Mortgage loan delinquencies rise, Foreclosures Flat
Sep. 7, 2009
www.Koziel.com
Mortgage loan delinquencies rise, Foreclosures Flat
Our California Association of REALTORS alerted us this week that Mortgage loan delinquencies did rise but foreclosure were flat. Might this mean that the banks are beginning to work out some of the short sales that have been on their desks for months? I hope so!
"The delinquency rate for mortgage loans on one-to-four-unit residential properties rose to a seasonally adjusted rate of 9.24 percent of all loans outstanding as of the end of the second quarter of 2009, up 12 basis points from the first quarter of 2009, and up 283 basis points from one year ago, according to the most recent Mortgage Bankers Association’s (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased 64 basis points from 8.22 percent in the first quarter of 2009 to 8.86 percent this quarter, according to the report. The delinquency rate breaks the record set last quarter, based on MBA data dating back to 1972.
“While the rate of new foreclosures started was essentially unchanged from last quarter’s record high, there was a major drop in foreclosures on subprime ARM loans,” said Jay Brinkmann, MBA’s chief economist. “The drop, however, was offset by increases in the foreclosure rates on the other types of loans, with prime fixed-rate loans having the biggest increase. As a sign that mortgage performance is once again being driven by unemployment, prime fixed-rate loans now account for one in three foreclosure starts. A year ago they accounted for one in five.
California, Florida, Arizona, and Nevada continue to have a disproportionately high share of foreclosure starts, although the share has fallen slightly from last quarter, according to the report, with 44 percent of all of the nation’s new foreclosures during the second quarter of this year, down from 46 percent in the first quarter."
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Foreclosures are everywhere!
Aug. 14, 2009
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www.SharonKoziel.com
www.EducationPlus.biz
I believe everyone is feeling the fallout from this recession but some parts of the US are coming out a bit on top. Here is a great interactive map from NPR that shows you where you might move if you want to get away from the heavy hit counties.
Foreclosures are everywhere!
Just click on this link and find your state on the right hand side to narrow your search.
While on the site you might review the unempoyment rate as well.
Just looking at the U.S. as a whole is interesting and if your are from the middle part of our great county you might be smiling more that us on the coasts.
View more entries tagged with: Foreclosures,
Unemployment,
Corona,
Ca
Market Conditions in Corona, CA
Aug. 6, 2009
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www.SharonKoziel.com
www.EducationPlus.biz
I am the type of person that believes we should look at the glass half full so I am happy to report that the Corona, CA real estate market is improving. Lets get some good press out to the public and let them know that things will turn around. Here are some facts:
Months Units Median Price Avg Days on Market
| Jul-09 |
862 |
329,000 |
99 |
|
| Jun-09 |
1,006 |
329,850 |
110 |
|
| May-09 |
1,108 |
325,950 |
119 |
|
| Apr-09 |
1,335 |
329,000 |
116 |
|
| Mar-09 |
1,570 |
321,950 |
115 |
|
| Feb-09 |
1,682 |
324,900 |
116 |
|
| Jan-09 |
1,884 |
328,900 |
124 |
|
| Dec-08 |
1,970 |
330,000 |
129 |
|
| Nov-08 |
2,131 |
330,900 |
119 |
|
| Oct-08 |
2,375 |
339,000 |
113 |
|
| Sep-08 |
2,473 |
349,900 |
113 |
|
| Aug-08 |
2,513 |
354,000 |
113 |
|
| Jul-08 |
2,667 |
360,000 |
108 |
The number of homes for sale are down 68% but the median price is increasing. With less homes on the market surply and demands takes over. Days on the market is decreasing which means the buyers are acting on good buys.
The average months supply of inventory is down 78.3%.
It's time for buyers to start realizing that unless things change soon they should be in the market now!
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Real Estate,
Corona,
Ca
Appraisal rules rewritten Poorly
Jul. 27, 2009
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www.SharonKoziel.com
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Appraisal rules rewritten Poorly
In a desire to curb abuses in home loan appraisals our government passed a law that became active on May 1st of this year. The desire of this law was to curb the bad appraisals that occurred during the housing boom. The new law prevented appraisers from having contact with the lender or REALTOR involved in the transaction. This would prevent undo pressure to be brought on the appraiser to “come in at a certain price”. It also prevents the real estate agent from telling the appraiser special features the home my have or the reason why the house down the street with no drywall was sold so low. Yes, you might say the appraiser will find that out when he visits the home but with this new process many appraisers are using pictures in the MLS as their home investigation and doing a drive by only. This lack of effort is partly caused by the low compensation the appraisers are receiving since the Management company is now taking part of their income. They need to do twice as many appraisals to earn the same amount of money they once did.
