Another example of how the REO business is working.

This took 5+ months to get to market (it was assigned to us on March 11th), and it still doesn’t look very appealing. 

If the banks were taking a while because they were spending the right money to fix them up to sell for retail price, it might be understandable.  Or if they were watching the calendar, and pushing to get the cheesey ones on the market during the summer selling season, it would be smart too.

But we didn’t get either: 

Buying A House Sight Unseen

In the comments of the last post, we were discussing the thought of making an offer on a house that you haven’t seen.  It is definitely more personal when you are looking at a primary residence – so let’s start with an investment property!

The intent of this video is to give you enough ingredients to be able to calculate the cost of repairs, and hopefully determine if this property pencils out for you, prior to visiting in person.  Buyers are checking comps in advance, and just need to estimate repair costs on any property, right?

As the listing agent, do I worry about verifying that buyers have seen the property? 

On vacant properties – No. 


Because on vacant houses, listing agents don’t know if ANY of the offerors have seen it – unless I stake out the property, slumped down in my car across the street, Rockford-style.  Yes, I would prefer if buyers have seen it, but when asked, every buyer’s agent says, “of course”.

I’m going to assume that NONE of them have seen it, and instead I’ll provide ample evidence to give everyone the most thorough experience of what you are buying, before you go.

Try it out for yourself – those who follow the blog have already seen this house a few times, here is the final cut – plus for those who need to see it, we’ll make that easy too, by conducting open house late in the afternoon during the first day on the market (in effect, our actual stake-out!):

Federal Share of REOs is Rising

In trying to keep my promise to post only NSDCC-related data, here’s a national article from G-S, with NSDCC relevance at the bottom. Hat tip to Aztec for sending this along:

As of 1Q, the number of seriously delinquent federally backed loans surpassed the number held by banks and private label securitizations and now accounts for the majority of seriously delinquent mortgages (seriously delinquent mortgages comprise loans in the foreclosure process as well as loans that are 90-plus days delinquent but not yet in foreclosure).

This shift is due to the persistently elevated level of seriously delinquent loans among Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA), in contrast with private-label and bank-held loans, where serious delinquencies peaked in 2009 and have declined significantly since.

The chart below shows the number of seriously delinquent mortgages backed by federal entities and the total mortgage market; the right axis shows seriously delinquent loans as a share of the total.

The federal share of REO property is also rising.


Foreclosure Cruise

Thank you to those who made the ultimate sacrifice for their country, and to those who served.

The previous generation was proud to serve – My dad was a ROTC second lieutenant in the U.S. Army, and my two uncles served as well – Tom was in the Navy, and John was in the Army too.  All three served between Korea and Vietnam, so they didn’t face any live fire, but their contribution is worthy.

My Uncle John passed away last night, after a bout with Parkinsons.  He was a great man, and we’ll miss him dearly – RIP.

(this video was done yesterday)

Double-Dip Assault

It’s all over the news – the housing double dip is here.

They say that the DD is caused by an overload of foreclosures dragging down prices – but they are talking about the overall national market. 

Are the recent trustee sales building a backlog of REOs around San Diego?

San Diego County Trustee-Sale Results, Monthly

It looks like more of the same around here – just when the servicers get some momentum, they turn off the spigot. There have only been 14 successful trustee sales in NSDCC over the last two weeks, so we’re back to the 1+ foreclosure per day.

The threat of future foreclosures is always lingering – could the worst be yet to come?  With the banks and servicers controlling the flow, there doesn’t seem to be much reason to expect a flood coming anytime soon – or ever.

How many REOs are floating around in the shadows?

Here are the San Diego County properties owned by each lender, the number of SFRs they own in North San Diego County Coastal, and the count of how many of those aren’t listed yet:

REO Owner SD All Prop NSDCC SFR NSDCC SFR not listed yet
Fannie Mae
Wells Fargo
Freddie Mac
Bank of NY
Bank of America

In the depressed areas where REOs are abundant, there’s no surprise to see some can-kicking, but around North County Coastal it’s been quiet. A few of the shadows have just been foreclosed, so you know there is some lag for evictions, repairs, and processing.  Others are involved in litigation too, so it doesn’t appear that they are purposely delaying the process much around North SD County Coastal.

The buyers around NSDCC will welcome the 25 well-priced SFR REOs when they hit the open market over the next couple of months – expect bidding wars!

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