All home that receive a Notice of Default do not go into Foreclosure. For example, in September 2010 out of 212 homes in Foreclosure, 10% (down from 16% in August) were sold to third-paties at Auction (Cash Investors).Most foreclosure investors flip the properties they purchase after taking care of title, occupancy and repairs. According to Foreclosure Radar, on a State-wide basis, this process is taking 44.5 percent longer than it did a year ago, up from 95 days to 137. In September 39.6% of the homes in foreclosure were returned to the bank and to become Bank Owned Homes and reenter the resale home market. Back to the bank – or REO homes – have been increasing in number for three months. Cancellations, 50 percent of the homes, comprised the largest single segment of foreclosure outcomes. The majority of “cancellations” are home sold in the Short Sale process, the balance were either saved by loan modifications or were misfiled and canceled. Notice of Defaults and Sales are taking place in all price ranges -with the majority now clustered between $300,000 and $400,000. The second graph, indicating loan balance, clearly show the imbalance of upside down mortgages. Here the majority of homes are clustered in the $300,000 to $500,000 range. How Long Can I Stay in my Home? Legally, the foreclosure process from Notice of Default to Trustee Sale can be completed in 111-days. But then we hear about people staying in their homes for years. What is the truth? I subscribe to ForeclosureRadar.Com and tract the Temecula Market constantly. Here is the trends we have experienced over the last year. In September 2010, the average home in foreclosure was sold or returned to the Bank 286-days after the Notice of Default was filed – an increase of 27-days from the August 2010 time frame and and increase of almost three months from the time frame experience in August 2009. Foreclosure time frames reached a high in January 2010, largely under the impact of new programs to help homeowners stay in their homes. On average you can expect some 10-months in the foreclosure process in Temecula. The message here is that you should not expect to stay in your home for years, you do need to make a decision if you want to avoid a foreclosure. The graph also answers why banks are increasingly favoring Short Sales – it is taking over six months to sell a REO (bank owned home). Investors need to do their math as well, it is taking investors (time to resell 3rd) almost four months to sell their investment homes. Take the first step and educate yourself -TemeculasNeighborhoodExpert.Com provides you with the information you need to make an informed decision. I am a Certified Distressed Property Expert (CDPE) with the education and resources to both provide you with the information you need and manage the Short Sale process. Call me if I can be of help – Robert Deane (951) 223-1772 or by e-mail at Robert@TemeculasNeighborhoodExpert.ComKnowing what is taking place in the Temecula Market will help you make informed choices. If you are interested in Foreclosure Prevention, this is knowledge that will serve you well.
Temecula Market trends in Foreclosures
The number of home receiving Notices of Default here in Temecula (the first step in the foreclosure process which arrives once the homeowner is 90-days behind in mortgage payments) has ranged between 136 and 240 per month. NODs have been increasing since a low point in July, September filings are up by 37% from July. Trustee sales are following this trend with a lag – Trustee sales (when the home is sold to a third party investor or returned to the bank) lag NODs by some six months. Since July, however, Trustee sales have been declining; down in September filings by 31% from July.
If you are behind on your mortgage or have already received a notice of default, you are not alone. What you do need to do is know your options. You will find that there are far better solutions than doing nothing and allowing your home go into default. Short Sales are proving to be a far better solution but your time could be running out.
Rainer
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EXCLUSIVE BUYER'S BROKER - RELOCATION CONSULTANT
Robert Owen Deane - Exclusive Buyer's Broker, and an advocate for homebuyer's in the process of finding and buying a home. Exclusive Buyer's Brokers are the purist form of a homebuyer's representation; I never take a listing, I never work for a seller. My loyalty is 100% to homebuyer's.
I am an Accredited Buyer's Representative (ABR) and member of REBAC; the world’s largest organization of real estate professionals focusing on BUYER representation. Many Exclusive Buyer's Agents are also members of NAEBA.
This blog is The Home Buyer's Advocate, it provides homebuyers with information about the home buying process, market trends and neighborhood information in the Cities of Newport Beach, Irvine and Costa Mesa in Orange County, California.
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