To protect themselves from liability, most lenders are ordering appraisals from appraisal management companies (AMCs), which intermediate between the lender and the appraiser. The AMC selects and pays the appraiser, receives and evaluates the appraisal, and passes it to the lender, which has no direct contact with the appraiser.
What could be wrong with this plan? Well after just a few weeks we now have a major problem. The AMCs don’t have companies in every area so we now have appraisers from one county trying to do appraisals in another county. Their bias for certain areas is showing up with lower appraisals in many areas because they don’t know the area or the different complex array of site issues. Many deals are being cancelled because of low value in the appraisals. Recently the National Association of REALTORS worked to get local appraisers doing local appraisals. Although this is suppose to be implemented immediately I don’t see it happening.
The new rules is adding time to the mortgage process and preventing anyone from talking to the appraisal to remedy the situation. If a borrower has to change lenders in the middle of a transaction we can no longer use the first appraisal which adds cost to the borrower.
We need to get the housing market back on track and this new law isn’t going to do it! Call your representatives today and demand they scrap this law and let the marketplace get back to creating value.
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Wake up America!
Jul. 19, 2009
www.Koziel.com
Are you paying attention to our government?
Money is tight for us all but the consumer better keep a keen eye on the government in the coming weeks. More laws are being prepared to raise money for the county, city and federal government. Do you think they don't concern you! Think again. Many areas are trying to pass point of sale laws that will have a homeowner replacing wood-burning devices, windows, air conditioners and plumbing before closing can take place. The REALTOR® Action Fund is fighting to protect homeowners but we need everyone to get involved.
If you think I am calling wolf then let me point out two laws that affect millions of sales in the coming years.
New laws have taken effect in San Luis Obispo County requiring residents in Los Osos to retrofit plumbing fixtures at point of sale because of the town's dwindling water supply. Specifically, toilets are to be replaced with toilets rated at no more than 1.28 gallons per flush (gpf).
Contra Costa County in the San Francisco Bay Area adopted an ordinance which requires gas shut-off valves be installed downstream of the meter and at the point of appliance on all buildings sold within unincorporated areas of the county prior to entering into an agreement for sale or prior to close of escrow.
The California Energy Commission currently has a state-wide point of sale ordinance for energy conservation in their strategic plan and the California Public Utilities Commission has a recommendation for local point of sale ordinances in their recently released draft California Energy Efficiency Strategic Plan. Therefore, in the future all local governments may be required to adopt more stringent standards.
Since we are seeing very few sales with homeowners walking away from the closing table with equity many transactions are going to fall out of escrow if homeowners don't have money to pay for these requirements and the buyer will not pay for them.
It's time to tell our legislators that point of sale is not the time to demand these repairs.
View more entries tagged with: Laws,
Government,
Legistative,
Point Of Sale,
Sharon Koziel
Corona, CA getting a Certified Farmers’ Market!
Jun. 30, 2009
Corona Certified Farmers’ Market
To say we are excited in Corona, CA about our new Farmers' Market is an understatement. After a lot of hard work by a lot of local people our dream of a Farmers' Market will be coming true. Beginning on July 11, 2009, Farmers’ Market Management Company, Inc., established over 30 years ago and known for its success in farming and managing certified farmers’ markets, will be bringing its farmers to Corona. It will be held on Saturdays, 8:30 am to 12:30 pm (rain or shine) Main Street Market Place (Main and Rincon). Mayor Steve Nolan said, “Our heritage is based on farming; it is a natural that we would finally have a certified farmers’ market to call our own.”
All produce available is locally grown by the farmers selling it and none is brokered. Some farmers will offer organic or certified organic fruits and vegetables.
In addition to the naturally ripened produce, fresh cut flowers and some simple food items such as kettle corn or BBQ beef will also be available. Local artisans will be selling handmade crafts.
Come join the fun and support this new effort. A big thank you for all who worked so hard to achieve this great market for Corona.
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Riverside, CA Homes are selling!
Jun. 21, 2009
www.Koziel.com
It's time to look at the glass half full!
Home sales are increasing in Riverside County and although the sale prices are down I believe that supply and demand will correct this shortly. Many investors that I work with say they are buying homes in many cities and that they still are finding renters.
Single Family Residence
Time Period Number of Sales Median Sale Price
Apr 2009 3,363 $197,000
Apr 2008 3,020 $293,250
Mar 2009 3,407 $205,000
Mar 2008 2,555 $305,000
Information gathered from the Multi Regional MLS.
The First Time homebuyer programs are still a wonderful opportunity for people to get into their first homes. The $8,000 credit from the Federal Government doesn't have to be paid back like the earlier programs so don’t miss this opportunity! California also has a program that will give you an additional 5% of purchase price, not to exceed $10,000.
