilty of these actions could face hefty fines or lose their ability to work with the Federal Housing Administration at a minimum. It is still too early to tell which lenders may face charges and what effect any such charges would have on the lending industry as a whole.
Federal Task Force Investigation into Foreclosure Fraud Could Lead to Criminal Charges
According to CNN, White House Press Secretary Robert Gibbs the Federal Housing Administration and Financial Fraud Enforcement Task Force are in the process of an investigation into foreclosure regulations and they will expect any bank that violated the law to be fully accountable for those actions. The Task Force is meeting on October 20, 2010 at the Department of Housing and Urban Development. They are planning to determine whether civil or criminal charges will be enforced. There should be a White House briefing after the meeting concludes.
Mortgage Rates at Fifty Year Lows - Good Time to Invest in Central Valley Real Estate
According to Freddie Mac, 30 year fixed mortgage rates declined to 4.19% and 15 year rates are at 3.62%. These are the lowest rates on record since the beginning of tracking such data, in 1971. Some experts have said we would have to look back approximately 50 years to see similar mortgage interest rates. With these once in a lifetime rates houses should be selling, but the confidence in the economy is still low. There has been an increase in refinances, but people are leery of investing in real estate. In order to feel confident about a real estate investment the consumer must be able to commit for the long term. This is difficult for most when unemployment is still at about 10% and inflation continues to be a concern. However for those who work in less volatile employment sectors and are considering purchasing a home or investment property, there will never be a better opportunity. You can determine any property’s value with a quick and easy Eppraisal and if you have any further questions about central valley real estate or investment opportunities feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form.
Stockton, CA, Short Sale Stockton Home for Sale & Stockton Real Estate 1078 Oxford Way_Stockton_ CA_95204
For information on this and all the Stockton homes for sale visit www.Homes-In-Stockton.com!
Great Stockton short sale in UOP/Oxford Manor location! Charming older home with wood floors and big kitchen. Kitchen with tile counters and floors. Fireplace in living room. French Doors open to outside fountain area. This is a wonderful large home with tons of older home character
Foreclosures - Suspended or Expedited? Depends on Who You Ask
On October 7, 2010, Barack Obama rejected the Interstate Recognition of Notarizations Act, which would require courts to accept documents that have been notarized in another state. Many are calling for a moratorium on foreclosures, stating banks have reclaimed homes on fraudulent documentation. Just last week, Bank of America, JPMorgan Chase and GMAC announced they were suspending thousands of foreclosures due to inaccurate handling of documents. It is estimated that there are documentation problems in 80 percent of currently pending foreclosures.
Just when it seems the government and banks are beginning to act responsibly, Wells Fargo announced they will cease to delay foreclosure proceedings. Wells Fargo cited mortgage investors, including Fannie Mae and Freddie Mac, as the reason for this policy change. Which could mean, other banks will soon follow. This means an active short sale will no longer be an acceptable reason to prevent foreclosure proceedings. For those facing foreclosure on a Wells Fargo loan this means you must act swiftly to complete a short sale or the clock will run out. Unless Fannie Mae and Freddie Mac also act responsibly, all of this is just one step forward and two steps back.
New California Short Sale Deficiency Law
As of January 1, 2011, the first position lender will not be permitted to obtain a deficiency judgment against the seller after a short sale. The short sale approval letter and acceptance of the funds will constitute payment in full and discharge of the deficiency. However, these new changes will not apply to refinanced loans. If you are considering a short sale or would like to learn more feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form. Pat Holkesvig and Your Home Team are The Central Valley’s Short Sale Specialists. We process Stockton Short Sales, Elk Grove Short Sales, Lodi Short Sales, Lathrop Short Sales, Manteca Short Sales, Modesto Short Sales, Mountain House Short Sales and Tracy Short Sales.
Stockton, CA, REO Stockton Home for Sale & Stockton Real Estate 3830 Estate Dr, Stockton, CA, 95209
For information on this and all the Stockton homes for sale visit www.Homes-In-Stockton.com!
REO located in 95209 Zip Code! Large 5 bedrooms, 4 full baths. Family room with fireplace. Kitchen with tile counters, dishwasher, and cook top. Backyard with covered patio fantastic for family gatherings.
Stockton Foreclosure Rates Decrease
According to the Central Valley Business Times, CoreLogic reports foreclosure rates in Stockton decreased in July compared to a year earlier. Foreclosures among outstanding mortgage loans were 4.38 percent down from last year’s 5.42 percent. However foreclosures are still higher than the national average of 3.13 percent and the mortgage delinquency rate has increased. The 90 day delinquency rate is at 15.09 percent of mortgage loans, up from the 14.96 percent last year. This could mean that the numbers of successful loan modifications and short sales is keeping the foreclosure numbers down despite the increase of defaults. If you are considering a short sale or would like to learn more feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form. Pat Holkesvig and Your Home Team are The Central Valley’s Short Sale Specialists. We process Stockton Short Sales, Elk Grove Short Sales, Lodi Short Sales, Lathrop Short Sales, Manteca Short Sales, Modesto Short Sales, Mountain House Short Sales and Tracy Short Sales.
