Archive for the 'Mortgage and Loans' Category

Mortgage rates headed up… Sacramento buyers: Hurry!

Asset managers and Homeowners have finally dropped prices enough to stimulate buyers interest here in the Sacramento area.  But in order to do it, median price of an existing, single-family home in Greater Sacramento declined to  $233,230 in May, a 34.5 percent fall from a year earlier. The California Association of Realtors reported a 18.1 percent increase in sales last month.

For the first time in 30 months we had a year over year increase in number of homes sold.

Now or newest alarm is on mortgage rates…  As if we needed more to challenge our housing market.

Bloomberg says:Homes Less Affordable as Prices Fall, Rates Rise.

We all knew it would happen sometime…

Authored by Forth Hoyt | Discussion: No Comments »

The Worse Housing Bust since World War II?

Sacramento area homesellers, more than most other areas in the country, are battling the most brutal environment in decades…

We were one of the hottest and now one of the hardest hit. In Sacramento’s Curtis Park, even Congress members are losing homes here to foreclosure!

I am seeing way more short sales coming on the market in many areas; I hope that the banks will continue on their path and eventually the short sale will become a viable option for Sacramento area homeowners to avoid foreclosure.

My team and I have closed several; more than anyone else in my office, I think, but we have also lost many to foreclosure. Loan servicers were set up to process payments, not work out loan delinquencies on a massive scale! But recently, most of the banks seem to be getting better about communicating, processing the package, ordering the Broker Price Opinions and/or appraisals, presenting the package to the “Investor”, etc…

We are not seeing the high turnover in the Loss Mitigation Departments and some of the banks are reportedly adding massive staffing.  (I understand Countrywide hired over 2,000 loss mitigation rep’s recently).

Hopefully we are getting closer to some level of predictability and stability in our market here in Sacramento.

Authored by Forth Hoyt | Discussion: No Comments »

“Defaulting middle-class U.S. homeowners are blamed…”

This is kind of getting scarier and scarier… The more I learn bout the mortgage meltdown, the credit crunch, the sub prime debacle, the more I realize just how big our problems may be.

Found a great link today…”Defaulting middle-class U.S. homeowners are blamed, but they are merely a pawn in the game…” You see, just as housing had a crazy bubble, so did the credit markets, borrowed money was used as collateral to borrow more money, that went out in the market, bought assets that went up in value and multiplied; feeding more borrowing…

Here’s how it worked: It was just a larger version of the basic real estate market dynamics that were at work here in Sacramento… crazy to think emotions and exhuberance play such a huge part of even our global markets.

Who’s to blame? I’m not sure. Jury is still out on that… there were so many different factors, so many different players, I guess we are all to blame; except for the poor souls who were priced out or who were smart enough to realize that the crash just had to come…

 

Authored by Forth Hoyt | Discussion: 2 Comments »

Sacramento is one of The six scariest…

Number of foreclosures, steep price drops and high unemployment put Sacramento on the map last week as one of the six scariest real estate markets.

The House of Representatives will take up legislation Wednesday that would broadly address the nation’s housing crisis and could have the government assume control of up to $300 billion in refinanced home loans to be given to distressed homeowners.

It also includes a bill that will provide up to $15 billion (yes, billion, with a “b”) to allow governments to award loans and grants to purchase and rehabilitate owner-vacated homes…

I just wonder how long it is going to take for the industry to figure out they need to get these homes refinanced or sold before foreclosure…  It isn’t hard to see that  a home that is occupied, being cared for, where the grass is watered and mowed, is going to sell faster and for more than the same house with broken windows, a dead, overgrown lawn, with the dishwasher, stove, ceiling fans and light fixtures missing…  not to mention the green pools and missing air conditioners!

This is not only a problem Sacramento area homeowners are dealing with; it is happening all over.

When will the short-sale or short-refinance be embraced and used as a tool to slow the tide?

 

 

Authored by Forth Hoyt | Discussion: 1 Comment »

How long until Sacramento Short Sales become more successfull?

We dread it.  Yet We still do it… Showing the shortsale listing to clients, and then explaining reason why they should “Just Walk Away”…

Like the web site that offers a ”customized” plan to homeowners in default, I find myself many times giving the same advice to buyers in this market to just ignore most short sales. We still go look, to compare pricing and make sure we are not missing the deal of a lifetime, on the home of their dreams, but most of the time, we just look…

If the home is perfect for the buyer, we do write, but we always coach our buyers to keep looking. Most of the time, after weeks of no communication from the listing agent and/or no word form the bank, a comparable home will come on the market that we can actually close on.

