Home Foreclosure Market

[Hallett19]

If you were watching ABC news in Los Angeles this morning around 645 the news article started off, "more homes went into foreclosure last month than any other month since records have been kept", ouch. May of 2007, 176,137 homes went into foreclosure, up 90% from may 2006! Colorado, Nevada and California are the hardest hit.
The Gov of CO is stepping in and trying to go back to the mortgage lenders to get some sort of retribution. The experts predict over the next 7 years over 1,000,000 homes could go into foreclosure.

[Wizard29]

So where's a good place to find these places for sale?
I'd like to try and score one in the La Verne/San Dimas/Claremont area...

[wsuwrhr]

So where's a good place to find these places for sale?
I'd like to try and score one in the La Verne/San Dimas/Claremont area...
I keep hearing it, but I don't see it
I am looking in the Upland, Alta Loma, Rancho area.

[HM]

While the numbers sound high...it is the typical media to give you the information that makes things sound as bad as possible. Reality is that there are more home owners than ever before. When you have record high home owners...you will also have record high foreclosures - they go hand in hand is really just a "DUH" statement. As a percentage, which they will not tell you, foreclosures are NO WHERE near a record high. The great depression took a LOT of homes, and back then the laws were such that you didn't have to be behind on your payments to get foreclosed on...the banks could simply say: "We want our money now" and if you didn't pay, you lost your house. Because there was a major shortage of cash in the great depression, the banks had to do this.
But, here is the bad news....foreclosures are not even warmed up yet. Will they hit a record high? Hard to say as the government and the banks are working on bail out programs.

[HM]

I keep hearing it, but I don't see it
I am looking in the Upland, Alta Loma, Rancho area.
You need to work with a short sale specialist. That is really how to find these deals. I have a client picking up a property about $100K under market value and is short selling by $50K under the mortgage owed.
Not many banks are dealing right now. While it is definitely a buyers market, you have to be willing to bid on 20-30 places until you get someone who wants to play ball. My clients parents are both real estate people and are both yelling at me for encouraging their son to go out and low-ball the properties - typical real estate agents. They are more worried about the commission they are going to make off of their own son than to focus on what he wants to accomplish.
If you need a contact for short sales, I work with a person in which short sales is all she does. She charges an upfront fee, but well worth it. And no...I don't get any kind of kick back from her.

[Ziggy]

Gotta feel for all those people losing their homes.
But they have other stuff thats nice............... and paid for :rolleyes: sorta :)

[OC28HEAT]

I run one of the largest Forclosure trustees in the 8 western states and let me tell you we are busy. I have tripled my staff in the last two months and probably going to hire more
Someone has to bury the dead:)

[Ziggy]

Always conflicting news in the media.
Yesterday my local paper had an article that said median home prices hit record high while at the same time sales numbers are in decline:confused: :confused:
I'm more inclined to believe when a repo trustee says he's busier than snot on a runny day....

[Hallett19]

So where's a good place to find these places for sale?
I'd like to try and score one in the La Verne/San Dimas/Claremont area...
I have listings all over the place, as far east as La Puente and as far west as Valencia. There are not that mean deals to be had, but we have seen a few so far ;)

[OC28HEAT]

I talk daily with senior management of most of the top ten lenders and am told that the numbers will not even peak untill the end of next year. We saw it coming. It is kind of sad most of these people took was what a decent home purchase and converted it into the ballers lifestyle now they will be living in abject poverty due to the tax implictions of short sales and forclosures (the lender will 1099 the forgiven debt).

[wsuwrhr]

That is funny, but sadly true.
"debt forgivness is taxable"
I talk daily with senior management of most of the top ten lenders and am told that the numbers will not even peak untill the end of next year. We saw it coming. It is kind of sad most of these people took was what a decent home purchase and converted it into the ballers lifestyle now they will be living in abject poverty due to the tax implictions of short sales and forclosures (the lender will 1099 the forgiven debt).

