Bank REO

[JC]

Just thought this was pertinent to this thread…

Notices of default up 24% in county
Analyst says February numbers might be fluke
By Roger Showley, UNION-TRIBUNE STAFF WRITER
Friday, March 19, 2010 at 9:11 p.m.

Homeowners in San Diego County defaulted at their highest monthly rate in more than a year in February, MDA DataQuick reported Friday.

Defaults totaled 2,166, up 24.4 percent from January’s 1,741, the biggest one-month jump since the figure jumped 121.3 percent from November to December 2008.

Meanwhile, there were 973 foreclosures, down from 986 in January in the sixth month-to-month decline in the past year. The number was down 21 percent from year-ago levels.

More notices of default normally signal spreading distress in the housing market. As owners fall three months or more behind in their monthly payments, lenders usually file this first formal action that often leads to foreclosure. The number spiked a year ago, when lenders were catching up on a backlog of defaults delayed through extended noticing requirements and moratoriums.

DataQuick analyst Andrew LePage said the default rise last month might be a fluke.

“You can’t just read too much into a single month,” he said. “There’s been a very irregular (pattern) of notice-of-default filings.”

But LePage said he detected a similar uptick in counties throughout the state.

“The bulk was in the areas hit hardest” by economic and housing distress, he said, and did not reflect problems spreading to higher-priced properties as many analysts have been predicting.

“That’s not the way it shaped up,” LePage said. “It was more of the same.”

In his ZIP code breakdown of defaults in the county, LePage reported high percentage increases from January in several higher-priced neighborhoods. The actual numbers remained relatively low.

For example, Del Mar defaults were up 250 percent, but the increase was only from two to seven defaults; Solana Beach was up 120 percent, from five to 11; La Jolla was up 54.5 percent, from 11 to 17.

Meanwhile, some lower-cost areas continued to exhibit greater distress in absolute numbers. Nestor in the South Bay had 83 default notices, up from 53 in January and the highest of any ZIP code, followed by Spring Valley with 70, up from 44, and Encanto at 58, up from 53. All three had median home prices of $240,000 or less in the past 12 months.

LePage said it is possible that defaults will continue rising, given the high number of delinquencies that have been reported in recent months.

But Dustin Hobbs, spokesman for the California Mortgage Bankers Association, said a new program to speed up short sales — homes sold for less than the outstanding mortgage balance — may forestall many defaults as well as foreclosures.

“No one’s walking around with rose-colored glasses thinking it’s the silver bullet,” Hobbs said. “Certainly, it’ll be useful tool.”

He said the market is still unsettled because of the so-called “shadow inventory” of distressed homes that are delinquent or in default.

“It would be catastrophic if all of a sudden they all went to foreclosure,” Hobbs said. “We would have a huge, downward impact on home values, and no one wants that.”

In another report Friday, HomeGain, a Web site based in Emeryville that lists estimated home valuations, said real estate agents nationally are somewhat more optimistic about the market than a year ago.

Twenty-nine percent of industry professionals responding to a survey said prices are likely to decrease in the next six months, compared with 53 percent expecting a decline a year ago.

California was one of 10 states where more agents think prices will go up than down in the next six months.

The breakdown: 42 percent think prices will be unchanged, 36 percent think they will rise and 22 percent think they will fall.

[sdrealtor]

Before I gave an credence to a year over year REO number I’d want to know what was happening last year. Was there a moratorium pulling numbers down? Was the number higher than average last year? There are so many variables that these aggregate statements are essentially worthless unless you have your hands firmly on the pulse of a specific market. Well they arent worthless… they do sell newspapers.

[sdrealtor]

Before I gave an credence to a year over year REO number I’d want to know what was happening last year. Was there a moratorium pulling numbers down? Was the number higher than average last year? There are so many variables that these aggregate statements are essentially worthless unless you have your hands firmly on the pulse of a specific market. Well they arent worthless… they do sell newspapers.

[sdrealtor]

Before I gave an credence to a year over year REO number I’d want to know what was happening last year. Was there a moratorium pulling numbers down? Was the number higher than average last year? There are so many variables that these aggregate statements are essentially worthless unless you have your hands firmly on the pulse of a specific market. Well they arent worthless… they do sell newspapers.

