According to the California Foreclosure Report for June 2009, California's foreclosure sales increased 24.7%. During June in Orange County, Notices of Default were at 2,486, a 16.2% increase from May where Notices of Default were at 2,139. Foreclosure sales also increased in June with sales at 910, a 19.4% increase from May where sales were only at 762. Overall, we see that June is having a more productive month than May with foreclosure sales.
In May the Notices of Trustee Sale was at 1,818, but dropped by 11.9% in June leaving the Notices of Trustee Sale at 1,602. That is a 216 difference between these two months. This drop is believed to be a response to the California Foreclosure Prevention Act, which had little to no impact in the long run.
Out of the 54 Countys, Orange County ranks 47 in the foreclosure sales per population. The highest ranked Southern California county is Riverside ranked in at 5.
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Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
The market share of refinancings has dropped to its lowest point since November 2008, according to the Mortgage Bankers Association. The group's Weekly Applications Survey Market Composite Index, an overall measure of mortgage applications, fell over 7% on a seasonally adjusted basis.
Refis only made up 59.4% of total applications, down from 62.4% the previous week, as mortgage rates continued their sharp rise. As a result of the drop in refis, for the week ended June 5, the MCI was 611.0, compared with 658.7 one week earlier. However, rising rates have not had a negative impact on purchase activity, according to the survey. While the refinance index decreased 11.8% to 2605.7 from 2953.6 the previous week, the seasonally adjusted purchase index increased 1.1% to 270.7 from 267.7 one week earlier.
On an unadjusted basis, the index increased 15.7% compared with the previous week and increased 7.6% compared with the same week one year earlier. Adjustable-rate mortgages accounted for 3.4% of applications, up from 3% for the previous week, the MBA said. There was an increase in the average contract interest rate for 30-year fixed-rate mortgages to 5.57% from 5.25%, with points (including the origination fee) increasing to 1.09 from 1.02 for loans with 80% loan-to-value ratios, according to the association.
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Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
Newfound signs of stability in the housing market could still be threatened by rising foreclosures and slow efforts to stop them, according to two reports released Tuesday.
The Standard & Poor’s/Case-Shiller index of 20 major metro areas showed the smallest monthly decline since June 2008. The index tumbled by 18 percent in April from the year before, but for the third month in a row it was not a record decline. Yearly losses in 13 metro areas improved compared with March.
For the Los Angeles/Orange County area, the April decline was 21 percent from the year before. In March, the decline from the year before was 22 percent.
But rising foreclosures fueled by layoffs could derail a meaningful turnaround. The number of homeowners at least two months behind or in foreclosure jumped in the first quarter from the previous quarter, a Treasury Department report said Tuesday.Defaults from borrowers with good credit contributed to much of the increase in seriously delinquent loans, echoing data last month from the Mortgage Bankers Association. As the recession claims more jobs, borrowers in good standing are more likely to miss their mortgage payments.
Efforts to modify home loans have been slow and easily outpaced by the number of new delinquencies. In the first quarter, loan companies modified 185,156 mortgages, up 55 percent from the previous quarter. But the number of foreclosures in proc- ess increased to 844,389, up 22 percent.
Nearly 1 in 4 borrowers who received a mortgage payment reduction fell behind again within six months, the report found. Four months ago, the Obama administration detailed its “Making Home Affordable” initiative. But progress has been slow.
To put pressure on those lenders, the community group ACORN held 15 protests around the country Tuesday to call for the companies to sign onto the initiative.
Stabilizing home prices is key to helping stem the foreclosure crisis. “Prices are still dropping. They’re just no longer in free fall,” Newport said.
Hardest hit remain Phoenix and Las Vegas, where home prices have lost more than half their value since their peaks.
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Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
In the market for a home? Or perhaps you're just seeing multiple homes now and haven't yet honed in on the one that might be your future home. Here are some things to be looking out for, before you get your heart set on a home that may not be as fit as it appears.
Realtor Hillary Caston gives some inspection tips to keep in mind while viewing a home, before you're at the point where you're in escrow and hire someone to do the official inspection.
That way, if there's something major that bothers you, you aren't emotionally (or financially) attached to the property yet.
Caston says:
Use your senses, do you hear traffic that will bother you? Do you hear dogs barking, can you hear your neighbor showering?
Smell the place, do you smell mold? If you do, there might be water leakage somewhere in the house.
Look at how doors close and line up - if they don't close or line up properly, there could be an issue with the foundation.
Is there a slant in the flooring? If you were to drop a ball, would it roll in one direction?
Are there ficus trees around the house? If they're healthy, the roots could gravitate toward the sewer system and wrap around the main sewage line.
Do the current owners have sprinklers on in the yard? If so, are the sprinklers spraying water onto the house? This is an easy fix, but if the homeowners have been doing this for years the repair could be costly.