[OC28HEAT]

many people will have to file tax returns showing 250k that they did not withhold taxes on now they have to report it as an IC. We all know that the IRS is the worlds bes cllection agency.

[boatsnblondes]

IS anything going on to stop all this????? I mean, are banks doing anything to try to help people avoid foreclosure?? I can't imagine they WANT all these houses back???? Someone please explain to me how this is happening and the banks, who WROTE these shitty loans, are still a part of the problem.....

[ViB]

a small point of difference on the Colorado foreclosure numbers. Colorado has a Public Trustee system so that a foreclosure is reported when a NED (Notice of Election and Demand) is sent, NOT when the property is actually sold at auction or public sale.
Basically what that means is that the foreclosure numbers are overstated because of the number of successful redemptions, short sales, and workouts that prevent the actual public sale from occurring.
Not that there aren't a lot of foreclosures here, but the media, Zillow, etc. is exaggerating the numbers by not disclosing all the pertinent info.

[ViB]

many people will have to file tax returns showing 250k that they did not withhold taxes on now they have to report it as an IC. We all know that the IRS is the worlds bes cllection agency.
this is only true is you don't file and qualify for Chapter 7 or meet the IRS definition of 'Insolvency'. ( This is not intended to be legal or tax advice, anyone wanting a further explanation should consult an appropriate licensed attorney and/or accountant.)

[2Driver]

So where's a good place to find these places for sale?
I'd like to try and score one in the La Verne/San Dimas/Claremont area...
Not sure how reliable but use yahoo real estate and choose zip and category foreclosre. It showed 200+ in LHC.
Leave it to ABC news that the SKY IS FALLING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:rolleyes:

[C-2]

Everything is fine...the real estate market is good, the loan market is good and there is no bubble bust. All hype. :rolleyes:

[LakeTrash]

It is hard to feel sorry for people who bought houses they could not afford.
Heard one on a radio show yesterday. Signed up for a $2,600 note on a stated income loan. Actually had a $55K income. What do they expect?
LT

[HM]

this is only true is you don't file and qualify for Chapter 7 or meet the IRS definition of 'Insolvency'. ( This is not intended to be legal or tax advice, anyone wanting a further explanation should consult an appropriate licensed attorney and/or accountant.)
I was going to say the same thing, and you are also correct that BK is not neccessary to meet the definition of Insolvency, which most people who were foreclosed on or shortsold should be able to meet.
And, yes...consult an appropriate attorney and/or CPA.

[C-2]

It that BK is not neccessary to meet the definition of Insolvency, which most people who were foreclosed on or shortsold should be able to meet..
I don't believe the IRS accepts anything less than a BK petition, the tax payers burden is if they can work, they are gonna pay, no?

[cdog]

You should hear some of these over leveraged home seller’s talk how they'll just give the home back to the lender before they'll pay to get out of their home. I've walked from 3 sales this year because of this issue. It cracks me up how a home owner thinks I should work for free to sell their home while they extracted all their equity to buy the $80k Mercedes in the driveway.
I inform them of the 1099 tied to the debt forgiveness and I can hear their butt cheeks tighten. In Anaheim hills I've already seen 100k price reduction before 3-4 bedroom homes sell.

[2Driver]

It cracks me up how a home owner thinks I should work for free to sell their home while they extracted all their equity to buy the $80k Mercedes in the driveway.
I inform them of the 1099 tied to the debt forgiveness and I can hear their butt cheeks tighten.
I was at a home in Anthem last week. Amazed me up how many kid toting Mom's stopped by this house in their brand new $80K+ Mercedes SUV or Lexus SUV. Meanwhile you can't be anywhere in the community without eye shot of at least 2 for-sale signs.

