FHA Selling Loans in Default

From the latimes.com – thanks daytrip:

http://www.latimes.com/business/realestate/la-fi-distressed-loan-sales-20140911-story.html

An excerpt:

The protests over the FHA Distressed Asset Stabilization Program are the latest ripple in the wake of the foreclosure crisis, which has seen growing concern about the “Wall Street-ization” of the housing market.

A handful of large real estate trusts and investment firms have scooped up an estimated 200,000 bargain-rate houses in the last two years — in some cases elbowing first-time home buyers out of the way — and turned them into rental properties.

Some of these firms are now buying the loans, getting potential rental properties even before they are in foreclosure. Other buyers aim to profit by collecting mortgage payments or by selling the homes after they foreclose.

From the FHA’s perspective, the program is working, said Carol Galante, the agency’s commissioner.

“We really do consider the DASP to be quite successful in accomplishing what it set out to do,” she said. “That was to achieve significant cost savings for [the FHA] and at the same time offer borrowers a final opportunity to avoid foreclosure.”

Many of the loans that are being sold haven’t had payments on them in two or three years, Galante notes, and they’ve run out of options for being reworked by the FHA. But a new owner may be able to restructure them or reduce principle payments to help borrowers, she said.

Of the 38,000 loans that had been sold before July 2013, about half are still being worked out, according to data released last week by HUD. In about 5% of cases, borrowers are back on schedule making payments. Most of the rest ended either in a foreclosure or short sale or were flipped to another investor and are no longer being tracked.

The program has some successes, said Sarah Edelman, a policy analyst at the Center for American Progress.

About one-fifth of the loans are in “neighborhood stabilization” loan pools, which are geographically concentrated and carry higher workout requirements. Nearly 24% of them are being paid on time. And among the relatively small slice that were sold to nonprofit lenders that partner with community housing groups, the success rate tops 35%.

“This program shows a lot of potential,” Edelman said. “FHA really has an opportunity to build on its strengths.”

http://www.latimes.com/business/realestate/la-fi-distressed-loan-sales-20140911-story.html

Carlsbad’s Downtown Plan

carlsbad

From the utsandiego.com:

http://www.utsandiego.com/news/2014/sep/09/carlsbad-village-barrio-master-plan/

CARLSBAD — Carlsbad is set to host a series of events beginning Wednesday asking the public to share their ideas for future development in the Village and Barrio neighborhoods.

The city is preparing a new master plan for the downtown area that will set guidelines for development. Officials said they hope the master plan will connect business, entertainment and residential districts into one comprehensive area. The Village and Barrio are Carlsbad’s oldest neighborhoods, located along the coast between the Buena Vista Lagoon and Tamarack Avenue and come together along Oak Avenue.

Earlier this year, the city hired Dover, Kohl & Partners, a Florida-based firm, to draft the plan.

The firm will hold several events over the coming week, including two hands-on design sessions, walk-in technical meetings with the design team, an open house and a work-in-progress presentation.

“We’re reaching out very broadly and inviting everyone to come,” said Jason King, senior project director with the firm.

(more…)

More Random

There is a tease in here that wifey will make an appearance, but my camera got turned off – hopefully it’ll be in the movie.  But she has promised to share a few thoughts on camera here soon.

‘Control Fraud’

Finally, Wall Street gets put on trial: We can still hold the 0.1 percent responsible for tanking the economy

Here’s a fascinating story about the prosecution of people who defaulted on liar loans they obtained in 2006.

The U.S. Attorney accused of them of mortgage fraud, and the defense attorneys – some appointed by the state – made the case that banking executives intended to make fraudulent loans.

The defendants were acquitted.

Click on the link below for the full story:

http://tinyurl.com/kot6d4a

Hat tip to daytrip!

NSDCC August Sales

This may be a preliminary look, but there won’t be many more late reporters.  Agents are supposed to mark their sales closed within 48 hours, and we’re a week out.  But even considering the typical end-of-summer slowdown, it looks like sales are plunging.

Today, the MLS shows a paltry 234 detached-home sales last month, the lowest August total of the last four years:

Year
# of Sales
Median SP
Avg. $-per-sf
Avg. DOM
Aug ’09
215
$825,000
$373/sf
83
Aug ’10
210
$838,000
$389/sf
63
Aug ’11
240
$825,000
$389/sf
80
Aug ’12
298
$865,000
$381/sf
84
Aug ’13
324
$953,750
$437/sf
40
Jul ’14
268
$1,050,000
$490/sf
45
Aug ’14
234
$1,011,500
$450/sf
46

While we enjoyed some frenzy-like months during the 2014 selling season, it looks like we’re heading back to the far-more mundane pace of 3-5 years ago.

graph (50)

For sellers who tacked on an extra 5% to 10% to your list price:  If it doesn’t work, at least adjust downward fast enough that the urgency stays higher, and you beat the holidays – Halloween is only seven weeks away!

 

Inventory Watching Football

Meet the 2014 Charger Girls

The number of NSDCC active listings has risen 8% since the first week of June, and sales are slowing.  Unless there is some price adjustment by the sellers, we’re in for a stagnant 4-5 months. – Go Chargers!

