Notice of default filings in California rose for the fourth-straight month in August climbing another 16.6%, according to ForeclosureRadar, which also began issuing data on foreclosure rates in four more states and unveiled new search functions on its web site.
In California, foreclosures are down 16.3% from a year earlier, and fewer homeowners found foreclosure relief as cancellations fell 11.2% and 15.6% more homes were lost in foreclosure sales, the firm said.
“Real estate markets are local, not national, and like other real estate trends foreclosure trends vary a great deal by location” said Sean O’Toole, ForeclosureRadar founder and chief executive.
A Raleigh, N.C., real estate speculator pleaded guilty to conspiring to rig bids at real estate foreclosure auctions in eastern North Carolina. The charge and subsequent guilty plea is the first in an ongoing federal investigation into fraud and bidding irregularities at auctions in several North Carolina counties.
The bid rigging was designed to suppress and eliminate competitive bidding on foreclosed properties and buy real estate via public auctions at noncompetitive prices, the U.S. Department of Justice said.
Christopher Deans pleaded guilty Sept. 10 in U.S. District Court in Greenville, N.C., for conspiracy to rig bids during foreclosure auctions in eastern North Carolina from at least as early as April 2003 until at least April 2005, according to the DOJ. Deans, an owner of Raleigh-based real estate investment companies, and his co-conspirators paid each other not to bid against each other on particular properties during the foreclosure auctions, according to the charge.
As a result of the rigging, lien holders and certain homeowners received a lower price for properties sold through the auctions, the department said.
Nick at the WSJ.com has an article (click here) about how the flow of foreclosures will drive pricing in the the real estate market. Some excerpts:
Regulators relaxed mark-to-market accounting rules, giving banks more flexibility in valuing certain real-estate assets and removing some of the impetus for banks to quickly foreclose.
Meanwhile, the Obama administration put in place an ambitious program to modify mortgages. The Home Affordable Modification Program has fallen short of its goals. So far, fewer than 500,000 loans have been modified, below the target of three million to four million. Yet the program served as a “closet moratorium” on foreclosures that stanched the flow of bank-owned homes to the market, said Ronald Temple, portfolio manager at Lazard Asset Management.
While more tax credits aren’t likely, policy makers could still attack the supply problem by, for example, taking foreclosed homes off the market and renting them out.
The lenders and servicers are going to keep coming up with ways to delay the inevitable. You can’t blame them, it is working well in their favor – the lenders/investors are spared the losses for now, and service fees continue to rack up.
Here is a comparison of the counts of local SFRs on the auction list:
Town or Area
Dec ’09
Today
Cardiff
21
23
Carlsbad
204
161
Carmel Valley
43
40
Del Mar
14
11
Encinitas
98
69
La Jolla
53
29
RSF
21
22
Solana Beach
15
19
NSDCo.Coastal
469
374
It’s possible that fewer homeowners are in default, but it’s more likely that servicers aren’t pursuing foreclosures in earnest. I still think that if the servicers cut loose with more REO listings, the subsequent surge in sales could cause pricing to trend upward before too long. There are plenty of buyers, we need more well-priced inventory!
The market in Rancho Santa Fe, 92067 has been been fairly stagnant lately, with only ten closings in the last 30 days (four in the Covenant), with 282 active listings. How about La Jolla?
The detached-listing stats for La Jolla’s 92037:
Listing Status
# of
$-per-sf
DOM
Active
291
$933/sf
119
Contingent
20
$572/sf
211
Pending
41
$713/sf
101
Solds, last 30 days
17
$620/sf
84
Solds, YTD
171
$625/sf
91
Solds, 09YTD
152
$687/sf
99
What does an economy model look like? Here’s an REO that just hit the market at $418sf:
On November 1st, 2003, five-year-old Evan Parness, while watching the news with his father, learned of the devastation of California’s worst firestorm in the state’s history. Wide-eyed, this young boy told his father he wanted to send toys and clothes to the children who had just lost everything.
Four days later, 1000 emails, and 100 volunteers combined with immeasurable love, the boy’s father and friends began a journey which has spun into an ever-growing foundation. Off to California in a U-haul truck, full of toys and relief items, with a banner that read “New York Says Thank You,” never did they realize what that statement would be.