[sdrealtor]

Before I gave an credence to a year over year REO number I’d want to know what was happening last year. Was there a moratorium pulling numbers down? Was the number higher than average last year? There are so many variables that these aggregate statements are essentially worthless unless you have your hands firmly on the pulse of a specific market. Well they arent worthless… they do sell newspapers.

[sdrealtor]

Before I gave an credence to a year over year REO number I’d want to know what was happening last year. Was there a moratorium pulling numbers down? Was the number higher than average last year? There are so many variables that these aggregate statements are essentially worthless unless you have your hands firmly on the pulse of a specific market. Well they arent worthless… they do sell newspapers.

[garysears]

Here is my REO saga.

I just started escrow. First time buyer, used a buyer’s agent. I think a year ago was the absolute best time to low ball on the REO price. Had I been making offers last year I would have been offering 10% under list at a minimum.

Maybe I got frustrated and impatient. I have been looking since 2004, waiting my time. I’m a little bit afraid I overpaid because I can see some possible downside in the future.

All of the offers I made were on REOs or short sales. I can say that in general today the list price is the lowest price the bank will entertain. Lower prices are rejected. If no full price offers are made the price is reduced by a little.

I think there is a shortage of 20% down buyers out there. Or, if they have the money no one wants to put it down. I am in that group. Unfortunately, the bank said no to FHA and VA. It is a multi-family and no one is lending on them with less than 20% down.

I first made a full price conventional offer at list price (20% down). The bank countered immediately with a change to inspection days and escrow time. The sudden response scared me because I had never heard anything from any of the other offers I made. Total silence. I didn’t like the reduced time so I countered for a discount and FHA. It was outright declined with no counter. I offered full price VA. The bank decided they didn’t want to do VA. I offered full price FHA. The bank decided against FHA, though originally they were accepting FHA offers.

Unbelievably to me, mine was the only offer after over 3.5 weeks on the market. Make that my 4 offers were the only ones. Immediately after they denied my full price FHA offer the bank reduced 25K. I made a full price 20% down offer and it was accepted. I can’t believe the bank didn’t want to sell to me for 25K more, but that actually just happened.

I am puzzled why I’m the only offer but 275K for over half an acre with 2 units (small 3/1, plus detached granny flat, plus possible extra 1 bed/ 1 ba apartment above garage set up to be a separate 3rd unit) seems like a bargain in the current market. Just proves that the government money is the entire market. Part of me thinks I should have offered 260K, but after a month of playing games, and still really wanting the house I decided to just pay full reduced price. I will pay for all repairs except termite.

Weird though. I am still puzzled. Seemed like a more than fair deal and no other takers but me for a month. Makes me feel like I must be a sucker. After all these years of analyzing, thinking about real estate, and actively looking…did I make a bad decision?

The way I justify it is that I can easily see 2400 a month as a rental. With my 20% down, PITI is around 1500. Throw in a boatload of maintenance and even 20% rental reduction and I believe I still cash flow. Property inspection yesterday had no deal breakers so I’m going to proceed.

[garysears]

Here is my REO saga.

I just started escrow. First time buyer, used a buyer’s agent. I think a year ago was the absolute best time to low ball on the REO price. Had I been making offers last year I would have been offering 10% under list at a minimum.

Maybe I got frustrated and impatient. I have been looking since 2004, waiting my time. I’m a little bit afraid I overpaid because I can see some possible downside in the future.

All of the offers I made were on REOs or short sales. I can say that in general today the list price is the lowest price the bank will entertain. Lower prices are rejected. If no full price offers are made the price is reduced by a little.

I think there is a shortage of 20% down buyers out there. Or, if they have the money no one wants to put it down. I am in that group. Unfortunately, the bank said no to FHA and VA. It is a multi-family and no one is lending on them with less than 20% down.

I first made a full price conventional offer at list price (20% down). The bank countered immediately with a change to inspection days and escrow time. The sudden response scared me because I had never heard anything from any of the other offers I made. Total silence. I didn’t like the reduced time so I countered for a discount and FHA. It was outright declined with no counter. I offered full price VA. The bank decided they didn’t want to do VA. I offered full price FHA. The bank decided against FHA, though originally they were accepting FHA offers.

