National Mortgage Delinquency Numbers for Q1 2009

The Certified Distressed Property Institute has just released the National Mortgage Delinquency Numbers for the first quarter of 2009.  These are statistics compiled by ethe Mortgage Broker’s Association and reflect a significant increase in the number of homeowners in trouble with their mortgage.

The Certified Distressed Property Institute trains real estate agents to better help distressed homeowners avoid foreclosure.  Their web site is a wealth of informations on the subject and worth a visit.  Check it out at:

http://www.CDPE.com There are over 500,000 licensed real estate agents in California.  There are only a little over 8000 certified CDPE agents in the country.  I recommend that distressed home owners consult a CDPE agent for assistance.

Distressed homeowners can find help in Sacramento, El Dorado and Placer counties by contacting Mike West, Realtor, CDPE, e-PRO & Sr. Loan Consultant.  (916) 337-0658

LOAN MODIFICATION FRAUD EXPOSED BY CALIFORNIA DRE

CONSUMER ALERT!

 California Department of Real Estate issues a fraud warning for Home Owners in Financial Distress!

FINALLY, the California Department of Real Estate has issued a fraud warning to financially distressed California home owners, warning about loan modification scams rampant in the market place today.  Last July, the DRE had fewer than 10 complaints involving loan modification companies; today the department has 750 pending investigations.  In addition, just since last October the DRE has filed more than 200 Desist and Refrain Orders!  

Obviously, the hucksters and con artists have found easy pickings with their loan modification scams. Unfortunately, not enough of these people will end up in jail.

A list of the companies that the DRE has filed an action against can be viewed at http://www.dre.ca.gov/cons_drs.asp . If you have been considering using a loan modification company, or are presently involved with one, check the list to ensure that they are not included.

The DRE does mention that “not all firms who collect advance fees for loan modification services do so illegally.”  However, if you are considering employing the services of a company that does charge fees up front they warrant very close scrutiny.  Real Estate brokers participating in this practice must have their advance fee agreement reviewed by the DRE legal staff prior to its use.  Those not licensed by the DRE do not have to submit to this scrutiny.

The California Association of Realtors reports that there is a new loan modification scam by hucksters using legislative bill number 3648 to make them look like a government entity, complete with a seal closely resembling a government seal.  They are not affiliated with the government.

A copy of the complete DRE consumer alert is available on request.  Simply e-mail your request to Mike@SellYourVilla.com or call 916 337-0658.

Folsom, CA REO SALES DATA MARCH 2009

This is a continuation of my posts reporting on the REO sales for Folsom, CA. This post covers March 2009. There were 9 REO homes sold in March, down from 11 in February. That was only 18% of the total homes sold in Folsom for the month (50). This may be a reflection of the moratorium on foreclosures mentioned by some of the larger banks last month. The total number of available REO homes in Folsom has declined significantly. There are only 9 presently available.

The average days-on-market increased to 47, compared to 34 last month. Two of the REO homes that sold had been on the market for over one hundred days. The average cost per square foot dropped to $ 185, down two dollars from February. More significant is the drop in the cost per square foot for all properties sold in March. That number dropped from $ 195 to $ 187, almost totally negating the savings gained from purchasing an REO home. One would suspect that the number of short sale properties has had an impact on this statistic.

One additional item of import. At present there is less than a FOUR month inventory of single family homes in Folsom. It is no longer a buyer’s market, or a neutral market; Folsom is now a seller’s market!!

The data follows:

REO SALES FOR EL DORADO HILLS & FOLSOM,CA JAN ‘09

REO Sales Data for El Dorado Hills & Folsom, CA January 2009

This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA. for January 2009.

The number of REO properties sold in the subject area in January was 26, down from 32 in December.

The average days-on-market increased significantly to 70, up from 29 the previous month. One home in El Dorado Hills sold after being on the market for 458 days. There were four others that sold in January that had been on the market for over 100 days. These homes added significantly to the overall days-on-market average.

