Tuesday, October 23, 2012
Video Blog: Wells Fargo Short Sale (ASC, Wachovia Short Sale) in San Diego
Short Sale News: Ratings Agency Forecasts a Stronger Year for Short Sales in 2013
Even though the number of
foreclosure filings has risen dramatically in recent months in some parts of the
country—specifically in judicial states—the ratings agency DBRS expects total
foreclosure filings to show evidence of a steady decline in 2013 when compared
to 2012.
This is due to “the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” the agency’s analysts said in a research note issued Monday.
The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012’s first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent.
New short sale actions completed during the first quarter of this year totaled 59,996, according to the OCC’s latest report covering about 60 percent of all first-lien mortgages in the United States. Over the second-quarter period, another 63,403 short sale actions were completed by the 60-percent subject population.
While it will be another two-and-a-half months before the OCC releases its third-quarter mortgage performance data and mitigation numbers, anecdotal evidence from those in the field suggests the increase in short sales is likely to carry forward.
Rudimentary projections based on the quarter-to-quarter increase seen earlier this year would mean another 138,000 completed short sales during the second half of 2012 among the 60-percent first-lien population analyzed by the OCC.
DBRS believes short sales will be an effective loss mitigation tool for curbing the industry’s shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency’s analysts noted.
As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties.
Source: DSnews.com
Reported by Carrie Bay
This is due to “the record number of servicers that are using short sales as their primary loss mitigation tool to prevent delinquent loans from entering foreclosure,” the agency’s analysts said in a research note issued Monday.
The Office of the Comptroller of the Currency (OCC) found evidence of such a shift as early as 2012’s first quarter. With the release of its Q1 mortgage performance report, the federal regulator noted that the number of home retention actions implemented over the January-to-March timeframe was down 36.7 percent from a year earlier, while the number of short sales increased 19.7 percent.
New short sale actions completed during the first quarter of this year totaled 59,996, according to the OCC’s latest report covering about 60 percent of all first-lien mortgages in the United States. Over the second-quarter period, another 63,403 short sale actions were completed by the 60-percent subject population.
While it will be another two-and-a-half months before the OCC releases its third-quarter mortgage performance data and mitigation numbers, anecdotal evidence from those in the field suggests the increase in short sales is likely to carry forward.
Rudimentary projections based on the quarter-to-quarter increase seen earlier this year would mean another 138,000 completed short sales during the second half of 2012 among the 60-percent first-lien population analyzed by the OCC.
DBRS believes short sales will be an effective loss mitigation tool for curbing the industry’s shadow inventory backlog of unsold REO properties. Short sales are an effective way to get the home sold without having to incur the cost of foreclosure, preparing the home for sale, paying a listing agent, and maintaining the property, therefore lowering loss severity, the agency’s analysts noted.
As a result, DBRS expects short sales to be one of the key loss mitigation techniques used in 2013 with more servicers delegating or automating their acceptance and counter offer process in order to be more responsive to short sale bids on properties.
Source: DSnews.com
Reported by Carrie Bay
Sunday, October 14, 2012
October San Diego Real Estate Market Update: Low Inventory, Good Time to Sell!
The number of active listings on the Multiple Listing Service continues to fall. There were about 9,900 available listings in the entire MLS (including some Riverside country properties such as Temecula). Right now, there are about 5,200 available listings in San Diego Country, the lowest number in at least three years.
What does that mean for sellers? It means their listings are experiencing extremely high activity, receiving multiple offers, and many times selling for more than the listing price.
San Diego is experiencing what many other cities around the country can only dream of having – a housing inventory shortage. If you are thinking about selling your home in San Diego, now is the best time to do so. Call me to get your house sold now. For more information, visit http://www.sdmyhome.com
What does that mean for sellers? It means their listings are experiencing extremely high activity, receiving multiple offers, and many times selling for more than the listing price.
San Diego is experiencing what many other cities around the country can only dream of having – a housing inventory shortage. If you are thinking about selling your home in San Diego, now is the best time to do so. Call me to get your house sold now. For more information, visit http://www.sdmyhome.com
Monday, October 8, 2012
Short Sale News: CoreLogic: Home Prices Sustain Recovery with 4.6% Yearly Gain
ome prices continued to trend upwards in August, posting both yearly and monthly gains for the sixth consecutive month, CoreLogic reported Tuesday.
When including distressed sales, home prices in August rose 4.6 percent from a year ago, marking the biggest yearly gain since July 2006. Month-over-month, prices were up 0.3 percent from July to August.
When excluding distressed sales, which are short sales and REO transactions, prices were up yearly and monthly by 4.9 percent and 1 percent, respectively.
CoreLogic’s Pending HPI points to further increases into September. Prices including distressed sales are expected to rise by 5 percent yearly and 0.3 percent monthly.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
On a state-by-state basis, all but six states saw price gains.
Including distressed sales, the five states that appreciated the most over a one-year period were Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8 percent).
Rhode Island led with the biggest decline, where prices fell 2.6 percent, followed by Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent).
