Are Banks Dumping Short Sales For Less Lucrative Foreclosures?
Are banks purposely rejecting short sales in favor of less profitable foreclosures? Maybe so, but why? Some say it may be for reasons such as avoiding fraud or favorable accounting rules allowing banks to foreclose on a home without having to write down a loss until that home is sold as opposed marking the loss on short sales upon approval. However, if this is the case and the bank knows they have no intention of approving a short sale, why do they not only allow but encourage the seller to go through months of the process?
Each month  that a seller is delinquent further contributes to the decline of that seller’s credit. Banks require homeowners to be delinquent and they must be rejected for a modification prior to entering the short sale process. Then, banks take many months to process short sales, propose extremely high counter offers or frequently claim to lose documents that have already been submitted. The customer service workers often say they are poorly trained and can rarely answer any inquiries regarding short sale status. Upon receiving denial letters banks will not provide precise reasons or numbers. Sellers and buyers are left wondering how and why the home foreclosed.
Does any of this sound familiar to you? Are you a buyer or seller who has been through a similar scenario? If so, make your voice heard. The attached New York Times article is looking for your short sale stories.
California Shadow Inventory Impacting Foreclosure Process
HousingWire reported in Shadow inventory rocked by foreclosure snafu that California has about 228,000 homes in shadow inventory. The NAR estimates it would take 11 months to move this much inventory. Â Further stating that this inventory has caused the foreclosure process to take 157% longer in the last three years.
Over a Quarter of All 2010 Home Sales Were Foreclosures
According to RealtyTrac 26% of all home sales last year were foreclosures. In the Stockton area 72% of sales were bank or government held and 50% were REOs. Short sales accounted for  22% of all Stockton homes sold last year. Leaving 28% that were not bank or government related sales. For more information on the Stockton real estate market, feel free to contact Pat Holkesvig & Your Home Team experts at 209.471.6516 or complete our Contact Us form.
Stockton Renters to Receive Landlord Foreclosure Notice
Over a thousand Stockton renters will receive notice this week that their landlord may be facing foreclosure. Almost half of Stockton’s foreclosures are rental properties. All renters should know their rights and not let banks and real estate agents push them into moving out until they have exercised those rights. According to Federal law a minimum 90 days notice is necessary before renters can be forced to move out of a foreclosed rental property. Renters with a lease may continue living in a foreclosed property until the lease expires unless the new owner intends to live in it. In order to check if your rental is possibly in foreclosure call the Tenants Together hotline at 888-495-8020. If you are interested in the Stockton foreclosure market, feel free to contact Pat Holkesvig & Your Home Team experts at 209.471.6516 or complete our Contact Us form.
Man Sentenced for Stockton Flipping Scheme
Iftikhar Ahmad received a 21-month prison sentence and was ordered by U.S. District Judge William B. Schubb to pay restitution of $382,750 and spend three years under supervision upon his release from prison. Ahmad bought up Stockton foreclosures often paying cash, then sold those same homes to fake buyers using false identities. The subprime loans were processed automatically without checking the applicant’s facts and that allowed little or nothing to be put down which allowed for the frequency of the flipping fraud scheme. These types of fraud schemes are very prevalent and are harmful to the neighborhoods of the targeted properties, only causing longer vacancies and neglect. Better education among the public and stiffer prosecution is the answer. If you have questions about local Stockton homes for sale feel free to contact Pat Holkesvig & Your Home Team experts at 209.471.6516 or complete our Contact Us form.
Government to Decrease Financial Involvement in Freddie and Fannie
The Obama administration has announced a ‘winding down’ of financial involvement in Fannie Mae and Freddie Mac at an annual rate of no less than 10% per year. Timothy Geithner predicts it will take three years for the housing market to recover. Then, an additional two to three years for legislators to come to agreement on the government’s role in funding future loans. After an agreement is reached it should  result in new legislation. At this time, the three proposed ideas under consideration are:
1)Â Â Â Â Â private system - where lenders and investors fund new mortgages, with a limited subsidies for the poor and veterans.
2)     private system – where government is involved during market stress to guarantee home loans.
3)Â Â Â taxpayers would insure securities backed by home loans
Stockton 2nd in California for January Foreclosure Filings
RealtyTrac’s list of metro markets with the highest foreclosure rates from December to January, was full of California cities holding 7 of the top 10 spots. The cities included Modesto (2), Stockton (3), Riverside-San Bernardino-Ontario (4), Â Vallejo-Fairfield (6), Â Bakersfield (7), Â Merced (9) and Sacramento-Arden-Arcade-Roseville (10). The monthly increase in California was only 2% however the state holds the record for the highest number of foreclosures filed at 67,072. The Stockton January foreclosure rate was 1 out of every 114 homes received a foreclosure filing.
Central Valley HUD Photo List
View all the HUD owned homes in the Central Valley! Call Your Home Team at 209-471-6516  to view any homes for sale. Search Stockton area homes for sale at www.homes-in-stockton.com and Manteca area homes for sale at www.homes-in-manteca.com!
What Are Foreclosure Consultants?
Foreclosure consultants are any company or person that claim they can assist a borrower with loan modification services in order to save their home from foreclosure. Although there are some legitimate foreclosure consultants, there are many fraudulent companies who claim that they can help you save your home. In California, there is a high level of fraudulent activity in this area. Be advised it is illegal for attorneys, real estate brokers or anyone else to charge an advance fee for loan modification services. Loan modification firms are obligated to inform potential clients that they can get the same services for free from nonprofit mortgage counselors. Nor can a loan modification servicer receive payment until they have fulfilled all duties contractually agreed to with the borrower. Never work with any company demanding payment up front, requesting that you transfer the title to your home, telling you not to make payments on your loan, or instructing you to pay someone other than your lender or loan servicer. Before you choose to work with anyone to assist you with the loan modification process, contact your lender or loan servicer yourself.
Stockton Foreclosure Data Shows Potential Optimistic Trend
According to CoreLogic the Stockton foreclosure activity last November was higher than the national foreclosure rate. In addition CoreLogic reported that 1.65% of homes were in an REO status which was an .11% increase over the previous year. Despite this, the overall Stockton numbers looked promising. Foreclosure rates in Stockton decreased 5.03% in November 2010, a .51 % decrease from the same period a year earlier. In addition, the mortgage delinquency rate had dropped to 14.43% down 3.05% from last year. This news could represent an optimistic Central Valley housing trend when one specifically focuses on the decrease in the mortgage delinquency rates. For more information about Central Valley housing trends, feel free to call Pat Holkesvig & Your Home Team at 209.471.6516 or complete our Contact Us form.
