Those on tsunami watch are having trouble staying awake, but after all the dripping it’s no surprise that the weekly totals of new REO listings coming onto the MLS in SD County are only slightly higher:
| Week | # REOs | $$/sf |
| 8/26-9/1 | $172 | |
| 9/2-8 | $176 | |
| 9/9-15 | $177 | |
| 9/16-22 | $277 | |
| 9/23-29 | $178 | |
| 9/30-10/6 | $182 | |
| 10/7-13 | $183 | |
| 10/14-20 | $188 | |
| 10/21-27 | $187 |
While NAR has taken a lead role in supporting the tax credit extension, you have to believe the banking lobby is pushing it hard too. Don’t they have to be thinking that the next six months is a prime opportunity to dump a load of REOs?
Banks have not seemed eager to actually write their losses and realize them. Unless they are worried that someone else will let loose, and they will be late to the party. If the multiple offer scenario chronicled on this blog keeps playing out, expect status quo.
The problem is that it’s becoming common knowledge that the banks are taking forever to foreclose, which encourages people who would otherwise pay their mortgage to go on the two-year’s-free-rent plan. That is, delaying things just makes the problem worse. The banks are going to have to start foreclosing eventually.
Now, if they were smart about it, they could pull it off. They don’t have foreclose everything at once, just at a higher rate than currently. If every property gets five offers instead of ten, they will still sell at list or above.
I believe it’s more important for the banks to not realize all losses at once than receive highest dollar for properties. They must certainly like the credit extension (I bet they’d love a 3-yr extension,) but it won’t dictate how they’ll manage foreclosures IMO.
For the economic and RE bears… hang in there my friends. They can prop this pig up for a while, but NOT forever.
“The problem is that it’s becoming common knowledge that the banks are taking forever to foreclose, which encourages people who would otherwise pay their mortgage to go on the two-year’s-free-rent plan. (Geotpf, 10/29/09, 8:18 am)
I talked to a friend last night. She’s madly trying to find a renter ‘cuz she’s in some forebearance program with her bank. Not more than 15 hours ago, I said to her: “The banks are taking forever to foreclose.If you work hard and get the money together to pay what you owe, maybe you can save your house.”
She disagreed with my assessment (which is OK). She said she’s in some forebearance program (don’t know the details) and so she will be foreclosed on. The looming deadline date is 11/15/2009 at 5 PM– just 18 days away.
Anyone have any thoughts? How about you, JtR? Does a forbearance program already in place make a difference how fast a bank forecloses? Will the process being quicker or slower ‘cuz that bank may be buried under paperwork with other foreclosures? I’m just confused on that point…
“hang in there, bears”
Some people will never buy because they are either frozen in fear or have a permanently negative outlook.
http://www.boston.com/realestate/news/articles/2009/10/09/title_troubles_leave_some_foreclosure_sales_in_limbo/?page=1
The above describes an issue I have seen reported on-and off for a long time. Basically there appears to be some technicality that is causing some /many /most lenders to pause and make sure all their t’s are crossed and all i’s dotted BEFORE proceeding with foreclosure.
Can anyone here shed more light on this?
See Comment #4. I completely agree. Being a wanna-be home buyer, I still think there are a ton of those Pick a Pay mortgages out there. I can’t remember the name, but I was offered one back in 2006 and said to the female loan officer who was pushing it: “I dunno. It’s called a NEGATIVE amortization loan. That can’t possibly be good for me! (She even offered me a $5,000 “rebate” if I bought a home and used her as the agent and got financing through her company.)
Hmmm, I wonder what’s she’s doing now? Is she still employed as a REAL bad agent? She certainly didn’t care about me as her client. Her eyes were clearly focused on her (hopefully) expanding bank balance.
Yep, I’ve learned a lot about real estate as a wanna-be home buyer in the last few years with the whole housing meltdown. Not all of it is inspiring. But finding JtR’s bubbleinfo by way of the LA Times is a highlight.)
On the Central Coast, prices are still falling. Even more as kiddos are back in school and the traffic really has taken a dive and the holidays are approaching. The more patient I am and the longer I wait is proving to be the best strategy for me. But maybe I’ll take Jim’ advice. His 10-reason list in reply to me featured #6 (“Move to a cheaper area –great idea!”). I’m pondering what to do. Just my 2 cents…
This is slightly off topic yet somewhat related to Susie’s last post: I just spoke to a friend: her former mortgage broker/friend was let go from his brokerage job due to the downturn back in 2008, was unemployed for almost a year, finally got a job at Smith Barney pending passage of his Series exams. He failed the exams, was fired. Last I asked, he had missed the last 4 months mortgage payments on his upside down house (he has no intention of vacating); still they have an $800/mo. lease on some ridiculous car…want to know where he’s working now? Wells Fargo! He handles mortgages for high net worth people. Unreal to me that they would hire a guy who doesn’t even make his own mortgage payments. It kind of sickens me.
If you’re nervous about house prices in SD travel around USA a little. It will put things in perspective when you can nearly buy an entire house for the same price of a SD downpayment.
“If you’re nervous about house prices in SD travel around USA a little. It will put things in perspective when you can nearly buy an entire house for the same price of a SD downpayment.”
Careful, if one leaves SD/California it may become clear very quick there’s no reason to come back.
Enough California Bashing–Those who want to leave, leave.
http://www.time.com/time/nation/article/0,8599,1931582,00.html
Sugar Land baby! http://houston.craigslist.org/reb/1442399937.html
That house would list at like $5 billion in CV. And then you’d get into a bidding war over it.
The banks always get what they want, you can be sure of that. JtR should run a contest to guess what month the tax credit will really end, but doing so would bear the risk of never having a winner.
Genius – What, no power lines? I need power lines if I move to remind me of home/Carlsbad.
I don’t miss the cost of living, but I really miss the beach. My ten year old says, “I can’t believe I have to go to another state to go to the beach!” Oh, and I miss my avocado tree. That was special.
No California Bashing from here.
Looks like some lenders are walking away from their mortgages:
http://www.daytondailynews.com/news/dayton-news/a-new-crisis-lenders-abandon-properties-352642.html