In our Sacramento area, Less than five percent of short sales that go pending are actually closing and transferring ownership.  Most of the nine transactions I have closed successfully have taken over 90 days to complete; one took 7 months.

We have been successful on the buyers side only twice, the listings I have closed are usually closed with the third, fourth, fifth buyer contract.

We just lost another listing to the foreclosure sale, it was with Wells Fargo, who for OVER FOUR MONTHS complained that we had never faxed in our sellers package, that they had technical problems, that the fax machine was broken, that the original fax number was no longer a good number (even though our transmission reports indicated ok)… we heard that the account manager assigned had quit and had to re-start the entire process, not once but twice! We heard that the sale date had been extended and that the bpo had finally been ordered…

Then one day an agent called to say she had been assigned the property and wanted our lock box off.  During this five month process, we had seven offers submitted to the bank with completed packages, pre-approval letters, our own BPO, and showing reports… hours upon hours of work…

We tell this and other horror stories of the fifteen or twenty listings we have lost to the forclosure sale at the courthouse steps to  our buyers and usually  get them to concede that it would be far more appealing to get into a transaction on a listing where we could actually plan on closing.

However, in the cases where buyers have parents who live on the same street, or where kids can walk to an important school or buyers who grew up next door and played in the backyard as a child, we will write a strong offer on a shortsale; as long as the listing agent has had shortsale experience or is using a professional  negotiator, that they have a full package submitted to the lender and as long as there is only one bank involed (not a fist and a second) and it is not Wells Fargo!

Authored by Forth Hoyt | Discussion: 1 Comment »

Newest Sacramento Foreclosure News:

 According to the newest research I have done, Sacramento County is ranked 6Th out of 55 in the state for population per foreclosure sale.  Currently there are approximately 1,426 people for each trustee sale here in Sacramento… Right now Sacramento County Has 22,273 Foreclosures; according to Default Research (www.defaultresearch.com), that’s 4.22 percent of the households in Sacramento. Wow.

 “The impact of the credit crisis that began in August is now clearly starting to show its impact,” said ForeclosureRadar… which is the only web site that tracks every California foreclosure with daily updates on foreclosure auctions.  It also has a mapping feature that shows foreclosure activity from a Birdseye view and I use it frequently on listing appointments to show the number of homes in a particular area that are about to become bank owned and add to our inventory;  A great way to get sellers to either throw in the towel right now or to price their home aggressively and stop the bleeding right now.

 The latest foreclosure numbers and transaction reports are showing that finally we are seeing an increase in the number of real estate deals here in the Sacramento area. 

 Numbers for the rest of the state seem just as scary: DataQuick Information Systems of La Jolla reported that lenders sent81,550 default notices in the last three months of 2007. 

 At dinner the other night, I ran into a guy that told me about his own foreclosure ‘plight’: He is a displaced lender; he was in the mortgage business for over ten years and is now doing construction…  He owns four income properties here in the Sacramento area; one in Folsom, Two in Elk Grove and one in Carmichael.  After taking out all the equity on these homes, he put adjustable rate and neg-am mortgages on all of them (negative amortization; a type of mortgage where the monthly payment doesn’t even cover the interest, so the principle actually increases over the length of the loan).  Then he took the cash to put down on a huge house overlooking Folsom lake.  Now his mortgages are all in default and he is not making the payments.  His tenants have no Idea. He is pocketing the rent.

I wonder how many similar stories there are out there…

Authored by Forth Hoyt | Discussion: No Comments »

It just gets worse; More Bad news for Sacramento homesellers…

Authored by Forth Hoyt | Discussion: 1 Comment »

Three More Good Reasons for Sacramento Real Estate Sellers to Get Out Now!

Authored by Forth Hoyt | Discussion: 1 Comment »

Good news, bad news about Sacramento Real Estate and Our Local Economy…

Authored by Forth Hoyt | Discussion: 2 Comments »

Alert to Sacramento Homesellers: More Lower Priced Competition Coming Soon; HURRY!!

Authored by Forth Hoyt | Discussion: 2 Comments »

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