Only 19.3% of the REO homes that sold in January sold in less than 14 days, a big drop from December. Also 11.6% of the REO homes sold in less than 7 days. That was also a drop from December.

Of the 60 homes that sold in the area in January, 26, or 43.4% were REO properties. This percentage is up from 36% in December and the first time that REO dales have exceeded 40% of the total number of homes sold in the area.

Of all REO properties sold, 27% sold for the asking price or more, a small decrease from December. One sold for 103.45% of the final asking price. The best deal was a home on the market for 79 days that sold for 88.88% of the final asking price. The banks are not dropping their prices on most of these REO properties.

The average cost per square foot for all homes in the area sold in January dropped slightly to $ 178.00. The average cost per square foot for REO properties decreased to $ 160.00, down nine dollars from December. That still equates to a 10% reduction in cost for those who purchased REO properties. Note that these figures are considerably lower than they were in January of 2007, when the cost per square foot for all properties sold was $ 206 and for REO properties at $ 188. This represents an overall drop in cost of almost 14% in the past year.

REO properties continue to be a good buy. However, one must still factor in condition issues and the associated repair costs before making an offer.

Specific Data follows:

REO SALES DATA FOR EL DORADO HILLS & FOLSOM, CA OCTOBER 2009

This post continues my study of REO (Bank Owned) home sales in El Dorado Hills and Folsom, CA.  This blog covers October 2008.

 

The number of REO properties sold in the subject area in October was 39, one less than in September.

 

The average days on market increased slightly to 55.  One home in El Dorado Hills sold after being on the market after 429 days.  That sale obviously had an impact on the average days on market for the month.  Four others sold after having been on the market for over 100 days.

 

Only 26% of the REO homes sold in October sold in less than 14 days, down from 35% in September.  Also 12.9% of the REO homes sold in less than 7 days in October.

 

Of the 130 homes that sold in the area in October, 39, or 30% were REO properties.  This percentage is down slightly from September.

 

Of the REO properties sold, 53.9% sold for the asking price or more, one for 107.18% of the final asking price.  The best deal was a home on the market for 184 days that sold for 86.25% of the final asking price.

 

The average cost per square foot for all homes in the area sold in October increased slightly to $ 194.00.  The average cost per square foot for REO properties also increased to $ 175.00.  That still equates to nearly a 10% reduction in cost for those who purchased REO properties.

 

REO properties continue to be a good buy.  However, one must still factor in condition issues and the associated repair costs before making an offer.

 

Specific Data follows.

