Posted by & filed under Brookside Real Estate, Morada Real Estate, Quail Lakes Real Estate, Real Estate Market Trends, Short Sales, Spanos West Real Estate, Stockton Real Estate.

Foreclosure Activity In California Is Up

As reported at, ForeclosureRadar, a locally based company that tracks every California foreclosure on a daily average basis, reports foreclosure activity here increased last month.

The number of foreclosures that went back to the bank rose 29.4 percent, those sold to a third party rose by 62.7 percent, and cancellations were up 20.8 percent.

Only a small percentage reach the end of the process…

Last month, 21 percent of scheduled sales were fulfilled, compared to 31 percent a year earlier indicating a smaller percentage of foreclosures scheduled for sale completed the process.

The total number of properties in the foreclosure process remains near record levels in California, despite declines in default filings. ForeclosureRadar says this is largely due to the increase in the time it is taking banks to foreclose, suffering prolonged delays in execution.

The time to foreclose stretches…

The time from notice of default to trustee sale has increased from 146 days in August 2008, to 229 days in January 2010. Lenders, under increasing governmental pressures, have increasingly pursued alternative measures such as short sales, loan modifications and other foreclosure alternatives.

“With delinquent payments rising, foreclosures slowing, and foreclosure alternatives failing,” said Sean O’Toole, founder and CEO of ForeclosureRadar, “it appears the foreclosure crisis will be with us for many years to come.”

What’s ahead??? What to do???

If you have to sell your home do it sooner rather than later. There will be increasingly challenging times. According to Real Capital Analytics:

· As of January 2010 there is more than $174 billion of U.S. real estate in distress.

· $136 billion (nearly 80%) of this number consists of “troubled assets” – where mortgages are delinquent or in default or liens have been filed or…

· Restructured and modified loans account for another $14 billion of distressed assets.

· Only $17 billion of distressed real estate has been resolved to date.

· There is approximately $1.5 trillion worth of commercial mortgages coming due before 2013.

Problems are far from over – alternatives such as short sales may be an answer…

Pat Holkesvig, President of Homes In Stockton, Inc. states unequivocally that the foreclosure crisis WILL be with us for many years. “We constantly seek alternatives find alternatives to foreclosure. Several months ago we started assisting homeowners in distress by pursiuing the short sales process. By the end of the year we handled more short sale transactions than any other agent in San Joaquin County.

Some banks welcome this alternative, especially those who realize that it is more profitable for them since net foreclosure proceeds are typically 30% less than net short sales proceeds. The process also helps preserve the dignity of borrowers. Short sales nevertheless take longer than 120 days due to banks’ apparent inability to move fast. Although we close over 90% of these listings, much can happen in that much time.”

In September’s newsletter we discussed the short sale process. Click here to read that newsletter.

Click here to search the MLS like a realtor or the following links to view the homes available in the following neighborhoods!

(Links are available at the bottom of this email to detailed market reports for Brookside, Lincoln Village, Lincoln Village West, Morada, Morada West, Quail Lakes, Spanos East and Spanos West.)

Stockton Market Trend:

Increased delinquencies, current foreclosures, and upcoming problems related to Option ARMs should result in a housing inventory increase and reduced lending ability – and continued home price reductions. Traditional laws of supply and demand dictate this will happen, unless there is massive finance industry (bank and governmental) interference.

Stockton Stats for January 2010

· There were 2,018 homes for sale in Stockton at the end of the month. This total includes 711 pending units, leaving a balance of 1,307 units (2.6 months’ inventory) available for sale.· 6,004 homes were sold in Stockton during the 12 month period ended January 2010, an average of 500 homes per month. This compares to 495 units average per month one year ago.

· 1,672 homes sold in the last 4 months, compared to 2,359 units sold in the same period last year. SALES ARE SLOWING…

· There is a 4 month inventory on the market (see the “Months Sales In Inventory” chart above). Exclusive of pending sales (more transactions fall out of escrow in this market than in a normal market) there is a 2.6 month adjusted inventory.

· There should be a rash of new homes that will be placed on the market over the next few months unless lenders “bank” foreclosed-upon homes, or some other solution is found for ‘warehoused’ foreclosures and other “Shadow Inventory”. Click here for our comments on Shadow Inventories in October.

· 369 units were sold this month.

· The average sales price per square foot is $82 – less than the cost to build a home.

· The average home sales price was $144,000.

· Increasing delinquencies will result in new measures and should continue a downward pressure on Stockton home prices.

Click on any of the following links to view neighborhood specific market reports.

Pat Holkesvig and Your Home Team are now affiliated with Werner Properties Inc. Please visit us at our new office located at 3439 Brookside Rd, Suite 204, Stockton, CA 95219.

If you are thinking about selling your home, call your neighborhood experts at Homes In Stockton – Your Home Team. We understand the market and have the knowledge and experience to guide you through the complexities of today’s real estate transactions.

We have more short-sales transactions than any other agent in San Joaquin County. We close over 90% of our short-sales. If you would like to discuss this process as an option for yourself or for someone you know please call us.

Call us today at 209-471-6516 209-471-6516 209-471-6516 209-471-6516 .

Referral Request: Please forward this newsletter to anyone you know with a need for information on short sales, loan modifications or real estate financing!

Click here to visit – our free auction, pre-foreclosure, and foreclosure search!

Pat Holkesvig & Your Home Team

Homes In Stockton, Inc./Werner Properties Inc.
3439 Brookside Rd, Suite 204
Stockton, CA 95219

DRE #01393419

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