Menu
TwitterRssFacebook
More Links

Are you looking for an experienced agent to help you buy or sell a home? Contact Jim the Realtor!

Carlsbad
(760) 434-5000

Carmel Valley
(858) 560-7700
jim@jimklinge.com


Category Archive: ‘Foreclosures’

Mortgage-Debt Tax Relief

Yesterday I saw a for-sale sign in front of an upcoming REO listing.  It made me wonder, “How many REO and short-sale listings of detached-homes have we had this year around NSDCC?  Here are the counts:

REO: 5

Short Sales: 43

Non-distressed: 3,516

There’s not much chance of finding a deal these days!

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Here is the update on the Mortgage-Debt Tax Relief:

Read More

Posted by on Sep 4, 2014 in Foreclosures, Short Sales, Short Selling | 0 comments

Doomer Report

This guy only sees negative in the real estate world.  He called me once trying to get me to bash the market, and when I refused, he hung up.  Even today he is still ranting:

http://www.marketwatch.com/story/this-house-market-is-falling-apart-2014-08-26

Real estate analyst Keith Jurow, author of the Capital Preservation Real Estate Report, is warning that the real estate market is not as strong as it seems.

Says Jurow: “I never bought into the idea that we had a recovery at all.” His research leads him to conclude that home prices will be heading lower.

His research? Because the Case-Shiller Index is still rising, just not as fast – that means prices will be heading lower?  There are plenty of reasons you could use to justify the doomer position (wars, unemployment, unaffordability, earthquakes, etc.), but smaller increases are a weak excuse.

He also thinks we will still have a surge of foreclosed properties to come, just because their are so many people delinquent.  But once you miss a few payments and ruin your credit, the delinquent homeowners might as well ride it out until they get the boot.

How are the San Diego foreclosures?

Some said they dropped off because of the Homeowners Bill of Rights, which was released two years ago and became law on January 1, 2013.   The bansk have had plenty of time to adjust – here’s how they are doing:

San Diego County Filings

San Diego County Trustee-Sale Results

It’s hard to believe that people just go back to making their payments, whether they get a loan mod or not.  The banks will wait until they can make money by foreclosing, which around the coastal markets, should be after another 10% appreciation or so.  Until then, why foreclose and lose money?

Posted by on Aug 27, 2014 in Foreclosures, Foreclosures/REOs, Jim's Take on the Market, No-Foreclosure as Banking Policy | 10 comments

SD Foreclosure Counts

The decline in foreclosures continues, but the pundits and media don’t really look into it much further.  Here is the best quote they could come up with in this article, linked below (hat tip to Stormin’):

“We have now registered two and a half years of continuous decreases in the number of homeowners who are in some stage of the foreclosure process. This consistent decline means fewer Americans are experiencing the distress of delinquency and default,” said Anand Nallathambi, president and CEO of CoreLogic.

http://dsnews.com/foreclosure-inventory-continues-decline-april/

The foreclosure notices and the number of properties actually foreclosed have dropped considerably in San Diego County.

San Diego County Filings

San Diego County Trustee-Sale Results

We have had 1,500 to 2,207 notices sent out per quarter over the last 12 months, but only 450-610 properties foreclosed per quarter.  The big gap makes you think that the banks/servicers are still throwing loan mods at anyone who wants one, and cancelling any notices soon thereafter.

Posted by on May 30, 2014 in Foreclosure Count, Foreclosures, Foreclosures/REOs, No-Foreclosure as Banking Policy | 1 comment

Mozilo’s Errant Email = Free Rent Forever?

Remember Dan Bailey?  Here is a follow-up from latimes.com:

angeloDaniel A. Bailey Jr. isn’t your average homeowner. He hasn’t paid his  mortgage in more than five years, and has no plans to start now.

His stance stems from a bizarre incident that thrust Bailey into the news in  2008, when he suddenly became a public relations liability for embattled home  lender Countrywide  Financial of Calabasas.

Bailey had blanketed Countrywide with emails begging for a mortgage  modification. The reply came from none other than Angelo Mozilo, Countrywide’s  chief executive, who accidentally hit “reply” instead of “forward” on a note  meant for colleagues. In the misfired missive, Mozilo called Bailey’s letter a  “disgusting” and “unbelievable” example of the form letters then inundating the  lender from borrowers saying they couldn’t pay.

The email:

“This is unbelievable. Most of these letters now have the same wording. Obviously they are being counseled by some other person or by the internet. Disgusting.”–Countrywide Financial founder, chairman and chief executive Angelo Mozilo

Bailey insists that Bank of America is obligated to honor an agreement that  Countrywide’s damage-control squad struck to silence him — a verbal deal he says  entitles him to live for free in the two-bedroom, 938-square-foot bungalow he’s  called home for 21 years.

