Foreclosure Radar reports a drop in Notice of Default(NOD) filings from this time last year. The data supports our recent experience between investors and our clients who are working to modify their loans or short sale before a NOD is filed. I have been seeing more cooperation by lenders and servicers when communicating our intent ahead of time.
Foreclosure is a Reality in 2011
The federal government has provided relief programs to help those who would like to modify their loan and the Obama administration efforts continue but there have been recent attempts by federal legislators to kill HAMP. As you see in this chart investors are also throwing in the towel and my sense is that those people who haven’t made a mortgage payment in 18+ months are now going to have to come to grips with the reality that foreclosure is on the near horizon.
Cancellations have dropped indicating that modifications and/or a short sales continue to be a challenge for some homeowners. REO numbers also indicate that banks are steadily foreclosing in Santa Clara County.
Affordable Market Hit Hardest
The chart below shows the $300,000 to $500,000 real estate market has been impacted the most in February.
Click Player to see video
Sales activity lighter than 2009
Santana Row area neighborhoods continue to show lower activity after the homebuyer tax credit expired in April. Buyers continue to pay list price on homes sold in these neighborhoods but the activity has been half of 2009 levels. In 2009 there were 114 sales compared to 54 in May – July 2010.
Conventional is king
Conventional sales were the predominant financing method used to purchase homes following the same pattern of 2009. FHA continues to be in the least used or accepted financing method by sellers when reviewing offers. Buyers should consider conventional loan products to increase their chances of getting an accepted offer.
Median rises in 2010
2010 median sales prices was $610,000 compared to $533,500 in 2010. Buyers also had more negotiating power in 2009 to 97% of original list. 2010 buyers are having to pay slightly more to 102% of original list making it 5% more expensive to buy a home in these neighborhoods.
Yosemite – John Muir Trail 2010
This blog post is meant to be more of a confession instead of your usual market update. It’s meant to be my re-commitment to providing news, views, and market information after a two month hiatus.
What did I do and where was I?
Good question, the best way to describe it is that we all go through our own valleys and mine was mostly focused on the business at hand and accomplishing some personal and physical goals. Blogging has been a joy but it does come with it’s challenges. To meet those challenges I spent time climbing Half Dome, reading, and praying.
Written Values
Perhaps the most challenging for me is consistency. Consistency comes from committing to my values. I know what my values are and I live my values every day. Until now the one thing I didn’t have was a list of written values and here is a compressed version of my list. (Still is and will always be a work in progress)
- I am at my best when I trust in GOD with all my heart, mind, and strength.
- I find enjoyment in my personal life and will challenging myself to grow in my relationships with GOD, family, physically, and intellectually.
- I enjoy my work and find ways to positively impact the lives of my clients by providing excellent service, support, and strong relationships.
- I will not allow myself to drift without scheduling activities that support my values, goals, and daily tasks.
- I will find opportunities to use my natural talents and gifts such as Leadership, being a mentor, creating relationships, and last but not least being the best father to my child.
- I can do anything I set my mind to. I will create a real estate organization that will impact and improve the lives of people.
Why am I sharing this?
Ben Franklin had a written list of values from an early age and look at his impact on this country. You see I love my career in the real estate industry but it will mean nothing to me if I can’t look back and know that I made a difference in someones life.
We live in a “i” society and as such I choose to forgo doing the popular things and instead doing the things that are right. It was during my recent trip into the Yosemite back country that I really felt I was going down the right path spiritually, emotionally, physically, as a father, and in my business.
The higher you climb in life and push through those challenges the more you are rewarded.
Book Recommendation: The 10 Natural Laws of Successful Time and Life Management – Proven Strategies for Increased Inner Peace – Hyrum W. Smith
California took a bold step today in helping those homeowners in default by allowing taxes owed to the state to be forgiven through 2012.
As mentioned in my blog a few days ago and now the Governor says he will sign the bill as reported by the Sacramento Bee.
“Primarily, the bill affects people who had debt forgiven as they lost homes in foreclosures, short sales and deeds in lieu of foreclosure last year – and through 2012 now. Also affected: those who got loan modifications that cut the amount they owe the bank.”
Read more: http://www.sacbee.com/2010/04/09/2666095/california-wont-tax-forgiven-home.html#ixzz0kdhKy8yh
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