The amount of properties being foreclosed is still lower than the last two summers:
| Jun-Aug | Back-to-Bene | 3rd-Party Buys | Total # of SD properties foreclosed |
| 2008 | |||
| 2009 | |||
| 2010 |
But at least the recent trend is heading in the right direction – fewer trustee-sale cancellations:
Will servicers consider that selling more properties when rates are 4.25% might be a good idea?
The sooner the better, but selling foreclosures just isn’t their area of expertise and they don’t know who they can really trust to handle the task. That’s the real dilemma.
Also in play is they’d rather lose more money slowly in the long run than less money all at once. It actually looks better to their investors.
Encinitas house that went back to the bene in March. The six month dealy is obviously due to the care involved in taking the artisitic photos and writing the pithy, all CAPS description.
http://www.redfin.com/CA/Encinitas/407-Swamis-Ln-92024/home/6666973
It will be interesting to see what this ends up going for, as it looks like there haven’t been any sells in this community since the dead cat bounce.
Don’t you love the listings that are east of I-5 that start their remarks with,
“Walk to beach…”
selling foreclosures just isn’t their area of expertise and they don’t know who they can really trust to handle the task.
I don’t think we can say that anymore, with servicers having unloaded 13,000+ properties just in SD County alone over the last 2.7 years.
The pace has to be deliberate, and agreed, all to appease the investors.
This went pending today, after 1.5 years on market – they started at $24,500,000:
http://www.sdlookup.com/MLS-100005264-5490_Calumet_Ave_La_Jolla_CA_92037
It seems like more are going back to bene because more are priced too high at the steps. I’ve seen houses that are listed and active (not pending/contingent) and the trustee sale comes out with a price a LOT higher than the MLS price… if you can’t get a buyer traditionally – why would you expect someone to pay even more, all cash, at the steps?
Jim, sdlookup says that listing isn’t available to us common folk.
Here’s another link to the same place (which is pretty nice):
5490 Calumet, La Jolla
That link didn’t work for me either.
“This property is listed on the local MLS however due to industry rules and regulations the property’s listing currently may only be
shown to registered users.”
It worked for me – but I have an sdlookup account.
Try the redfin link
http://www.redfin.com/CA/La-Jolla/5490-Calumet-Ave-92037/home/4937705
Try it through redfin.
http://www.redfin.com/CA/La-Jolla/5490-Calumet-Ave-92037/home/4937705
Can you picture this?
The REALTOR powers-that-be are sitting around the table one day, discussing how to provide what the clients want.
It comes up, what do we do when a property goes pending, because that’s when it is one of the most vital pieces of relevant data to judge the market?
Ahhh, let’s cut off the transparency right there!!!! BLOCK THEM!!!
Try this link, from my own search engine in the top left corner of the blog – will probably get blocked at midnight. Make sure to see the theater room:
http://idx.diversesolutions.com/search/2142/11/#MinPrice=18000000&MaxPrice=26500000&ZipCodes=92037&PropertyTypes=335&PerformSearch&MinPrice=20000000&MaxPrice=21000000&ZipCodes=92037&PropertyTypes=335&PerformSearch
EDIT: yep, it got deleted at midnight
Everything is still 20% to 30% over priced! Wait till early 2011 to see a major collapse in prices.
“The pace has to be deliberate, and agreed, all to appease the investors.”
Thank You! Finally people are starting to acknowledge that banks are manipulating the market to their advantage.
Now that the numbers are starting to prove how banks are screwing everyone over it’s time for the SEC to file a RICO/Monopoly suit.
RC,
Welcome newcomer!
Veros, a Santa Ana-based real estate tracker, said its economic model forecasts Orange County homes appreciating 1.8% in the year to end June 2011 — part of an overall firming of much of the California housing market.
In the report, Veros’ Eric Fox says: “More coastal California markets are showing signs of improvement … California’s Inland Empire area is showing signs of modest appreciation, joining the state’s strongest metro region, San Diego.”
Both the IE and San Diego cracked Veros’ Top 5 for projected gains in the year to end next June:
1.Shreveport/Bossier City, La.: +4.2%
2.San Diego: +3.4%
3.Inland Empire: +3.2%
4.Amarillo, Tex.: +3.2%
5.Houston: +3.1%
At the other end of the spectrum, Veros’ Bottom 5 has a heavy Florida flavor:
1.Chico: -8.9%
2.Deltona/Daytona Beach, Fla.: -8.3%
3.Reno: -7.8%
4.Vero Beach, Fla.: -7.8%
5.Palm Bay/Melbourne, Fla.: -7.7%
Overall, Fox wrote: ”Although there aren’t any overwhelmingly strong appreciating forecasts in the near term, the depreciating ones are milder than they were a year ago.”
