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San Francisco Chronicle Headline: Foreclosures Hit A 20-Year High!

By
Real Estate Agent with Alain Pinel BRE 01367196

We know the foreclosure activity picked up. We also know that we have brisk activity when writing offers, many times, at a multiple-offer situation.

So it wasn't a shock to see this headline that talked about repossessions in the Bay area soaring. Read the story

  • In the Bay Area, mortgage companies recorded 18,516 notices of default, up more than 140 percent from a year ago. Foreclosures rose nearly 315 percent to 9,206.
  • Notices of default, the first step in foreclosure proceedings, rose nearly 125 percent from a year ago during the second quarter, and trustee deeds recorded, which reflect the actual homes repossessed, soared more than 260 percent, according to research firm DataQuick Information Systems.
  • There were 63,061 foreclosures statewide during the second three months of the year compared to 17,458 during the same period a year ago.
  • Foreclosures will continue to climb until at least the third quarter of 2009 due to: rising unemployment rates that will apply pressure even to homeowners who secured prime loans, and the expectation that many borrowers soon will face higher payments on option adjustable-rate mortgages.
  • Lenders are overwhelmed with paperwork and taking longer to issue default notices. Or lenders could be more willing to allow short sales - unloading distressed properties for less than the amount owed on the loan - instead of initiating the foreclosure process.
  • Among homeowners who fall into default, an estimated 22 percent now escape foreclosure by catching up on their payments, refinancing or selling, DataQuick said. That's down from 52 percent a year ago

They included a link to see what's happening by zip code

Comments(6)

Raylene Lewis
Century 21 Beal, Inc. - College Station, TX

Are we surprised?

Jul 23, 2008 08:17 AM
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Nope, not surprised. But wanted to see the numbers. Clicked on the zip code for my little island city. Somewhat relieved we are not in the same category as other hard-hit places.

If lenders make the time to read such articles, maybe they will work a little faster and get their team to look at loan modification scenarios instead of short sales and foreclosures to try to help homeowners keep their homes.

 

Jul 23, 2008 08:20 AM
Anonymous
Calvin

 

 

www.LenderModification.com

Loan Modifications are the best
thing for most people in foreclosure.  www.LenderModification.com is one
of the best companys.  My friend workds there and he says that he is  helping alot of people.

Aug 06, 2008 12:54 PM
#3
Anonymous
Carlos H.

Has anyone here received a declined short sale file with "Due to Investor's guidelines" as the reason.

I have submitted a complete Short Sale Package to ASC since last June and I just happened to inquire today about the status on the file only to find out it had been declined 2 days ago. I asked why wasn't I as the listing agent advised of their decision, then I am told that negotiators are not allowed to make outbound calls!! 

First, they gave me the runaround about the faxed short sale package for about a month telling me they were not able to see any faxes in their system after faxing it 4 times and singing the same song "it may take up to 72 hours for the fax to be scanned into their system (is it 72 hours or 72 days).

No communication whatsoever from the assigned negotiator, it seems they're just concerned about their workload and how to empty their portfolios in order to meet their individual score card expectations.

I would like to take this upstairs to their SVP if possible, anyone knows how to do this I would really appreciate it.

Aug 14, 2008 03:47 PM
#4
Pacita Dimacali
Alain Pinel - Oakland, CA
Alameda/Contra Costa Counties CA

Carlos

I had a short sale listing. The bank is Downey Savings. I attempted to contact them to let them know I would be submitting the property as a potential short sale. They didn't even want to look at the file until I had an offer.

So I worked so hard and as fast as I can to get the package together, readied the property, marketed the heck out of it, got an offer after two weeks. Then put everything in a nicely tabbed package, with more info than they need, copies of all my marketing materials, etc.

Then I get a call that Downey Savings won't approve ANY short sale. Goodness...they could have todl me that the first time I contacted them! Why put me through this exercise only to tell me it was all for naught.

Short sales are a real pain, both for the listing and selling agents. Then companies like Downey Savings, a bunch of pencil pushers, don't work with us, and rather, they let the properties foreclose. Sad part is, the REOs are then given to REO agents who don't have any time invested in these listing.

I feel your pain....

Pacita

Aug 14, 2008 04:50 PM
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

yes they look so nice but Foreclosures are such tough on to stomach.

Oct 31, 2011 07:05 AM