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Oct 13, 2009 | No Comments | Sean Mills
Look alive all you people as we have new tenant/foreclosure laws thanks to our governor, Arnold.-Sean
New Legislation Signed
This information is for California tenants only. Governor Schwarzenegger signed two pieces (yes, two!) pieces of legislation benefiting California tenants. The first, SB 290 (sponsored by Mark Leno) makes the 60-days’ notice requirement for tenant evictions permanent. This [...]
Look alive all you people as we have new tenant/foreclosure laws thanks to our governor, Arnold.-Sean
This information is for California tenants only. Governor Schwarzenegger signed two pieces (yes, two!) pieces of legislation benefiting California tenants. The first, SB 290 (sponsored by Mark Leno) makes the 60-days’ notice requirement for tenant evictions permanent. This means that any tenant in the state who has lived in her rental for one year or more cannot be evicted with less than 60-days’ get prescription drugs without prescription notice in “no cause” evictions. And it means that tenant groups don’t have to mobilize every couple of years to renew the legislation. However, this does not affect tenants protected by local “just cause” ordinances; those tenants cannot be evicted without cause.
Source Article
The second bill, SB 120, sponsored by Alan Lowenthal, protects tenants in foreclosed or soon-to-be-foreclosed properties against utility shutoffs when the landlord or lender fails to pay utility bills. In particular, tenants in single-family homes now have the same protection as tenants in multi-family units. Utility companies (gas, electric, water, heat) are now required to give tenants notice that the utility is to be cut off for nonpayment, and to provide a procedure for the tenant or tenants to establish a payment account without having to pay the former landlord’s arrearages. Tenants in single-family homes in outlying communities were often forced to pay the former landlord’s water bill to keep the water on. (Sacramento Suburban Water was notorious for this.) No longer.
It also allows tenants who pay the bills, when these costs have been included in the rent, to either deduct the cost from their rent payments or sue the landlord for the cost of establishing service or paying the bills. And it prohibits utility companies from requiring large deposits if the tenant can show that she pays her rent on time. (Utility companies were frequently requiring both payment of the arrearages and a large deposit to keep utility service.) Utility services are required to establish and publicize procedures for tenants to deal with these situations; notice of those procedures should be delivered along with any shutoff notice. We would hope that they also publicize them in their newsletters and on their websites as well.
Oct 2, 2009 | No Comments | Sean Mills
Banks appear to be resorting more often to a maneuver that helps them avoid acquiring property through foreclosure.
Before banks can acquire homes in foreclosure cases, there is a public auction, often at a county courthouse. These auctions are typically called trustee sales or sheriff sales. Normally, the lender or loan servicer (an entity that collects [...]
Banks appear to be resorting more often to a maneuver that helps them avoid acquiring property through foreclosure.
Before banks can acquire homes in foreclosure cases, there is a public auction, often at a county courthouse. These auctions are typically called trustee sales or sheriff sales. Normally, the lender or loan servicer (an entity that collects payments and handles administrative chores including foreclosure) makes a bid well above what investors are willing to pay for the home, and in those cases the bank ends up owning the property. It becomes part of the vast REO (real-estate owned) inventory that banks must sell off.
But sometimes the lender or loan servicer makes a bid low enough to tempt others to step in with a higher offer and win the auction. That has been happening more often lately in some parts of the country.
Sean O’Toole, chief executive officer of online pharmacies target=”_blank”>ForeclosureRadar.com, a research firm in California, estimates that in August 19% of homes sold in trustee sales in California went to investors rather than to a foreclosing lender, up from just 4% a year earlier.
In Adams County, Colo., part of the Denver metropolitan area, investors bought 16% of homes at trustee sales in the three months ended Aug. 31, up from 5% a year earlier, according to Jon Goodman, a lawyer in Boulder who invests in foreclosed properties. Mr. Goodman says more investors are bidding at these auctions because of “a shortage of regular inventory that works for fix and flips.” In addition, he says, some lenders want to avoid the hassles of acquiring, repairing and selling too many houses.
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Oct 1, 2009 | No Comments | Sean Mills
Here is some more data from the Office of the Comptroller of the Currency and the Office of Thrift Supervision: OCC and OTS Release Mortgage Metrics Report for Second Quarter 2009
Modified Loan Performance … [T]he percentage of loans that were 60 or more days delinquent or in the process of foreclosure rose steadily in the [...]
Here is some more data from the Office of the Comptroller of the Currency and the Office of Thrift Supervision: OCC and OTS Release Mortgage Metrics Report for Second Quarter 2009
Modified Loan Performance … [T]he percentage of loans that were 60 or more days delinquent or in the process of foreclosure rose steadily in the months subsequent to modification for all vintages for which data were available. Modifications made in third quarter 2008 showed the highest percentage of modifications that were 60 or more days past due following the modification. Modifications made during fourth quarter 2008 and first quarter 2009 performed better in the first three to six months after the modification than those made in the third quarter 2008.
Note: This doesn’t include HAMP yet because all of those modifications are still in the “trial period”. That raises a question: If a borrower re-defaults during the trial, will they still be considered a “re-default”? Something to watch for if the re-default rate drops sharply next quarter – they might be excluding the trial period re-defaulters.
Click on graph for larger image.
This graph shows the cumulative re-default rate by quarter of modifications. About 25% to 30% of modifications fail in the first three months.
For Q1 and Q2 2008, about 55% of borrowers have re-defaulted. Q3 2008 will probably be worse, and Q4 2008 and Q1 2009 about the same.
Over time, I expect a very high re-default rate since many of these modifications are just “extend and pretend” (the missed payments and fees are added to the principal, and the rate is reduced for a few years), although about 10% of borrowers received a principal reduction in Q2 (more than double as in Q1).
online prescription drugs without a prescription target=”_blank”>Source Article
Oct 1, 2009 | No Comments | Sean Mills
When a bank forecloses on a home, you probably think that sticking a “Bank Owned For Sale” sign in front of the property soon follows.