                               Original                 Listing Price                                            SP as %          SP as %     
              DOM     Listing Price       at Time of Offer          Sold Price   % Orig.Price  Final Price
1   Fol      9       $184,900.00      $184,900.00       $185,000.00       100.05%      100.05%
2  Fol     89       $234,900.00      $219,900.00       $207,000.00        88.12%          94.13%
3  Fol     32       $209,900.00      $209,900.00      $209,900.00      100.00%      100.00%
4  Fol     12       $263,900.00       $263,900.00      $263,000.00          99.66%        99.66%
5  Fol     25       $276,000.00      $276,000.00     $278,000.00       100.72%      100.72%
6  EDH   16       $274,900.00      $274,900.00      $279,000.00       101.49%       101.49%
7  Fol     10       $289,900.00       $289,900.00      $288,200.00         99.41%          99.41%
8  Fol     10       $289,900.00        $289,900.00      $289,000.00        99.69%          99.69%
9  Fol       8        $279,900.00       $279,900.00      $300,000.00      107.18%      107.18%
10 EDH  82      $359,900.00        $330,297.00      $325,000.00          90.30%        98.40%
11 EDH   10     $315,000.00        $315,000.00       $325,300.00        103.27%      103.27%
12 Fol       6      $325,000.00       $325,000.00       $327,000.00        100.62%      100.62%
13 Fol     12      $332,800.00       $332,800.00       $336,220.00          101.03%      101.03%
14 Fol    68       $335,000.00      $349,000.00       $340,000.00         101.49%       97.42%
15 Fol    18       $340,000.00      $359,900.00       $365,000.00         107.35%      101.42%
16 FOl    54      $340,000.00       $340,000.00      $340,000.00        100.00%      100.00%
17 EDH 184     $409,900.00       $399,900.00       $344,900.00            84.14%       86.25%
18 Fol      19      $345,900.00       $345,900.00       $345,000.00           99.74%       99.74%
19 Fol      78      $370,000.00     $370,000.00      $350,000.00           94.59%       94.59%
20 EDH 429      $455,000.00      $432,250.00       $403,000.00          88.57%       93.23%
21 EDH    50       $419,900.00      $419,900.00       $408,850.00          97.37%       97.37%
22 EDH    39       $424,900.00      $409,900.00       $409,900.00         96.47%     100.00%
23 Fol      14        $399,900.00     $399,900.00       $412,000.00        103.03%     103.03%
24 EDH    39        $441,100.00      $441,100.00       $438,000.00         99.30%       99.30%
25 EDH      5         $440,000.00     $440,000.00     $440,000.00     100.00%      100.00%
26 EDH    91         $529,000.00     $469,900.00      $464,000.00         87.71%        98.74%
27 EDH    15         $455,900.00      $455,900.00     $467,000.00      102.43%      102.43%
28 Fol         8         $470,000.00      $470,000.00   $500,000.00      106.38%      106.38%
29 EDH     31        $526,900.00        $526,900.00    $505,000.00        95.84%         95.84%
30 EDH  170       $689,900.00        $564,900.00     $564,900.00        81.88 %      100.00%
31 Fol       27        $489,900.00        $489,900.00     $516,000.00      105.33%      105.33%
32 Fol      16          $599,999.00        $599,777.00     $525,000.00        87.50%       87.53%
33 Fol      24          $549,900.00       $549,900.00     $525,000.00         95.47%       95.47%
34 EDH  179         $594,000.00       $560,000.00   $530,000.00          89.23%       94.64%
35 EDH     56         $609,900.00       $567,200.00   $560,000.00          91.82%       98.73%
36 EDH  114          $646,000.00       $569,900.00   $569,900.00           88.22%     100.00%
37 EDH   76          $604,900.00        $564,900.00   $575,000.00          95.06%     101.79%
38 Fol         1          $599,000.00        $599,000.00   $627,750.00        104.80%     104.80%
39 Fol       14         $699,000.00        $699,000.00   $725,000.00        103.72%      103.72%
AVE.         55                                                                                                                     97.4%            99.3%
       
REO Sold Cost Per Square Foot:     $175.00  90.20%  
Total Sold Cost Per Square Foot:    $194.00    
       
Total Number of REO Homes Sold in October     39     30.0% 
Total Number of Homes Sold in October            130

I’M BACK–Less 40 Pounds!!

Medical issues have taken me away from the Real Estate Business for the past few months.   I had open heart surgery in November and it has taken me longer than I would have liked to recover.   In the process I did manage to drop 40 pounds.  The doctors tell me that I will come back over time.  My response is that I don’t want it back!

In any event, I am starting to get back into the swing of things and will be catching up on my monthly posts about REO properties among other things.

