Recordings of Notice of Defaults Rose 9.5% in January
Recordings of notice of defaults (NOD’s) on trust deed loans in January 2010 rose 9.5% on a daily avearge basis from December 2009, according to Foreclosure Radar.
The increase in the number of NOD’s recorded in January 2010 is up more than 16% from January 2009. However, real estate owned (REO) properties are down more than 33% January over January, indicating banks are taking longer to complete the foreclosure process. REO’s once placed on the market, continue to sell rapidly.
The good news is that brokers with REO properties to sell are seeing them go quickly. The buyers are ready to pounce after the dip of the past two years, especially under a million dollars whree affordability is the best it has been in California in 12 years.
Unfortunately, such listings are scarce despite the number of defaults. Lenders continue to play the delay game to benefit their bottom line as they do not report the market value of their loan portfolio of toxic mortgages until the REO is resold. Unless this changes, look for more of the same kinds of numbers next month.
By John SkinnerNever Pay Advanced Fees For A Loan Modification
With 25% of Californian’s underwater – around 2,500,000 people- all needing loan modifications, nefarious loan modification facilitators have taken advantage of this increased demand by collecting advanced fees from the homeowner and then (for the most part – it does work out rarely) accomplish little to nothing in negotiations for a loan modification with the lender. In fact, the services performed by the facilitator can easily be obtained by the homeowner directly through the lender or non-profit housing counseling agency.
The California Department of Real Estate revoked a record breaking 672 licenses in relation to loan modification scams, up 50% from 2008. Additionally, 105 licensees have surrendered their licenses to the state are facing disciplinary action for accepting advanced fees.
Effective October 11, 2009, California Business and Profession code 10147.6 prohibits advance fees to be paid for any loan modification or loan forebearance service on a one-to-four unit residential loan even if the licensee received a “no objection” letter from the DRE previously granting them authority.
A list of nonprofit housing counseling agencies approved by the United States Department of Housing and Urban Development (HUD) is available at www.hud.gov.
*Source: “DRE Licenses Revoked in 2009 hit a reacord” by Connor P. Wallmark
Sales of Million Dollar Plus Homes 1/3 of What They Were in 2005
*Only 18,261 homes sold for over $1 million dollars in 2009, a mere fraction of the 54,773 which were sold during the speculative boom in 2005.
*Approximately 1,900 homes in California that were sold for over $1 million prior to 2009 were sold in 2009 for six digits.
*Cash is king…Of the homes purchased for over $5 million, 66% were paid for in cash, as were 29% of homes purchased for over $1 million.
High-tier properties are first in a recession to slow down in sales volume, but always the last to enter the foreclosure fray- but they will have to hit at some point especially properties that were financed after 2001.
Real Time Market Data For Santa Monica
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Each week we will be updating you with Altos Research for Santa Monica, Brentwood, Pacific Palisades and Mar Vista. We hope to be adding Manhattan Beach and Culver City in the near future. The Altos research provides an overview of current real estate market conditions for Single Family Homes, trends in pricing and current levels of supply and demand. The data is gathered on Monday of every week and released to us on Wednesday. Please feel free to call our office whenever you would like more detailed information.
Tumbling Down on Corsica Drive
Last year I wrote quite a bit about prices dropping in the Palisades Riviera. Although we have seen some slight stabilization lately, 1136 Corsica Drive shows how far the market for high-end new construction dropped. This 6,800 square foot Mediterranean villa detailed with fine qualities and design, featuring a gourmet kitchen, vaulted ceilings, his and hers baths, and lush landscaping complete with pool, spa and barbeque debuted on the market in January of 2008 for $9,275,000.
After being leased in October 2008 for $35,000 it is now listed for sale at $6,495,000. This is a classic example of what happens when a seller doesn’t understand market reality and tries to catch a “falling knife” as opposed to adjusting to the market quickly. The current price properly reflects the market in that area and it should garner serious interest. Please feel free to call my office at 310-255-3447 if you would like further information or want to schedule a tour.
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