If You're Keeping Up With the Latest Foreclosure News, You'll Want to Check These Posts Out
Here’s a double dose of foreclosure related info from the folks at ForeclosureRadar which I thought you’d find useful.
First off, COO Mark C. Skilling fills us in on “What’s new in Sacramento? (SB 1178 / SB 1275 / AB 1639)”. Looks like some more foreclosure related legislation is headed our way, including:
- Extending borrowers protections from personal liability purchase money loans that have been refinanced (SB 1178)
- Delaying the start of the foreclosure process until after final determination of a loan modification request (SB 1275)
- Providing a way for borrows to be compensated if their home is sold at auction by the lender’s mistake (SB 1275)
- Delaying the start of the foreclosure process until the completion of mediation between the borrow and lender (AB 1639)
For a full breakdown, check out the entire post where he breaks the bills down in detail.
Also worth checking out is founder & CEO Sean O’Toole’s powerpoint deck from his recent talk at SJREI ‘”Foreclosures: Market Update & Opportunities” which does an excellent job of breaking down where we are, how we got here and gives his take on where we’re headed and where the opportunities are. I’ve included screen shots of a couple of slides below and definitely recommend downloading & checking out the deck.
[video] East Bay Trustee Sales Decline in Holiday Shortened Week.
Last week’s holiday shortened auction schedule resulted in an overall decrease in the East Bay Trustee Sale numbers across the board. As a result I focused mainly on the percentages in this week’s video. After a dramatic jump last week in properties taken back by the banks as REO, this week’s numbers showed a reversal of that trend.
Glen’s East Bay Housing Numbers (through May 2010)
The May edition of Glen’s East Bay Housing Numbers show that housing inventories continued to climb at an unusually fast pace, up 64% since the beginning of the year. Since January 1st the month’s supply has increased from 1.7 months to 2.8 months while the pending over active ratio dropped from 1.66 to 1.18.
When comparing these numbers to May of 2009, we’re able to put this in a better perspective.
Last year’s May numbers are similar to this year’s as follows:
1) Active Listings (Homes for sale) are roughly within 2% of last year’s numbers.
2) Pending Sales (Homes in contract) are within 5% of last year’s numbers.
3) We now have a 2.8 month supply, the same as last year.
4) The Pending over active ratio was 1.15 last year, now 1.18.
Although it’s typical to see a swing up in homes coming onto the market from December to May, we haven’t seen an increase of this size so quickly since I have been tracking these numbers (2005).
I think the real question to ask here is not why are we seeing such a huge increase but why were December’s numbers so low?
Government programs and concerns over bank financial statements were an influence. REOs continued to dominate sales while few were coming on to replenish the market. As an REO agent, dealing in foreclosed properties, our assignments dropped off dramatically beginning last fall. Other REO agents confirmed similar circumstances. This is also consistent with what many media sources have indicated.
A comparison over a four month period, between this year and last year, shows a dramatic drop in REO sales. 32% of the sales over the last 4 months have been REOs. For the same four month period last year, 63% of sales were REOs.
This year’s increase was not dominated by distressed properties coming onto the market. Active listings, pending sales, and sales over the last 4 months are all down by about 5% compared to what they were at the beginning of the year.
From what we’re hearing, this may change in the coming months. Foreclosure activity has increased over the last few weeks and we, as well as other agents, are beginning to see new assignments.
All indications are that distressed properties will continue to be a factor for several years.
[video] East Bay Trustee Sale Auction Results Shows the REO Tide is Rising
The dam might not be breaking, but it looks like someone is at least opening a relief valve.
The results from the Alameda and Contra Costa Trustee Sale auctions from the week of May24-28th are in and they show a dramatic increase in the number of properties being taken back by the lender. We also saw a rise in the amount of properties scheduled for auction and a drop in the percentage of those getting postponed.
Will this week’s results continue the trend? We’ll have to wait & see.
Anybody have any predictions?
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