See full chart on both First Time Credits at http://www.koziel.com/New_Tax_Credits/page_2218833.html
,
Tax Credits,
Riverside County,
Home Sales,
California,
Sharon Koziel
Financial Incentives and Uniform Process for Short Sales
May. 14, 2009
Have You Heard?
News Flash
Obama Administration Announces
Financial Incentives and Uniform Process for Short Sales
The NATIONAL ASSOCIATION OF REALTORS® (NAR) today announced that the Obama Administration has added new incentives and uniform procedures for short sales under its new Foreclosure Alternatives Program (FAP), part of the administration’s Making Home Affordable plan.
Loan servicers may consider short sales or deeds-in-lieu of foreclosure for borrowers who do not qualify to have their loans modified on a permanent basis under the Making Home Affordable Loan Modification Program.
· Borrowers/homeowners qualify under the FAP if they meet minimum eligibility requirements for the Home Affordable Modification program, but don’t qualify for a modification or do not successfully complete the three-month trial period. Before proceeding with a foreclosure, servicers must determine if a short sale is appropriate.
· Incentives include: $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure; $1,500 for borrowers/homeowners to help with relocation expenses; and up to $1,000 toward the cost of paying junior lien holders to release their liens (one dollar from the government for every $2 paid by the investors to the second lien holders).
· The program will include streamlined and standardized documents, including a Short Sale Agreement and an Offer Acceptance Letter. The goal is to minimize complexity and increase use of the short sale option.
· Servicers will independently establish both property value and minimum acceptable net return, in accordance with investor requirements. The price may be determined based on an appraisal or one or more broker price opinions (BPOs), issued no more than 120 days before the date of the short sale agreement.
· In the Short Sale Agreement, servicers must give borrowers/homeowners at least 90 days to market and sell the property, or up to one year, depending on market conditions. Property must be listed with a licensed real estate professional with experience in the neighborhood. No foreclosure may take place during the marketing period (at least 90 days) specified in the Short Sale Agreement.
· The Short Sale Agreement must specify the reasonable and customary real estate commissions and costs that may be deducted from the sales price. The servicer must agree not to negotiate a lower commission after an offer has been received.
· Servicers may not charge fees to borrowers/homeowners for participating in the FAP.
· The program is in effect through 2012.
· Servicers have the option to require the borrower/homeowner to agree to deed the property to the servicer in exchange for a release from the debt if the property does not sell within the time allowed in the Short Sale Agreement (plus any extensions)
Reprint from :CALIFORNIA ASSOCIATION OF REALTORS®
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Stop kicking yourself about forgetting that flash drive!
May. 14, 2009
www.Koziel.com
Stop kicking yourself about forgetting that flash drive!
I have to tell you about my new favorite website! If you have ever been caught sitting in front of the wrong computer when you need to access a document this new program is for you. LIVE MESH! Now connect your work computer, your home laptop, your Mac or your mobile phone. Files are needed on all devices but why keep copies of files on all devices? Synchronize files from all devices easily. Share files with friends and co workers. Now everyone can work on a project and see changes made by the team. Live Mesh notifies you when a member is added to your Mesh or when files are changed.
Second advantage: With software companies limiting the number of times a program can be loaded this is a great chance to access that special program from any computer.
If you are like me I have often emailed myself a file so I would have access to it at the office. Now I can synchronize important files on any device I like. Sync a folder with only one or two of your devices, or with all of them.
Live Mesh is free and you are allowed 5 GB of storage on your Live Mesh site. As the website states, “Who says you can’t be in two different places at once? With Live Mesh, you can connect remotely from one computer to another, so you can access files, programs, and settings as if you were sitting in front of that remote computer.” Check it out today at www.mesh.com.
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Our CA Legislation is not thinking clearly again!
Apr. 14, 2009
www.Koziel.com
Our CA Elected Officers are not thinking clearly again!
Do you think of real estate agents as a member of the financial service sector? Our we the same as mortgage lenders, pawnbrokers, banks, or credit unions? The California legislators think we are! AB33 (Nava), was approved by the Assembly Banking Committee. The bill would abolish the Department of Real Estate along with the Department of Corporations, the Department of Financial Institutions and the Office of Real Estate Appraisers. The new Department of Financial Services would now have jurisdiction and responsibilities for these departments. Since real estate agents do not provide financial services this seems strange to many of us. We are the only group from the group listed above that are individually licensed agents (independent contractors) who have fiduciary agency relationship with our clients.
When my children were little we watched TV and played the game "One of these things don't belong with the others" . Perhaps we should sit our legislators down and play this game again!
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Ab33 Nava,
Sharon Koziel,
Real Estate
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