Is the roof noticibly tattered in areas?
Do you see any cracks on the interior and exterior that are more than a 1/2 inch wide?
Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.
Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
The Federal Reserve today said it will continue to buy up to $1.25 trillion in mortgage securities by the end of this year and that it is maintaining its target for a benchmark interest rate at between zero and 0.25 percent.
Some market watchers have hoped the Fed would buy more securities than previously announced to push down mortgage rates, which are above 5%.
But the Fed also has to face concerns a $1 trillion expansion of its balance sheet over the past year to $2.07 trillion will fuel inflation, drive up interest rates, and hamper any potential economic recovery. The Fed said:
The Committee will continue to evaluate the timing and overall amounts of its purchases of securities in light of the evolving economic outlook and conditions in financial markets. The Federal Reserve is monitoring the size and composition of its balance sheet and will make adjustments to its credit and liquidity programs as warranted.
Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.
Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
The California Association of Realtors issued news from HUD today stating that home buyers will now be able to use their federal tax credit toward the down payment of their home.
For more information visit the link I've posted below.
Effective immediately, an REO lender or buyer whoacquires title through a foreclosure sale must give at least a 90-day notice to terminate a bona fide tenant as defined. A 90-day notice to terminate is sufficient for a month-to-month tenant or if a new owner will occupy the property as a primary residence at the end of the 90 days. Otherwise, a tenant with a one year or other fixed-term lease with a remaining lease term exceeding 90 days can stay in the premises until the remaining lease term ends. This new 90-day notice requirement applies to foreclosures of a federally-related mortgage loan or residential real property, except for properties under rent control, rent-subsidized programs (such as Section 8), or other state laws that provide additional protections for tenants. This law expires on December 31, 2012.
Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.
Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
If your real estate license expires this month, renew now or it’ll cost you about $250 more to renew it in July.
Effective July 1, fees for real estate licenses, license renewals and license exams are being increased to the maximum allowed by law. Hence, fees are going to double for salespersons and go up at least 80% for brokers. (See chart)
The reason? The real estate downturn is taking a toll on the California Department of Real Estate, too.
DRE, as the department is called, gets all its money for its 344-person department from license fees, license exam fees and subdivision fees (which are going up, too). But all those things are down because fewer people are taking the license test or getting licenses. And development fees? Well, homebuilding has been all but mothballed.
All these things have taken a $13.7 million bite out of the department’s $44 million budget.
For example, license exams have dropped from around 22,000 in March 2005 to just under 2,900 this past March. And the number of licensees dropped in March for a 14th straight month.
To make matters worse, the state Legislature and the Govenator have borrowed about $10.9 million from DRE reserves. If the state doesn’t repay that loan, and if the fees don’t go up, DRE projects its reserves will dry up and it’ll run out of money next year. In just over four years, DRE would be almost $88 million in the hole.
Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.
Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
The pending home sales index, rose 6.7% to 90.3 in April from 84.6 in March, the largest increase in more than seven years and the third consecutive monthly increase, according to the National Association of Realtors. It was far better than an expected 0.5% increase, and is 3.2% higher than a year prior.
Pending sales, which indicate that a contract has been signed but the transaction hasn't been closed, got a boost from housing affordability conditions, low mortgage rates, and now also the $8,000 first-time buyer tax credit are beginning to impact the market, said Lawrence Yun, NAR chief economist in a release.
"[Pending home sales] were rather strong -- a lot stronger than anticipated -- and it's consistent with most of the economic data that things are improving," says Peter Cardillo, chief market economist for Avalon Partners. "In this particular case, it's on the plus side, which is good."
It certainly looks good, agreed Brian Bethune, chief U.S. financial economist at IHS Global Insight, "but the actual existing-home sales haven't really done much, so that leads me to believe that perhaps people just aren't getting approved for mortgages or there are more delays going through the process."
Last week, the NAR reported that existing-home sales increased modestly in April to 4.68 million from a downwardly revised 4.55 million in March, roughly in line with expectations. All in all, existing-home sales, including single-family, townhomes, condominiums and co-ops, increased 2.9%, while single-family home sales rose 2.5%.
But nonetheless, pending home sales could continue to increase sharply. "Since first-time buyers must finalize their purchase by Nov. 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers," said NAR's Yun in the release on Tuesday.
"There's a lot of inventory, and no doubt that lending practices have tightened, and unless you have stellar credit you won't get approved for a mortgage," says Avalon Partner's Cardillo. "But there are a lot of people who are taking advantage; they do have good credit and are out there buying, and of course the credits that the government has given are helping."
Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.
Keeping you informed about the Orange County real estate market, economy and life in the OC is what I'm committed to doing.
One of the things I look forward to most during summertime are all the great summer Blockbuster releases. In the link below I've complied a list of this summers new and upcoming big blockbusters. Have a great movie season and enjoy!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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