[cdog]

I was at a home in Anthem last week. Amazed me up how many kid toting Mom's stopped by this house in their brand new $80K+ Mercedes SUV or Lexus SUV. Meanwhile you can't be anywhere in the community without eye shot of at least 2 for-sale signs.
Ha! I've heard stories about Anthem. Sounds about right. I bet I'll hear more as I set up my biz in AZ. I'm joining the ARMLS tomorrow. We may be neighbors soon. We've decided to buy a newer home up by where you're located.:)

[justfloatn]

I run one of the largest Forclosure trustees in the 8 western states and let me tell you we are busy. I have tripled my staff in the last two months and probably going to hire more
Someone has to bury the dead:)
And give the out of work agents a job!!lol :D
An agent was telling me he got out two yers ago because one in every ten peolple was a realtor in Nor-cal durring the peak. Think about that, your at a stop light and every tenth car passing in front of you has an agent driving it. :eek:

[justfloatn]

I talk daily with senior management of most of the top ten lenders and am told that the numbers will not even peak untill the end of next year. We saw it coming. It is kind of sad most of these people took was what a decent home purchase and converted it into the ballers lifestyle now they will be living in abject poverty due to the tax implictions of short sales and forclosures (the lender will 1099 the forgiven debt).
Yea, but they'll have a $130,000.00 boat in the front of the rental house:D :D
And still playing big ballers at the lake...

[2Driver]

Ha! I've heard stories about Anthem. Sounds about right. I bet I'll hear more as I set up my biz in AZ. I'm joining the ARMLS tomorrow. We may be neighbors soon. We've decided to buy a newer home up by where you're located.:)
When you pull into town let me know and come up for a cold one.

[cdog]

When you pull into town let me know and come up for a cold one.
Sounds like a plan. Will do.:D

[OC28HEAT]

a small point of difference on the Colorado foreclosure numbers. Colorado has a Public Trustee system so that a foreclosure is reported when a NED (Notice of Election and Demand) is sent, NOT when the property is actually sold at auction or public sale.
Basically what that means is that the foreclosure numbers are overstated because of the number of successful redemptions, short sales, and workouts that prevent the actual public sale from occurring.
Not that there aren't a lot of foreclosures here, but the media, Zillow, etc. is exaggerating the numbers by not disclosing all the pertinent info.
Sorry to disagree with you But all tracking is done through what our industry refers to as First Legal. Whether it be the NOD in California or any of the other trustee states.

[Mandelon]

We rehab these places for the banks and lenders and we've never been busier.
I haven't seen any real deals yet. I look for the real fixers, uncompleted remodels, fire damaged, and non permitted addition type places and the ones I've seen...haven't been bargain priced yet.
Things are continuing to slow. Lenders are tightening up the standards and that means less qualified buyers are out there.
Most of what I have seen is lower end properties, but it seems to be starting to move upward lately. Odd to be in a foreclosure when there is a new model home sales office two blocks away...
Values are down $50K to 100K in some areas around here.
Some of the brokers I deal with have over 200 listings.....:eek:

[OC28HEAT]

IS anything going on to stop all this????? I mean, are banks doing anything to try to help people avoid foreclosure?? I can't imagine they WANT all these houses back???? Someone please explain to me how this is happening and the banks, who WROTE these shitty loans, are still a part of the problem.....
Trust me the bank does everything withing their power to work with the borrower but most of the time about (85%) the borrower ignores the help out of fear.
We are all adults and most of these people knew or should have known what they were getting themselves into. A majority of this comes from Mortgage fraud such a no income documentation and inflated appraisal figures. The borrowers sign the 1003 stating the income that they make.
Many years ago when we bought our first boat the loan guy comes to the house to sign documents and I read that my wife suddenly had employment. I questioned the boat loan guy about this and he said that he did it all the time even though I had spotless credit and my ratio was perfect. He said boat lenders don't like SINK borrowers. I refused to sign the papers the was they were untill they were revised.

