[quote=SD Realtor]Those are good questions Scarlett. I don’t really have many answers for you. Agreed that we have seen strong price recovery, especially over the past 6 months. Yes there are still alot of people underwater but nowhere near as many as there were in 2009. Furthermore that number is being whittled down daily. No the banks are not holding onto foreclosures as well. The supposed tsunami believers who I always said were grasping at straws are totally empty handed. I didn’t quite get your last 3 lines. The low inventory is bad, as bad as it has ever been. Even in the bubble days we didn’t have inventory like this. It becomes challenging for everyone. It makes the decision making process border on irrational for some. Buying becomes fed by fear rather then logic. Appraisals become much harder becaue prices gap up rather then appreciate normally. It is just a situation that most buyers should not participate in unless they are adequately prepared.[/quote]
I don’t think the banks that made loans back in 2005 and 2006 have much to foreclose on anymore. The only private loan I can think of during the bubble years that might not have defaulted yet is the 10 year Option ARM that Wachovia was offering (now it’s Wells). Most of the private sector bubble year loans were 5-7 option ARMs.
Most of the sales in the past 3-4 years are all cash investors (30-40%), FHA/VA (30-40)%, and then traditional 20% down loans (maybe 20ish%). Most of the recent defaults are FHA loans so if your going to see new foreclosure inventory that’s where it’s going to come from. I found this link which indicates 7K FHA loans in San Diego County that have been foreclosed already or are in some stage of foreclosure. Looks like around 300 so far in April.