Unbelievably to me, mine was the only offer after over 3.5 weeks on the market. Make that my 4 offers were the only ones. Immediately after they denied my full price FHA offer the bank reduced 25K. I made a full price 20% down offer and it was accepted. I can’t believe the bank didn’t want to sell to me for 25K more, but that actually just happened.

I am puzzled why I’m the only offer but 275K for over half an acre with 2 units (small 3/1, plus detached granny flat, plus possible extra 1 bed/ 1 ba apartment above garage set up to be a separate 3rd unit) seems like a bargain in the current market. Just proves that the government money is the entire market. Part of me thinks I should have offered 260K, but after a month of playing games, and still really wanting the house I decided to just pay full reduced price. I will pay for all repairs except termite.

Weird though. I am still puzzled. Seemed like a more than fair deal and no other takers but me for a month. Makes me feel like I must be a sucker. After all these years of analyzing, thinking about real estate, and actively looking…did I make a bad decision?

The way I justify it is that I can easily see 2400 a month as a rental. With my 20% down, PITI is around 1500. Throw in a boatload of maintenance and even 20% rental reduction and I believe I still cash flow. Property inspection yesterday had no deal breakers so I’m going to proceed.

[garysears]

Here is my REO saga.

I just started escrow. First time buyer, used a buyer’s agent. I think a year ago was the absolute best time to low ball on the REO price. Had I been making offers last year I would have been offering 10% under list at a minimum.

Maybe I got frustrated and impatient. I have been looking since 2004, waiting my time. I’m a little bit afraid I overpaid because I can see some possible downside in the future.

All of the offers I made were on REOs or short sales. I can say that in general today the list price is the lowest price the bank will entertain. Lower prices are rejected. If no full price offers are made the price is reduced by a little.

I think there is a shortage of 20% down buyers out there. Or, if they have the money no one wants to put it down. I am in that group. Unfortunately, the bank said no to FHA and VA. It is a multi-family and no one is lending on them with less than 20% down.

I first made a full price conventional offer at list price (20% down). The bank countered immediately with a change to inspection days and escrow time. The sudden response scared me because I had never heard anything from any of the other offers I made. Total silence. I didn’t like the reduced time so I countered for a discount and FHA. It was outright declined with no counter. I offered full price VA. The bank decided they didn’t want to do VA. I offered full price FHA. The bank decided against FHA, though originally they were accepting FHA offers.

Unbelievably to me, mine was the only offer after over 3.5 weeks on the market. Make that my 4 offers were the only ones. Immediately after they denied my full price FHA offer the bank reduced 25K. I made a full price 20% down offer and it was accepted. I can’t believe the bank didn’t want to sell to me for 25K more, but that actually just happened.

I am puzzled why I’m the only offer but 275K for over half an acre with 2 units (small 3/1, plus detached granny flat, plus possible extra 1 bed/ 1 ba apartment above garage set up to be a separate 3rd unit) seems like a bargain in the current market. Just proves that the government money is the entire market. Part of me thinks I should have offered 260K, but after a month of playing games, and still really wanting the house I decided to just pay full reduced price. I will pay for all repairs except termite.

Weird though. I am still puzzled. Seemed like a more than fair deal and no other takers but me for a month. Makes me feel like I must be a sucker. After all these years of analyzing, thinking about real estate, and actively looking…did I make a bad decision?

The way I justify it is that I can easily see 2400 a month as a rental. With my 20% down, PITI is around 1500. Throw in a boatload of maintenance and even 20% rental reduction and I believe I still cash flow. Property inspection yesterday had no deal breakers so I’m going to proceed.

[garysears]

Here is my REO saga.

I just started escrow. First time buyer, used a buyer’s agent. I think a year ago was the absolute best time to low ball on the REO price. Had I been making offers last year I would have been offering 10% under list at a minimum.

Maybe I got frustrated and impatient. I have been looking since 2004, waiting my time. I’m a little bit afraid I overpaid because I can see some possible downside in the future.

All of the offers I made were on REOs or short sales. I can say that in general today the list price is the lowest price the bank will entertain. Lower prices are rejected. If no full price offers are made the price is reduced by a little.

I think there is a shortage of 20% down buyers out there. Or, if they have the money no one wants to put it down. I am in that group. Unfortunately, the bank said no to FHA and VA. It is a multi-family and no one is lending on them with less than 20% down.