[OC28HEAT]

this is only true is you don't file and qualify for Chapter 7 or meet the IRS definition of 'Insolvency'. ( This is not intended to be legal or tax advice, anyone wanting a further explanation should consult an appropriate licensed attorney and/or accountant.)
I am not giving tax advice either but BK can not be filed on taxes owed. Either way you get the 1099 as a present and then just try to sort it out

[USCFAN]

Trust me the bank does everything withing their power to work with the borrower but most of the time about (85%) the borrower ignores the help out of fear.
We are all adults and most of these people knew or should have known what they were getting themselves into. A majority of this comes from Mortgage fraud such a no income documentation and inflated appraisal figures. The borrowers sign the 1003 stating the income that they make.
Many years ago when we bought our first boat the loan guy comes to the house to sign documents and I read that my wife suddenly had employment. I questioned the boat loan guy about this and he said that he did it all the time even though I had spotless credit and my ratio was perfect. He said boat lenders don't like SINK borrowers. I refused to sign the papers the was they were untill they were revised.
What is a SINK borrower?

[OC28HEAT]

What is a SINK borrower?
Single Income No Kids

[welk2party]

There is no single area that is the sole blame for the impending problems. The investors put up the money to the lender who lent it, and the borrower lost all capacity for thought and signed the paperwork. In the end, everyone had a hand in this. Everything happens in cycles..it will all work out in time. You can not have record growth in one area without it coming down at some point.

[Halvecta]

I read in the news recently about banks "helping out" people with all these loans and even the discussion of renegotiating the terms. There has even been talk among politicians to get state or federal funding to bail people out. WHAT!?!
This is nuts, this is helping the terrible decision makers, and in effect punishing those that had the self-discipline to not bite off more than they can chew. If you do not let bad financial decision-making run its course, then you end up with a larger disaster. Capitalism works, let it do its thing. Go after the big mortgage people and recoup the losses from them. Hey, while your renegotiating his loan, stop by my place and give me a few percentage points back for being a good guy.
Contracts are meant to force the terms, and if not there is punishment for breaking them, no matter who you are. This sounds like Sherriff Lee Baca is in charge of this fiasco too.
I am not out to get those who are in dire straights, but it seems to me that bailing out these people sends a signal to those who play by the rules: contracts only matter if it works for the bank. Let this market run its course on the way down, just like the housing pendulum went way out of control on the way up. This is called capitalism, and ironically, is what allows these situations to occur, but also creates the most productive and wealthy country on the planet. Rewarding irresponsibility is what the NBA does, but not what banks and the government should do.
Let's stand up and applaud those who said no, not now, to the negative amortization, 110% loan, for the new home. And put there head down and worked to get themselves in a better position financially. But do not bail out the "gotta have it now, no matter what may happen" clan. They are not the backbone of our economy, but usually cause the most problems.
OK there, I feel better.

[BBGetOn]

Well said.....

[Lavey29]

If anyone is interested, there is a bank owned property right next door to me in Alta Loma. 8 years old. 4 bedrooms. Needs some work to bring it back to the quality of the other homes on the culdesac but me and my neighbors would sure like to get some nice family peeps in there. Right off the 210 and Milliken. Great schools close by. Albertsons and other stores a block away and the Victoria Gardens about 2 miles away. I am thinking a 500K offer will get it. The bank is asking 569K. Houses are selling in the 650K within a few blocks of this house. Peak sales last year had houses as high as 750K. If anyone wants info send me a PM.

[wsuwrhr]

If anyone is interested, there is a bank owned property right next door to me in Alta Loma. 8 years old. 4 bedrooms. Needs some work to bring it back to the quality of the other homes on the culdesac but me and my neighbors would sure like to get some nice family peeps in there. Right off the 210 and Milliken. Great schools close by. Albertsons and other stores a block away and the Victoria Gardens about 2 miles away. I am thinking a 500K offer will get it. The bank is asking 569K. Houses are selling in the 650K within a few blocks of this house. Peak sales last year had houses as high as 750K. If anyone wants info send me a PM.
What do you estimate the lot size to be?
Over 10,000 sq or under?
brian

[OC28HEAT]