Estimate 1.2 mile straight line to the beach. So, the homeowner is assured of 2.5 mile walk round trip to the beach and back – a healthy daily routine.
Shadash #11- I believe we have similar views on the BS of the marketplace. However, the angst towards the banks is highly misplaced.
Banks are in business to maximise their shareholders/clients value, and very little else. Thus they should be applauded for their obviously successful attempts to maximize their overall values and implement their clients requests.
The angst needs to be directed at the government which set the table, defined the rules, and printed the money, and gave it to the banks which encouraged this strategy to occurr.
Thus, while the banks are culpable in this, it is only to a lesser degree than the government.
The government robbed the people, the banks simply drove the get away car.
Would the banks be operating the same way, relating to REO/foreclosure, if the government left them out on their own??? Doubtful.
90% gov – 10% banks….follow the money and it all leads back to the gov’s printing presses and accounting rules.
Clearfund – Depends on where you draw the line between banks and government, and on what side of that line you put the Federal Reserve. They’re all 100% guilty in my book; just because there were two shooters doesn’t mean each side only gets half of the blame for the murder.
Clearfund…
Last two heads of the Federal Reserve
Bernanke = Princeton, NYU, and Stanford
Geenspan = Columbia, and NYU
Last two heads of the Treasury
Geithner = Dartmoth, Hopkins. In October 2003 at age 42 he was named president of the Federal Reserve Bank of New York
Paulson = Harvard, Goldman Sachs
Your arguement that Government is the problem and not the banks is dubuious. More than anything The Federal Reserve (that printes the money) and the US Treasury (that tells government how to spend/allocate money) are an intertwined “old boys” club that work together.
Also…
The Federal Reserve = There are 12 Federal Reserve Banks which are located in the following cities: Boston, New York, Philadelphia, Cleveland, Richmond, Atlanta, Chicago, St Louis, Minneapolis, Kansas City, Dallas, and San Francisco. Each reserve Bank is responsible for member banks located in its district.
* Who’s interests to you think are being represented? You’s and mine or the banks?
black helicopters aside – I still place the bulk of the liability with the gov who, in your view, caved into the banks (thus the gov is spineless and thus at fault since they hold the $$$ and keys to the printer).
Regardless, the situation remains that if the gov didn’t give in to the banks, this would be turning out different (perhaps not better, but 100% different).
You cannot blame the banks for lobbying/arm-twisting for their own self interests. We all d that every day on our own behalf.
At home you cannot blame your child for eating too much candy just because they asked you 1,000x for it and you the parent gave in and didn’t say no…same as did big daddy government caved in.
These are pretty longshot and tenuous arguments at saying banks = government. You aren’t even trying, and you can do better.
Yeah Jim the banks sure do have the experience and practice of selling foreclosures, but I think their system of looking at foreclosures is dysfunctional. Not just because appeasing investors is even more important than turning a profit, but because of how they account for these homes on their books. Until the house is actually sold, the loss isn’t taken.
They need to look at this as loss mitigation on their books – use the market price to determine the loss they’ve already suffered and count the carrying cost of the loan as monthly losses. That’ll light a fire under their ass and fix the investor dilemma.
clearfund, it’s no use some guys here are one trick ponies and you’ve just seen it all. No matter what the blog post, it’s the same emotional appeal over logic argument every day. Sign of the times.
SDBRI – agreed. If the gov would tweak the accounting to incentivize the liquidation then it would happen. the gov is, unfortunately, and ever increasing puppet master.
Our trick in this world is to not fight the tide, just take a breath, try to figure out which way its is moving, then hop on and take a ride.
Fighting it, may work for a select few who enjoy the ’tilting at windmills’ challenge….and we’re all better off for that.
However, most of us would rather make a good living, enjoy time with the family/kids, put a few bucks away, all with as little stress as possible as we’ll all be taking a ‘dirt nap’ one day regardless of whether its the ‘banks’ or the ‘gov’.
Lobbyists don’t exist in this country.
Nobody from the Federal Reserve has ever held post in government.
The banks are unable to influence the government.
I’m beautiful.
What sucks is we all know what’s going on but there’s nothing you can do about it.
Shadash – here is one thing to do about it. Leverage up on some guaranteed Agency paper (fannie/freddie/etc) and collect your guaranteed income and protected principal.
pays better than treasuries and a CD. We know know that no one is going to let the Agency paper default regardless of the performance of the underlying mortgages.
Note: the paper is NOT the stock of the Agencies but rather various guaranteed mortagage pools which they guarantee.