Jeff Parness along with Stavros Michailidis and Marius Calin, and with help from Kevin Potente, drove cross-country to deliver clothes, children’s toys, and other relief items to the fire victims in Southern California being aided by Father Joe’s Villages/St. Vincent de Paul in San Diego. A large banner on the truck read ‘New York Says Thank You’ as a way to promote the journey and its meaning and to gain additional donations. People nationwide- from West Virginia to Oklahoma to Arizona—came through, donating whatever they could to the truck.
Over 500 New Yorkers and Americans from all across the country participated in these initial efforts. With the help of the Lions Club, the Rodeph Sholom School in New York City, and JetBlue Airways, The New York Says Thank You Foundation outfitted a recreation room for the 300 children of Harbison Canyon, CA, a rural community east of San Diego in which 287 of 388 homes burned to the ground in the October 2003 wildfires
Every year on the anniversary of 9/11, New York father and son take New York City firefighters and other New Yorkers, who personally experienced 9/11, to help rebuild a community affected by a disaster. The New York Says Thank You Foundation has helped rebuild homes burned in the Southern California wildfires; replanted 428 trees in two small Illinois towns devastated by an F3 tornado; rebuilt a 140-year-old church destroyed in a deadly Indiana tornado; and rebuilt the tornado-ravaged home of a Texas family that has cared for Disabled Veterans for three generations; helped rebuild the homes lost in Hurricane Katrina of a 6-year-old boy in Slidell, Louisiana battling Leukemia and a 38-year-old mother in Bay St. Louis, Mississippi battling terminal cancer; and built a 14000 sq. ft. 4-H fairground pavilion/barn for the town of Greensburg, Kansas that was 95% destroyed by an EF-5 tornado.
Amazingly, volunteers from every community helped in the past, continually show up year after year, no matter the location, to “pay it forward.” From a 5-year-old’s idea, the group has grown to include dozens of firefighters from across the nation (including many from NYFD) and volunteers from all walks of life. The giving nature of this movement is a true lesson in humanity to everyone involved. Next year, a documentary film is presenting the Foundation’s story from conception to future growth, carefully weaving between stories of devastation, feelings of unconditional love, patriotism, sharing and above all else, what is at the core of this great country- Heart.
Below is a clip of last year’s project; rebuilding a scout camp devastated by a tornado in the summer of 2008, which killed four boy scouts:
Marilyn Monroe’s old house in Brentwood just sold for 7% over list price.
“Urged by her psychiatrist to ‘put down roots,’ she had found the house and bought it—all by herself. She had liked the house and took a trip to Mexico to look for furnishings and fabrics. She especially liked the garden, where she often played with her poodle, Maf.” According to the Marilyn Monroe Memories web site, “This was the first property that Marilyn Monroe ever owned. She took out a mortgage which started on 1st March 1962, was for 15 years, and Marilyn made monthly payments of $320. The house was situated at the end of a small cul-de-sac, and was very private, away from the busy roads.”
12305 5TH HELENA Dr Los Angeles, CA
Beds:
4
Baths:
3
Sq. Ft.:
2,624
$/Sq. Ft.:
$1,467
Lot Size:
0.53 Acres
Year Built
1929
Style:
Hacienda
Community:
Brentwood
MLS remarks: Sprawling & very special authentic 1929 Hacienda situated behind tall gates at the end of a quiet cul de sac on over 23K sq ft (per assessor) of tree-filled grounds. The crown jewel & largest property of all the Helenas (one of Brentwood’s most romantic & coveted locations) affording lovely vistas & grt privacy & seclusion yet in close proximity to San Vicente shops & restaurants & the Sunday Farmer~s Market. Thick walls, traditional casement windows, polished concrete & terra cotta tile floors, original wood beamed ceilings & period hardware & tiles create a warm, inviting & unique environment. French doors open to private courtyard, expansive grassy yard, pool, citrus grove & beautiful setting. 4 bedrooms, 3 baths + formal living room, family room, office, pool-side game room & separate children~s play house. Sun-filled cook~s kitchen opens to spacious courtyard garden. Wonderful charm & great architecture inside & out. Magical property in the finest Brentwood neighborhood.
The final guesses are in for the sales price of La Cucharacha, listed for $114,900 – see comments for the list.
Six all-cash offers have been submitted so far!
BofA will be requesting their ‘highest-and-best’ offer on Monday, once the listing has been on the MLS for their minimum 3 days. It looks like it’s going to end up over $140,000!