I first made a full price conventional offer at list price (20% down). The bank countered immediately with a change to inspection days and escrow time. The sudden response scared me because I had never heard anything from any of the other offers I made. Total silence. I didn’t like the reduced time so I countered for a discount and FHA. It was outright declined with no counter. I offered full price VA. The bank decided they didn’t want to do VA. I offered full price FHA. The bank decided against FHA, though originally they were accepting FHA offers.

Unbelievably to me, mine was the only offer after over 3.5 weeks on the market. Make that my 4 offers were the only ones. Immediately after they denied my full price FHA offer the bank reduced 25K. I made a full price 20% down offer and it was accepted. I can’t believe the bank didn’t want to sell to me for 25K more, but that actually just happened.

I am puzzled why I’m the only offer but 275K for over half an acre with 2 units (small 3/1, plus detached granny flat, plus possible extra 1 bed/ 1 ba apartment above garage set up to be a separate 3rd unit) seems like a bargain in the current market. Just proves that the government money is the entire market. Part of me thinks I should have offered 260K, but after a month of playing games, and still really wanting the house I decided to just pay full reduced price. I will pay for all repairs except termite.

Weird though. I am still puzzled. Seemed like a more than fair deal and no other takers but me for a month. Makes me feel like I must be a sucker. After all these years of analyzing, thinking about real estate, and actively looking…did I make a bad decision?

The way I justify it is that I can easily see 2400 a month as a rental. With my 20% down, PITI is around 1500. Throw in a boatload of maintenance and even 20% rental reduction and I believe I still cash flow. Property inspection yesterday had no deal breakers so I’m going to proceed.

[garysears]

Here is my REO saga.

I just started escrow. First time buyer, used a buyer’s agent. I think a year ago was the absolute best time to low ball on the REO price. Had I been making offers last year I would have been offering 10% under list at a minimum.

Maybe I got frustrated and impatient. I have been looking since 2004, waiting my time. I’m a little bit afraid I overpaid because I can see some possible downside in the future.

All of the offers I made were on REOs or short sales. I can say that in general today the list price is the lowest price the bank will entertain. Lower prices are rejected. If no full price offers are made the price is reduced by a little.

I think there is a shortage of 20% down buyers out there. Or, if they have the money no one wants to put it down. I am in that group. Unfortunately, the bank said no to FHA and VA. It is a multi-family and no one is lending on them with less than 20% down.

I first made a full price conventional offer at list price (20% down). The bank countered immediately with a change to inspection days and escrow time. The sudden response scared me because I had never heard anything from any of the other offers I made. Total silence. I didn’t like the reduced time so I countered for a discount and FHA. It was outright declined with no counter. I offered full price VA. The bank decided they didn’t want to do VA. I offered full price FHA. The bank decided against FHA, though originally they were accepting FHA offers.

Unbelievably to me, mine was the only offer after over 3.5 weeks on the market. Make that my 4 offers were the only ones. Immediately after they denied my full price FHA offer the bank reduced 25K. I made a full price 20% down offer and it was accepted. I can’t believe the bank didn’t want to sell to me for 25K more, but that actually just happened.

I am puzzled why I’m the only offer but 275K for over half an acre with 2 units (small 3/1, plus detached granny flat, plus possible extra 1 bed/ 1 ba apartment above garage set up to be a separate 3rd unit) seems like a bargain in the current market. Just proves that the government money is the entire market. Part of me thinks I should have offered 260K, but after a month of playing games, and still really wanting the house I decided to just pay full reduced price. I will pay for all repairs except termite.

Weird though. I am still puzzled. Seemed like a more than fair deal and no other takers but me for a month. Makes me feel like I must be a sucker. After all these years of analyzing, thinking about real estate, and actively looking…did I make a bad decision?

The way I justify it is that I can easily see 2400 a month as a rental. With my 20% down, PITI is around 1500. Throw in a boatload of maintenance and even 20% rental reduction and I believe I still cash flow. Property inspection yesterday had no deal breakers so I’m going to proceed.

[UCGal]

congrats on your purchase, garysears.

[UCGal]

congrats on your purchase, garysears.

[UCGal]

congrats on your purchase, garysears.

[UCGal]

congrats on your purchase, garysears.

[Author]

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