Phoenix continued to outshine other metros, rising 21.8 percent from August 2011. Houston ranked second, but was still far behind, gaining 6.3 percent during the same period. Washington D.C. (+4.8 percent), Dallas (+4.3 percent), and Los Angeles (4 percent) were also among the top five.
Source: DSnews.com
Reported by Esther Cho
When including distressed sales, home prices in August rose 4.6 percent from a year ago, marking the biggest yearly gain since July 2006. Month-over-month, prices were up 0.3 percent from July to August.
When excluding distressed sales, which are short sales and REO transactions, prices were up yearly and monthly by 4.9 percent and 1 percent, respectively.
CoreLogic’s Pending HPI points to further increases into September. Prices including distressed sales are expected to rise by 5 percent yearly and 0.3 percent monthly.
“Sustained economic recovery in the U.S. requires a healthy housing market. You cannot have a healthy housing market without price stabilization and ultimately home price appreciation,” said Anand Nallathambi, president and CEO of CoreLogic, in a release. “Improving pricing trends over the past few months and our forecast for continued gains in September bode well for a progressive rebound in the residential housing market.”
On a state-by-state basis, all but six states saw price gains.
Including distressed sales, the five states that appreciated the most over a one-year period were Arizona (+18.2 percent), Idaho (+10.4 percent), Nevada (+9.0 percent), Utah (+8.9 percent) and Hawaii (+8 percent).
Rhode Island led with the biggest decline, where prices fell 2.6 percent, followed by Illinois (-2.3 percent), New Jersey (-1.4 percent), Alabama (-0.7 percent) and Connecticut (-0.5 percent).
Phoenix continued to outshine other metros, rising 21.8 percent from August 2011. Houston ranked second, but was still far behind, gaining 6.3 percent during the same period. Washington D.C. (+4.8 percent), Dallas (+4.3 percent), and Los Angeles (4 percent) were also among the top five.
Source: DSnews.com
Reported by Esther Cho
Friday, October 5, 2012
Short Sale News: Shadow inventory declines by 1.2 million in 2012
Banks trimmed 1.2 million troubled mortgages or foreclosed homes out of the
massive shadow inventory hanging over the housing market in the first half of
2012, according to JPMorgan Chase ($41.71 -0.11%)
research.
The progress could double by the end of the year, though more than 4 million loans and properties would remain. Still, that would be down from a peak of 6 million in 2010.
The nearly 335,000 short sales completed in the first half neared the 420,000 modifications done. Another 470,000 in REO sold as well.
The $25 billion foreclosure settlement with the five largest mortgage servicers in March resulted in many more short sales than modifications.
Chase analysts expect the AG settlement could result in 100,000 principal reduction mods for an average of $100,000 reduced for each borrower. Servicers would have to rally in the back half of 2012 to get there. A total of just 7,000 were completed through June, but banks said they began ramping up offers over the last two months.
By the end of the year, servicers could sell more than 950,000 foreclosed homes and another 670,000 properties through short sale. Analysts expect 800,000 modifications total for 2012.
Estimates on the shadow inventory vary based on how delinquent a loan must be before researchers add it to the pile. Chase estimates include loans that have gone at least 60 days without a payment. Still, the consensus is that banks are making progress and with it, house prices will also improve.
This could then help solve the other major drag on housing: the amount of borrowers stuck making payments on a loan they owe more on than their house is worth.
Should prices increase another 10%, the 10.8 million underwater borrowers could drop to 9 million, Chase estimates.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," analysts said. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: Housingwire.com
Reported by Jon Prior
The progress could double by the end of the year, though more than 4 million loans and properties would remain. Still, that would be down from a peak of 6 million in 2010.
The nearly 335,000 short sales completed in the first half neared the 420,000 modifications done. Another 470,000 in REO sold as well.
The $25 billion foreclosure settlement with the five largest mortgage servicers in March resulted in many more short sales than modifications.
Chase analysts expect the AG settlement could result in 100,000 principal reduction mods for an average of $100,000 reduced for each borrower. Servicers would have to rally in the back half of 2012 to get there. A total of just 7,000 were completed through June, but banks said they began ramping up offers over the last two months.
By the end of the year, servicers could sell more than 950,000 foreclosed homes and another 670,000 properties through short sale. Analysts expect 800,000 modifications total for 2012.
Estimates on the shadow inventory vary based on how delinquent a loan must be before researchers add it to the pile. Chase estimates include loans that have gone at least 60 days without a payment. Still, the consensus is that banks are making progress and with it, house prices will also improve.
This could then help solve the other major drag on housing: the amount of borrowers stuck making payments on a loan they owe more on than their house is worth.
Should prices increase another 10%, the 10.8 million underwater borrowers could drop to 9 million, Chase estimates.
"Although re-defaults and new delinquencies will continue to keep shadow inventory elevated, the rapid decline should prevent downward pressure on home prices going into 2013," analysts said. "Combined with better existing home sales, investors have reason to be optimistic about running recovery scenarios."
Source: Housingwire.com
Reported by Jon Prior
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