Bailey, a struggling photographer, said he struck his deal with a Countrywide  executive he knew as Ms. Morgan. She told him he could stop paying his mortgage,  but only if he signed off on a loan modification within 24 hours and kept quiet  about Mozilo and his errant email.

Read the full article here:

http://www.latimes.com/business/realestate/la-fi-live-for-free-20131214,0,4150658.story#ixzz2nTDr1qf6

The whole story from 2008, including the form letter Bailey used from loansafe.org, an internet coaching service for troubled  borrowers:

http://www.foxbusiness.com/markets/2008/05/22/countrywides-mozilo-calls-borrowers-plea-disgusting/

Posted by on Dec 14, 2013 in Foreclosures, Foreclosures/REOs | 2 comments

SB 30 Fails

From the California Association of Realtors:

LOS ANGELES (Sept. 3) – Thanks to partisan political gamesmanship by the Assembly Appropriations Committee, struggling homeowners who sold their homes in a short sale in the past eight months will be further penalized by being forced to pay state income taxes on money they never received, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) said today.

Senate Bill 30 conforms California tax law to federal tax law, which already says sellers can’t be taxed on forgiven mortgage debt. SB 30 failed to pass out of the Assembly Appropriations committee last Friday.  The vote on the bill was along party lines with Democrats voting “no” and Republicans voting “yes.”

“We are disappointed that California Assemblyman Mike Gatto (D-Pasadena) failed to show the leadership necessary to provide relief to distressed homeowners who are already in dire financial trouble,” said C.A.R. President Don Faught.  “These are real families in real financial need who may well be forced into bankruptcy by an unresponsive legislature.  To heap an unfair tax bill on top of the pain and emotional duress of losing a home is unconscionable.”

Under current state law, when a lender forgives mortgage debt in a short sale, the seller must pay state income tax on the amount of forgiven debt.  The previous California exemption lapsed at the end of 2012, so forgiven mortgage debt on short sales occurring in 2013 is considered taxable state income.  The federal government does not charge federal income tax, and neither should the state.

Unfortunately, Senate leadership, in an act of political gamesmanship, linked the enactment of SB 30 to a new tax measure in an effort to extort C.A.R.’s support for that tax measure.

Posted by on Sep 4, 2013 in Foreclosures, Local Government, Short Sales, Short Selling | 12 comments

NSDCC Distressed-Sales Counts

The foreclosure era is winding down, and around the North San Diego County Coastal region, the overall impact has been less than imagined - let’s recap the counts of distressed-sales:

Year
Short-Sale
REO
Non-REO/SS
Distressed-Sales %
2008
5
30
2,002
2%
2009
110
164
1,949
12%
2010
216
199
2,045
17%
2011
278
190
2,094
18%
2012
356
162
2,634
16%
2013 (YTD)
103
30
1,866
7%
Totals
1,068
775
12,590
13%

Short sales have had more negative impact on average pricing than REOs lately, mostly due to realtor fraud:

Year
Short-Sale
REO
Non-REO/SS
2008
$262/sf
$284/sf
$440/sf
2009
$295/sf
$284/sf
$408/sf
2010
$318/sf
$292/sf
$393/sf
2011
$292/sf
$293/sf
$393/sf
2012
$284/sf
$289/sf
$396/sf
2013 (YTD)
$277/sf
$323/sf
$427/sf
Totals
$293/sf
$297/sf
$409/sf

Hopefully this embarassing chapter in realtor history will be over soon.

Posted by on Aug 8, 2013 in Foreclosure Count, Foreclosures, North County Coastal, Short Sales, Short Selling | 0 comments

New Normal for Foreclosures

Back in the old days there were 100-500 foreclosures per year in SD County:

Microsoft Word - A Brief History of Foreclosures

We’ve already had 1,504 properties get foreclosed in the first half of 2013, so historically we’re still at elevated levels.

But with the county averaging 3,000+ total sales per month, lenders will be able to sprinkle in a couple of hundred REOs each month without affecting values much.  In addition, flippers will keep doing their share; selling a similar amount of properties for retail-plus.

San Diego County Trustee-Sale Results

Lenders must be feeling comfortable at these levels, because the number of total notices were almost identical for the last two quarters. The Notices of Trustee Sale were down 52% Y-O-Y:

San Diego County Filings

Posted by on Aug 7, 2013 in Flips, Foreclosure Count, Foreclosures, Foreclosures/REOs, Jim's Take on the Market | 0 comments