Mike’s Real Estate Show

A listener asked me if the rumors of “Multiple Offers” was nothing but Realtor Hype?
If Realtors could “hype” up business through manipulation of our MLS pricing structure, you’d think we’d all done this before  the 30-50% pay-cut we’ve all taken over the past 3-4 years plus the lost equity of our clients! In the REO market, for my County of Sonoma $200-$500,000, we are getting multiple offers. It is a SELLER’S market for many an assett manager.

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MAKING SENSE OF THE LATEST FORECLOSURE NUMBERS FOR CONSUMERS–This synopsis provided by the California Assoc. of Realtors

3.6 percent of borrowers were at least 90 days late on their payments in December – the highest percentage in more than five years, reported the Mortgage Bankers Association. Even so, it’s important to remember that 96.4 percent of borrowers were on time with their mortgage payments. And new foreclosures accounted for only 0.83 percent of all home mortgages in the fourth quarter of 2007, up from 0.54 percent in 2006. Read the rest of this entry »

This Easter Sunday we are discussing interest rates and foreclosed properties. Here are some terms you’re hearing everyday which might need clarification. In today’s market we have “pre-foreclosure”, “Foreclosure” and “Post-Foreclosure” properties and events along this cycle. A “Short-Sale” is a Seller who owes more on the property through his loans than the property is WORTH. Read the rest of this entry »

The civil Code for foreclosures is very long and complicated. I put this up to simply give you an idea as to WHY you should consult an attorney!! But it does spell out the processs in no-nonsense terms. Use it as a guide. Since I don’t practice law I leave it at that!!

http://www.leginfo.ca.gov/cgi-bin/displaycode?section=civ&group=02001-03000&file=2920-2944.5

Foreclosure Process

California has a non-judicial system to carry out a foreclosure of a deed of trust. That means  that no court procedure is required for a lender to sell the property to satisfy the debt. Some states carry out a formal judicial process which tends to be lengthier, and frequently have a redemption period after the sale. Here in California, the judicial process is available, but rarely used. The following steps will outline what is all involved in a non- judicial foreclosure.

1.) MISSED PAYMENTS OCCUR. Usually after the third missed payment the lender will initiate a foreclosure. There is no law that dictates the number of payments that must be missed, but most trustees won’t proceed unless the loan is more than 30 days in arrears. This is done by issuing a Declaration of Default and Demand for Sale which is passed on to the foreclosure trustee.

2.) DEPOSIT DEED OF TRUST AND NOTE WITH TRUSTEE. The lender (beneficiary) deposits the deed of trust and note with a foreclosure trustee. If there has been an assignment of the deed of trust, such assignment must also be deposited. If the original note has been lost, foreclosure can still be commenced, but the beneficiary must post a lost instrument bond in most cases. (18 more steps follow this first one–get to know the process if you are having issues with your loan and may be easing into this process with your loan!) Read the rest of this entry »

Here’s a great article which I found today as an alert from the California Association of Realtors. I think we need to always put “National” numbers into perspective. We sometimes think, and rightly so, that our little world of Sonoma County is the center of the universe. This may be true for us but projecting our financial woes on the rest of the country gives one a dismal outlooks as it’s not all that bad out there!! Read on! 

 Foreclosure ‘crisis’ is overblown
Sure, there are pockets of pain around the US, but it’s not as if most Americans are losing their homes. More than 99% of homes aren’t in foreclosure.
By Scott Burns MSN Money
A recent list of year-end mortgage foreclosure rates in 100 top metropolitan areas drew a lot of attention. Released by RealtyTrac, a company that compiles data on home foreclosures, the list showed the number of foreclosure filings in each metro area, the percentage of homes being foreclosed and the percentage change from the previous year.

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Foreclosures for a first timer homebuyer is NOT recommended!! The due diligence is zero and must be done prior to the actual foreclosure which in our County of Sonoma is done on the courthouse steps. Now days most properties going to auction are ending up BACK in the hands of the Lender unless the Lender wishes to also sell the property on the courthouse steps. If you’re tracking foreclosures then you know the process and have been notified of the property by the notice of default filing. From that point it is 122 days to sale unless postponed by the lender. During that time you can attempt to do your due diligence on the property. Read the rest of this entry »

Homeowners, first off, you are NOT ALONE! Don’t feel guilt over this predicament. If you are now in defaults with a first AND a second note on the subject property or just a first–do not delay–call your lender NOW! Better yet, call your Realtor who sold you the property and then call the mortgage broker/lender who originated the loan for you; misery loves company!
 

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Our foerclosures seem to be limited to production housing areas and certain zip codes. We have a heavily hispanic area where many, many sub-prime loans dominated the buying landscape 2-3 years ago. It’s been a bloodbath there. Both areas are “Westside” areas with the most affordable price points and primarily first time homebuyer neighborhoods and investor activity. Read the rest of this entry »

Listeners. Find attached information on the rate of increase of Notices of Default for all the Counties of California. 2nd quarter last year of 2006 in Sonoma our NOD’s where 202, and the 2nd quarter of 2007 they are now at 462 which is a 128.7% increase which when standing alone seems rather impressive. Remember, we have 460,000 residents in the County and many, thousands of households. Also, remember a very small fraction actually go through the entire process to sale at the courtsteps. Just trying to give you folks some perspective.