Higher end foreclosures

[dopthemop]

Quick look at recent data suggests foreclosure activity may be intensifying in expensive zips like RSF, Carmel Valley, Solana Beach, Del Mar etc. Anyone have insight on how this is playing out? Fair to project significant price weakness in the $1mm-$5mm segment next spring? Or will those markets remain resilient?

[UCGal]

CR posted a link to a North County times article about how the banks acted differently based on the size of the loan.

http://www.nctimes.com/blogsnew/business/realside/article_839479c6-9c90-50cf-8961-5c3a8aad985c.html

It may be that the leniency towards the higher dollar mortgages may finally be catching up.

[CDMA ENG]

[quote=UCGal]CR posted a link to a North County times article about how the banks acted differently based on the size of the loan.

http://www.nctimes.com/blogsnew/business/realside/article_839479c6-9c90-50cf-8961-5c3a8aad985c.html

It may be that the leniency towards the higher dollar mortgages may finally be catching up.[/quote]

Yeah!!… I still cant afford them…

No Google stock in this kid’s protofolio!

CE

[Jazzman]

Very mixed stories.

Del Mar had a surge in NODs in July that fell off in August. But notice the number of cancellations. There does seem to be an inverse relationship between NODs and cancellations.
http://www.foreclosureradar.com/california/san-diego-county/del-mar-foreclosures/listings

Encinitas had a four month run on NODs to Aug 2011, but cancellations remain consistent. Notice however, how pre-foreclosure inventory sky-rockets in June.
http://www.foreclosureradar.com/california/san-diego-county/encinitas-foreclosures/listings

Rancho Santa Fe NODs increase 100% from June 2011 and we see that same inverse relationship with cancellations, yet pre-foreclosure inventory remains static, which you’d expect I guess.
http://www.foreclosureradar.com/california/san-diego-county/rancho-santa-fe-foreclosures/listings

Temecula shares more in common with Encinitas than Del Mar.
http://www.foreclosureradar.com/california/riverside-county/temecula-foreclosures/listings

I don’t know how reliable the data to be, nor whether other explanations can be given for them??? One common denominator is the sharp increase in NODs

[bearishgurl]

I did a cursory check around south county zips (using parcel maps) over the wknd and noticed MANY NOD’s filed between May to Sept 2010 where nothing was filed since then. Was this the era of moratorium? I didn’t think CA was involved in that because we are a non-judicial state.

Perhaps lenders were working with borrowers on modifications. If these lenders now choose to foreclose after all these months, they will no doubt file and hang a new NOD showing the correct arrears and fees.

I can’t imagine all of these “mods” were successful. I truly believe some non-paying homeowners are “strategically” defaulting in attempt to “cram down” their lenders into short-selling. I even looked up people I knew to currently be employed and driving expensive *newer* European cars and found NOD’s filed against two of them during this time frame. Still, nothing done and still living in their underwater homes (and perhaps paying a “modified” payment).

In my experience, I have only seen two actual public filings of “Modify Trust Deed” on ARCC. Apparently, they aren’t filed until the modification is made permanent (and then maybe the law doesn’t require lenders to file them – dont’ know).

I’d personally like to know if people I know to have ATM’d their properties repeatedly are successfully obtaining principle reductions. I won’t have time for another month, but if I find this to be happening, I’m going to yank a few chains (letters to Congress, etc).

The random maps I checked on were comprised of SFR’s in the $300K to $500K range in both newer and older areas, not “high end” properties.

[Author]

Posts