More Properties have Default Notices 19% More

By
Real Estate Agent with Elite Home Sales Team OC BRE# 02066030

In the Orange County Register today they reported that California real estate market was still having difficulties as shown in an increase of properties that have default notices - 19% more.  The number of properties in default in California climbed 19% over the last quarter.

This is the first time we have had an increase quarter over quarter since the beginning of last year.  We have extremely high unemployment and underemployment here in the state which is not helping the overall market. 

It is not changing to the better 83,300 homes went into default from July through September.  We had been seeing a very flat quarter to quarter number of defaults.  The most loans that went into default were by Bank of America with 7,979  properties, then Wells Fargo with 1,980, and Washington Mutual with 1,779.

There are still a large number of individuals that have not paid on their properties for over 2 years that have not been foreclosed upon.  I really do not understand why the banks wait so long to start the process.  Many of these people do not want to do loan modifications or short sales becaues they are living rent free.  Now we have an increase of properties with default notices -19% more.

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Ambassador
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Charlie Ragonesi
AllMountainRealty.com - Big Canoe, GA
Homes - Big Canoe, Jasper, North Georgia Pros

I will tell you why many of these properties are fdic insured and need to be deliquint for 2 years in order for the bank to cash in,. They can get up too 80 percent of value

Oct 31, 2010 09:54 AM #1
Rainmaker
849,042
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

I had not heard that if they wait 2 yrs they are allowed to get 80% back.

Oct 31, 2010 10:01 AM #2
Rainer
127,022
Brian Doubleday
Brian Doubleday - IML RealEstate - Orange County, CA Broker - Ladera Ranch, CA
Ladera Ranch, Foothill Ranch, Lake Forest, Mission Viejo

Thanks for the post, so few people realize how much of this mess is still going on in so. cal, this proves it

Oct 31, 2010 07:37 PM #3
Rainmaker
1,017,196
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

Brian

It is true that some people do not like facts and want to think positive.

Nov 01, 2010 03:27 AM #4
Rainmaker
210,832
Renae Bolton
Marketing 4 Realtors - Garfield Heights, OH
I'm your Professional Real Estate Marketing VA!

That's really a sad state of affairs (no pun intended).  The fact that people will purchase a home, agree to pay the loan on the home, and then choose to do it the easy way by living rent-free is just sad.  I understand unemployment and all that - I get it.  But two years is a very long time to go without paying anything at all on your home.  At what point does it stop being a matter of empathy and becomes a matter of legality?

~Renae

Nov 01, 2010 05:32 AM #5
Rainmaker
849,042
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Brian

It is not a good sign no matter how we cut it.

Nov 01, 2010 07:16 AM #6
Rainmaker
849,042
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Tim

Positive thinking will do a lot but it will not change facts.

Nov 01, 2010 07:17 AM #7
Rainmaker
849,042
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Renae

I do not disagree with you but there are many that if the bank foreclosed upon them they would be on the street.  It is just a fact here with high unemployment or under employment.

Nov 01, 2010 07:18 AM #8
Rainmaker
4,444,686
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

On a positive note, your market place is very desirable, and as this mess clears (and it will), many folks will snap up these homes, and this too shall pass.  Wishing you continued success.  A

Nov 02, 2010 03:31 AM #9
Rainmaker
849,042
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

Ron and Alexandra

It is true this too will pass.

Nov 03, 2010 03:05 AM #10
Rainmaker
4,080,432
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Sounds like Orange County is really struggling.    I agree with Ron & Alexandra, you are is desirable due to the weather...so hopefully will recover soon!

Nov 04, 2010 04:44 AM #11
Rainmaker
849,042
Elite Home Sales Team
Elite Home Sales Team OC - Corona del Mar, CA
A Tenacious and Skilled Real Estate Team

It is hard to say the new laws and the state houses are likely to cause us to go bankrupt.

Nov 04, 2010 06:11 AM #12
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