Large REO Listing in Fair Oaks, Large Lot, Nice Pool

Mike West | Avalar RealEstate & Mortgage Network | mike@buyyourvilla.com | 916.337.0658 4821 Kenneth Ave., Fair Oaks, CA Large Bank Owned Home With Nice Pool On Almost 1/2 Acre In Fair Oaks 4BR/3BA Single Family House offered at $522,500 Year Built 1987 Sq Footage 3,046 Bedrooms 4 Bathrooms 3 full, 0 partial Floors 1 Parking 3 Car garage Lot Size 21,344 sqft HOA/Maint $0 per month DESCRIPTION This large Bank Owned Home is a single story ranch style set on almost a half acre parcel in the bucolic area of Fair Oaks. It includes four bedrooms (two of them master suites) and three baths. The entry floor is tile and there are custom wood doors and woodwork throughout. The formal living room has laminate floors, a sculptured ceiling and unique entry to the carpeted, formal dining room. The kitchen has laminate floors and tiled counters. The stove top, double ovens, microwave and stove hood have been removed, providing the opportunity for the buyer to select their own new appliances. The family room has a cathedral ceiling and large stone fireplace with insert. The palatial yard includes a sparkling in-ground pool and a natural pond with RV access on the side. The front yard includes a circular driveway with masonry pillars flanking the entry and exit. The three-car garage provides ample space for three vehicles and storage space for many treasures. The location is convenient for commuters, not far from Highway 50, with shopping and services close by. Sorry, no commissions paid to other brokers. Actual listing broker: RE/Max Gold Folsom see additional photos below PROPERTY FEATURES Central A/C Central heat Fireplace High/Vaulted ceiling Tile floor Family room Living room Dining room Breakfast nook Dishwasher Laundry area – inside Balcony, Deck, or Patio Yard Swimming pool COMMUNITY FEATURES Garage parking ADDITIONAL PHOTOS Seller contact info: Mike West Avalar RealEstate & Mortgage Network mike@buyyourvilla.com 916.337.0658 For sale by agent/broker Equal Opportunity Housing Posted: Oct 24, 2008, 7:31pm PDT

WHO IS THE MASTER AROUND HERE?

Giorgio, our five year old Great Dane, enjoys his comforts.  In our experience Great Danes tend to be on the hedonistic side.  The other day we made our bed with all the good bedding and pollows.  My wife discovered Giorgio, the most comfortable dog in El Dorado Hills, doing his thing.  See the included photos.

 

A weekend On the Monterey Peninsula

My wife and I recently spent a long weekend on the Monterey Peninsula to celibrate our 35th.  We had a great time.  I will try and insert some photos that I took during this trip.

Point Lobos at High Tide

 

Big Sur

HIghway 101

Point Lobos 2

Big Sur 2

A very beautiful part of our State and Country.  We enjoyed ourselves and recommend a visit.

Take Over of Freddie Mac & Fannie Mae–What’s In It For Me?

Treasury Department Takes Over Freddie Mac and Fannie Mae!  What does that mean for me?

                                   

Treasury Secretary Henry Paulson announced the takeover of Freddie Mac and Fannie Mae on Sunday, September 7, 2008.  The two mortgage giants were the primary purchasers of mortgages on the secondary market and the major influencers of loan guidelines and interest rates across the country. 

 

Pressure from foreign and domestic investors helped prompt the government’s move.  The Federal Housing Finance Agency, or FHFA, will have management control of these organizations.  They had been operating under that agencies regulation.   

 

This is a clear indication that the housing crisis in this country has had a major impact on an international scale.  Buyers, sellers and borrowers are not the only ones impacted. 

 

A recent Wall Street Journal article indicated that analysts expect that the average 30-year mortgage rate could come down a quarter to a half of a percentage point in the coming weeks.

 

Pundits tell us to expect a tightening of loan guidelines in the near future.  Qualified borrowers will be able to enjoy a lower cost of funds.  However, the pool of qualified borrowers is likely to be smaller.

 

100% financing is almost a thing of the past and second loans are very difficult to obtain.  However, the market is nothing if not resilient.  Investors will find a way.  The only question is how long it will take them.  

 

This sudden drop in interest rates coupled with the significant drop in housing prices makes this an excellent time to buy.  Those who wait for better market conditions are likely to miss out on the opportunities extant.

 

If you, a friend or family member have been thinking of purchasing a home or other property, now is the time.  Let’s start the search