The UNDER-$800,000 Market:

Date
NSDCC Active Listings
Avg. LP/sf
DOM
Avg SF
November 25
95
$376/sf
47
1,988sf
December 2
79
$371/sf
50
2,047sf
December 9
72
$383/sf
43
1,954sf
December 16
81
$378/sf
42
1,948sf
December 23
77
$374/sf
49
1,937sf
December 30
76
$373/sf
51
1,950sf
January 6
74
$370/sf
49
1,995sf
January 13
71
$381/sf
44
1,921sf
January 20
72
$384/sf
41
1,877sf
January 27
75
$399/sf
40
1,891sf
February 3
78
$409/sf
41
1,876sf
February 10
82
$395/sf
38
1,927sf
February 17
85
$387/sf
35
1,929sf
February 24
90
$383/sf
37
2,008sf
March 3
82
$397/sf
39
1,942sf
March 10
88
$377/sf
37
2,008sf
March 17
89
$366/sf
34
2,038sf
March 24
79
$369/sf
34
2,031sf
March 31
78
$367/sf
39
2,069sf
April 7
87
$373/sf
32
2,054sf
April 14
97
$380/sf
31
2,000sf
April 21
87
$377/sf
32
2,062sf
April 28
107
$379/sf
29
2,044sf
May 5
114
$376/sf
27
2,046sf
May 12
108
$385/sf
31
2,012sf
May 19
107
$385/sf
0
0sf
May 26
105
$375/sf
34
0sf
Jun 2
102
$376/sf
36
0sf
Jun 9
102
$377/sf
37
0sf
Jun 16
104
$369/sf
35
0sf
Jun 23
111
$380/sf
34
0sf
Jun 30
119
$376/sf
36
0sf
Jul 7
122
$387/sf
36
0sf
Jul 14
127
$388/sf
34
0sf
Jul 21
135
$381/sf
36
0sf
Jul 28
144
$382/sf
37
0sf
Aug 4
148
$379/sf
39
0sf
Aug 11
135
$375/sf
42
0sf
Aug 25
135
$374/sf
43
0sf
Sep 1
126
$377/sf
46
0sf
Sep 8
130
$375/sf
46
0sf

(more…)

Be Prepared

Disaster ready

Thanks daytrip!

http://www.latimes.com/local/la-me-adv-bel-air-disaster-20140905-story.html

Tucked beneath green tennis courts in a hidden corner of Bel Air Crest, a 10-by-20 shed holds enough emergency equipment to stock a small hardware store — a 13,000-watt tri-fuel generator, a satellite phone and neatly organized boxes of medical supplies.

And then there’s the eight portable toilets with pop-up privacy tents.

“You can’t have 1,500 people not able to go to the bathroom,” said Marsha Hierbaum, president of the Bel Air Crest Homeowners Assn.

The shed represents one piece of a years-long effort to ensure all residents of this gated community are ready when the “Big One” hits. In a city populated by people expecting — but many ill-prepared to handle — a major earthquake, it is the affluent and organized hillside neighborhoods that have taken emergency preparedness to the extreme. A 6.0-magnitude earthquake that rumbled through Napa last month underscored for some how important their effort is.

Local residents have long understood that living on winding, narrow roads means they could be on their own when disaster strikes. So they have taken safety into their own hands.

Although Bel Air Crest has fewer than 300 homes, the homeowners association has spent about $50,000 on emergency supplies and equipment over the last three years, including the purchase of a 2,000-gallon water truck. A core group of about a dozen nearby Bel Air Ridge residents has met monthly for more than 20 years to discuss emergency response. And leaders in Beverly Glen recently installed a repeater in a resident’s backyard to help ensure their hand-held radio system will work up and down the neighborhood’s canyons.

First responders “won’t get to us,” Bel Air Crest Operations Manager Rick Cole said. “My board of directors was wise enough to set aside some money each year, and we slowly built up this inventory of supplies so we would be self-reliant.”

The Los Angeles Fire Department’s Community Emergency Response Team program advises locals to store enough food and water to last at least three days after a disaster. Depending on the scale and location of the damage, fire officials say, the wait for help could be even longer.

Read full article here:

http://www.latimes.com/local/la-me-adv-bel-air-disaster-20140905-story.html

Case-Shiller Compared to Peak

Nick at the WSJ showed how the Case-Shiller Index increases are slowing, though it is worth pointing out that the index is still rising. I don’t think prices are rising much if at all, but the index is rising:

http://blogs.wsj.com/economics/2014/08/26/how-home-prices-have-slowed-down-in-five-charts/

Here are  some individual cities compared to their peak:

nick

San Diego didn’t make the cut for that graph, but we are very similar to Los Angeles.  The San Diego Case-Shiller Index has risen less than 1%  per month in each of the last three months, so the idea of getting back to a 250 reading seems far off:

San Diego Case-Shiller Index:

18.8% below the peak in November, 2005, and up 10.2% year-over-year.

 

Case Shiller SD peak

3D-Printed Houses

P1060443

Hat tip to daytrip:

Architects around the globe are racing to build the world’s first 3D printed houses — a breakthrough with profound implications for housing affordability and customization.

In China, a company named Winsun this year said it built 10 3D printed houses in just one day. The reported cost for each: just $5,000.

In Amsterdam, a team of architects has started construction of the 3D Print Canal House, using bio-based, renewable materials. The site is both construction site and public museum; President Obama was among the visitors this year. Hedwig Heinsman, co-founder of DUS architects, the team behind the project, tells Business Insider that in addition to being ec0-friendly, “The main goal, I think, is really to deliver custom-made architecture.”

3D printers build structures layer by layer. But at USC in California, Professor Behrokh Khoshnevis is pushing the fabrication process one step further with what he calls “contour crafting.” He hopes to develop a gigantic 3D printer, able to print whole house in a single run, from its structure to its electrical and plumbing conduits.

The revolution in 3D printed housing, in other words, is well underway.


Read more:  http://www.businessinsider.com/3d-printed-houses-are-here-2014-9#ixzz3COIWo6Gd

Pin It on Pinterest