Or when a homeowner misses three, four or even nine months of payments, you probably think the bank’s next step is sticking an eviction notice on the door.
Generally speaking, you would [...]
When a bank forecloses on a home, you probably think that sticking a “Bank Owned For Sale” sign in front of the property soon follows.
Or when a homeowner misses three, four or even nine months of payments, you probably think the bank’s next step is sticking an eviction notice on the door.
Generally speaking, you would be correct. Every day banks are placing foreclosed properties on the market, and every day homeowners who default on home loans are receiving eviction notices. That just has to happen when some 350,000 homes a month, or more than 4 million a year, are being foreclosed on across the country.
But presuming that all those properties will hit the market in a timely fashion or that there’s a defined period for a foreclosure-related eviction, though, would be incorrect.
Fact is there are no prescribed time periods for either scenario. Because of this arbitrary manner in which homes become official statistics, there’s a chunk of homes that miss the radar screen of economists.
This “hidden inventory,” as it is known, is the subject of much debate.
Are banks holding back properties to keep prices stabilized in order to minimize loss on bank-owned sales?
Is incompetence coupled with an overwhelming number of foreclosures causing delays in homes hitting the market, skewering the actual real estate picture?
Sean O’Toole, founder and CEO of ForeclosureRadar, a Discovery Bay-based
tracking firm, is one of the few voices who believes there is no grand conspiracy by banks when it comes to the housing market. In California, he believes this hidden inventory represents about a month of backlogged homes that normally would be on the market.
On a recent post on the ForeclosureRadar.com, O’Toole wrote, “At the current rate of REO sales, that means that even if banks are purposefully withholding properties, the truth is that it can’t be very many — a month at most.”
While O’Toole’s math uses actual figures to extrapolate the hidden inventory number, the real wild card lives and breaths in those homes that are in limbo, here payments have stopped, the homeowners remain and the bank is doing nothing but waiting for who knows what. There is no official figure for those.
With the country looking at 4 million foreclosures this year, conspiracy theorists can look at these homeowners in limbo and use it as fuel for their argument that banks are manipulating the housing market by keeping them out of that statistical world by doing nothing.
My take: The housing market is at a critical junction, and there is a real potential for a flood of new foreclosures.
Along with the unknown number of properties in purgatory, there are some 1 million pay-option mortgages originated at the height of the real estate bubble that are due to reset throughout the next year. Some will see their payments double.
These prescription drugs online without prescription two unknown factors — homeowners in limbo and pay-option resets — do not appear to be taken as a serious threat in the real estate industry, but you can be sure they will certainly feed the foreclosure fire well into next year.
Source Article
Sep 16, 2009 | No Comments | Sean Mills
As the chart illustrates there is more pain to come on the horizon in relation to resetting buying drugs online without prescription loans but this time in the upper end of the spectrum. The average loan at this level is four times the value of the sub-prime loans that were made. -Sean
As the chart illustrates there is more pain to come on the horizon in relation to resetting buying drugs online without prescription loans but this time in the upper end of the spectrum. The average loan at this level is four times the value of the sub-prime loans that were made. -Sean
Sep 2, 2009 | No Comments | Sean Mills
I am seeing a lot of this going on from the foreclosures in Arizona and California. The source article is from the OC Register. -Sean
Investors flip foreclosures
August 17th, 2009, 1:27 pm · 29 Comments · posted by Mathew Padilla
(Update: Foreclosure auction prices added.)
Three of eight properties sold at a July 16 foreclosure auction, known as [...]
I am seeing a lot of this going on from the foreclosures in Arizona and California. The source article is from the OC Register. -Sean
(Update: Foreclosure auction prices added.)
Three of eight properties sold at a July 16 foreclosure auction, known as a trustee’s sale, that I visited are now listed for resale. I have been visiting auctions and tracking Drugs Without Prescription the houses and condos to see if investors plan to hold and rent out what they buy, or simply flip them.
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Aug 21, 2009 | No Comments | Sean Mills
Another great read from Mish, it is still amazing the type and Buy Generic Cialis Online speed which we now get information on important topics like this. To think people are still buying and flipping in California and Arizona with this type of inventory lingering. It feels a lot like musical chairs only with [...]
Another great read from Mish, it is still amazing the type and Buy Generic Cialis Online speed which we now get information on important topics like this. To think people are still buying and flipping in California and Arizona with this type of inventory lingering. It feels a lot like musical chairs only with real estate I hope no one you know gets caught standing when the music stops again..-Sean
Brace for a Wave of Foreclosures, the Dam is About to Break
A summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic shows that Nearly One-Third Of All Mortgages Are Underwater.
• More than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, 2009 according to newly released data from First American CoreLogic. As of June 2009, there were an additional 2.5 million mortgaged properties that were approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage nationwide.
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Aug 18, 2009 | No Comments | Sean Mills
Brace for a Wave of Foreclosures, the Dam is About to Break
A summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic shows that Nearly One-Third Of All Mortgages Are Underwater.
• More than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, [...]
Brace for a Wave of Foreclosures, the Dam is About to Break
A summary of Second Quarter 2009 Negative Equity Data from First American CoreLogic shows that Nearly One-Third Of All Mortgages Are Underwater.
• More than 15.2 million U.S. mortgages, or 32.2 percent of all mortgaged properties, were in negative equity position as of June 30, 2009 according to newly released data from First American CoreLogic. As of June 2009, there were an additional 2.5 million mortgaged properties that were approaching negative equity. Negative equity and near negative equity mortgages combined account for nearly 38 percent of all residential properties with a mortgage nationwide.
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