Here is an interesting article I found while searching the internet this evening.
Defaulted Owners Living Payment Free For…Years (and Years)
June 19, 2011
Millions of homeowners in distress are getting some unexpected breathing room — lots of it in some places.
In New York State, it would take lenders 62 years at their current pace, the longest time frame in the nation, to repossess the 213,000 houses now in severe default or foreclosure, according to calculations by LPS Applied Analytics, a prominent real estate data firm.
Clearing the pipeline in New Jersey, which like New York handles foreclosures through the courts, would take 49 years. In Florida, Massachusetts and Illinois, it would take a decade.
In the 27 states where the courts play no role in foreclosures, the pace is much more brisk — three years in California, two years in Nevada and Colorado — but the dynamic is the same: the foreclosure system is bogged down by the volume of cases, borrowers are fighting to keep their houses and many lenders seem to be in no hurry to add repossessed houses to their books.
“If you were in foreclosure four years ago, you were biting your nails, asking yourself, ‘When is the sheriff going to show up and put me on the street?’ ” said Herb Blecher, an LPS senior vice president. “Now you’re probably not losing any sleep.”
When major banks acknowledged last fall that they had been illegally processing foreclosures by filing false court documents, they said that any pause in repossessions and evictions would be brief. All of the major servicers agreed to institute reforms in their foreclosure procedures. In April, the Office of the Comptroller of the Currency and other regulators gave the banks 60 days to draw up a plan to do so. [read more] Real Estate Insider News
May 2010 there were 980 homes for sale in Stockton, California in comparison to May 2011 where there was an increase to 1098 homes for sale. The number of homes sold in May 2010 was 411 and in May 2011 the number of homes sold decreased to 358. In May 2010 there were 422 pending sales which increased to 584 in May 2011.
The Federal Housing Finance Agency (FHFA) recently released its third Report to Congress, detailing the findings of the agency’s 2010 annual examinations of Fannie Mae, Freddie Mac, the 12 Federal Home Loan Banks (FHLBanks), and the FHLBanks’ Office of Finance.
“Since being placed under conservatorship in 2008, Fannie Mae and Freddie Mac remain critical supervisory concerns,” FHFA Acting Director Edward J. DeMarco wrote to Congress.
“These ratings are a result of continuing credit losses in 2010 from loans originated during 2005 through 2007 as well as forecasted losses from loans originated during that time. As a result of the conservatorships, federal government support and an improved corporate governance structure, the Enterprises accomplished their statutory mission of facilitating stability and liquidity for single-family and multifamily housing finance.”
Other details in the 2010 Report to Congress:
Key challenges facing Fannie Mae and Freddie Mac include, but are not limited to: credit risk, operational risk, modeling risks and retention of qualified leadership and personnel.
In 2010, GSE losses totaled $28 billion. The GSEs completed 950,000 loan modifications and other foreclosure alternative actions in 2010.
All FHLBanks recorded positive annual earnings in 2010, though some recorded losses in individual quarters. Advances (loans to members) at year-end 2010 totaled $479 billion, down from $631 billion at year-end 2009.
The 2010 financial condition and performance of the FHLBanks stabilized but several FHLBanks continued to be negatively affected by their exposure to private-label mortgage-backed securities.
The above was brought to you from our California Association of REALTORS ®
C.A.R. Member Benefit #14: C.A.R. Newsline is a weekly e-newsletter covering vital industry information including economic reports, legislative developments, and new real estate products and services.
Here is my latest foreclosure report from ForeclosureRadar. Please check out their website!
06/14/2011 – Third party investors resold the homes they previously purchased at auction at a faster pace throughout our coverage area. As the most sophisticated and motivated homesellers in the marketplace, these investors provide an important indicator as to the health of the entire housing market. While the statistic is encouraging, it’s too early to tell whether it is a turning point from the otherwise recent downward trend within the housing market. [Read More]
Open House ~ My Office at 2652 East Main Street, Stockton CA 95205
Saturdays 11AM – 2PM and Monday Evenings 5PM – 7PM
You are invited to our Open Office at 2652 East Main Street in Stockton. If you are looking for residential, commercial, or investment properties in this area, don’t miss this opportunity to visit and meet with Dave Thurman, REALTOR®. Also, learn all about a Shaklee membership. Come Join Us! Appointments are not necessary!
Open House ~ My Office at 2652 East Main Street, Stockton CA 95205
Saturdays 11AM – 2PM and Monday Evenings 5PM – 7PM
Join us! You are invited to our Open Office at 2652 East Main Street in Stockton. If you are looking for residential, commercial, or investment properties in this area, don’t miss this opportunity to visit and meet with Dave Thurman, REALTOR®. Also, learn all about a Shaklee membership. Appointments are not necessary!
Thanks to all the helpful comments, after much Internet surfing and after checking on my sources; I have updated my post May 29, 2011 Double DipAlso, I want to give a special thanks to cartoonist Karl Wimer
Wouldn’t it be nice if this post was all about an ice cream cone or my favorite ice cream parlor. I think there must be a dive into the swimming pool called a “double-dip”… or maybe if a person got fired from the same job two times. How about a person getting married and divorced from the same person two times within a relatively short time period, that must be a “double-dip”?
Investopedia explains Double-Dip Recession:
The causes for a double-dip recession vary but often include a slowdown in the demand for goods and services because of layoffs and spending cutbacks from the previous downturn.
A double-dip (or even triple-dip) is a worst-case scenario. Fear that the economy will move back into a deeper and longer recession makes recovery even more difficult.
LOS ANGELES (AP) May 17, 2011 – California home market remains in a funk. Sales, prices fall; foreclosures are less of a factor.
NEW YORK (AP) May 17, 2011 – Forcasts for growth in economy not as rosy. High gas prices, lower GDP seen.
WASHINGTON – May 29, 2011 – The Associated Press By Derek Kravitz – Stung by downturn, home buying no option for many. Percent of those owning homes at 12-year low. The population of U.S. households that owns homes is at its lowest point since 1998.
April 2010 there were 884 homes for sale in Stockton, California in comparison to April 2011 where there was an increase to 1052 homes for sale. The number of homes sold in April 2010 was 457 and in April 2011 the number of homes sold decreased to 387. In April 2010 there were 531 pending sales which increased to 606 in April 2011.