I read in the news recently about banks "helping out" people with all these loans and even the discussion of renegotiating the terms. There has even been talk among politicians to get state or federal funding to bail people out. WHAT!?!
This is nuts, this is helping the terrible decision makers, and in effect punishing those that had the self-discipline to not bite off more than they can chew. If you do not let bad financial decision-making run its course, then you end up with a larger disaster. Capitalism works, let it do its thing. Go after the big mortgage people and recoup the losses from them. Hey, while your renegotiating his loan, stop by my place and give me a few percentage points back for being a good guy.
Contracts are meant to force the terms, and if not there is punishment for breaking them, no matter who you are. This sounds like Sherriff Lee Baca is in charge of this fiasco too.
I am not out to get those who are in dire straights, but it seems to me that bailing out these people sends a signal to those who play by the rules: contracts only matter if it works for the bank. Let this market run its course on the way down, just like the housing pendulum went way out of control on the way up. This is called capitalism, and ironically, is what allows these situations to occur, but also creates the most productive and wealthy country on the planet. Rewarding irresponsibility is what the NBA does, but not what banks and the government should do.
Let's stand up and applaud those who said no, not now, to the negative amortization, 110% loan, for the new home. And put there head down and worked to get themselves in a better position financially. But do not bail out the "gotta have it now, no matter what may happen" clan. They are not the backbone of our economy, but usually cause the most problems.
OK there, I feel better.
I agree with this. The banks helping out through renegotiation is nothing new it is call Loss Mitigation and all Lenders have it FNMA FHLMC FHA and VA all require that this be part of the process. The problem is that the borrowers do not make contact or refuse to provide the necessary information to the lender so that they can review the process

[Lavey29]

Under 10,000 but decent sized lot. I am at 10,000 at the end of the culdesac. The backyard is pretty wide but not that deep. I estimate 25-50K to make it back into a really nice pad unless you can do some of the stuff yourself then it would be cheaper. Needs paint inside and out. carpet and landscape, but it is in a great family area with a lot of perks.

[cdog]

Under 10,000 but decent sized lot. I am at 10,000 at the end of the culdesac. The backyard is pretty wide but not that deep. I estimate 25-50K to make it back into a really nice pad unless you can do some of the stuff yourself then it would be cheaper. Needs paint inside and out. carpet and landscape, but it is in a great family area with a lot of perks.
Is it a single story? I've got a retired couple looking in that area but need a single story. They would be way cool to have as neighbors. The guy has a blown viper he drag races. If so can you PM me the address.
Thanks

[Lavey29]

Sorry Cdog,,,it's a 2 story. Not many singles out here anymore unless you are looking at older homes south of Baseline.

[riverroyal]

a all time medium high price last month,over 600k.Market is very confused

[wsuwrhr]

Under 10,000 but decent sized lot. I am at 10,000 at the end of the culdesac. The backyard is pretty wide but not that deep. I estimate 25-50K to make it back into a really nice pad unless you can do some of the stuff yourself then it would be cheaper. Needs paint inside and out. carpet and landscape, but it is in a great family area with a lot of perks.
Bummer. I need enough space to build a second garage in the backyard.

[Lavey29]

Some people have done that in our tract of homes. One guy built a 4 car detached in his backyard. I do not think there is enough room on the sides of this property for one unless it was a small single car garage.

[wsuwrhr]

Some people have done that in our tract of homes. One guy built a 4 car detached in his backyard. I do not think there is enough room on the sides of this property for one unless it was a small single car garage.
The 4 car garage is more my speed.

[talkinghead]

I hope the mortgage industry gets some real reform, and I hope these newer online real estate companies change the way real estate is bought and sold as well.

[STVBOY]

All these preforeclosure numbers are very inflated.When people are refianancing and there is a void between the transition it pops up as a preforeclosure which means nothing really.Unless the property is bank owned you really can't do anything with a "preforeclosure" unless it goes up for sale!