Forclosureradar.com posted its most recent findings today indicating that Bank Owned inventory continues to tighten. Furthermore the report indicates that California is among the high foreclosure activity states that is seeing a slowdown in foreclosure inventories. Santa Clara County bank owned inventories have slipped to a new low of 1939 for February 2012 as compared to the previous year.
Bank Owned
Bank owned activity has certainly made it easier for investors to benefit from the foreclosure activity while first time home buyers have had little luck in competing with investors to pick up these opportunities. The map below shows the bank owned inventory as of today for the City of San Jose alone. There are more than 7,000 properties that are 90 days or more in the foreclosure process for Santa Clara County.
Impact on your home search
For this reason I continue to think that short sales are the best opportunity for patient home buyers who want a good deal and are willing to work within the constraints of short sale timelines.
Relates article:The Foreclosure Report – February 2012
The Latest Foreclosure data shows December being one of the lowest foreclosure months on record, but is this the calm before the storm? Take a look at December 2011 data showing 79 foreclosures(red).
Bank of America May Lead The Way!
Image via Wikipedia
A San Francisco Times article published late last year pointed to data by foreclosureradar.com showing significant foreclosure activity by Bank of America.
Read Article here: Bank of America said to fuel big increase in California foreclosures
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Most San Jose neighborhood values will continue to perform well in 2011 and into 2012 even with the recent negative news about Bank of America unleashing a slew of new foreclosures into California in the coming months.
Foreclosure levels will remain the same in 2012
That’s a pretty bold statement on my behalf but having just retuned from a national foreclosure convention I stand in pretty good company including the likes of Freddy Mac economists and various other national asset diposition companies who are all waiting for the foreclosure activity to increase.
The challenge over the last year has been the slow and methodical process of making sure banks are staying within the legal boundaries of the foreclosure process all brought on by the ROBO signing lawsuits. As a result the anticipated levels of foreclosiure activites are expected to stay at current levels through 2012.
What does this mean for San Jose Neighborhoods?
Neighborhoods like Willow Glen, Rose Garden, Almaden Valley, and Santana Row to name a few should continue to maintained their values while Downtown, Central San Jose, South San Jose, and the east valley will feel the affects of foreclosure activity.
Should I wait for the market to turn?
Experts at the foreclosure convention are now saying that we will continue to see the current real estate market through 2016. You have plenty of time to buy before the market sees a significant change and until then buyers will continue to find opportunities in those neighborhoods affected by foreclosures.
May Foreclosure data didn’t show much of a difference other than the continued climb to a one year average from the time of a default to sale date. This trent continues to show evidence that foreclosure modification efforts and short sales are allowing homeowners more time to help them stay in their homes.
Foreclosure inventories stayed steady with little change to the amount of people who defaulted on their loans(green) and even less sale activity(blue). This is the first month that showed 0% activity in REO inventory levels(red).
Notice of sales increased(blue) while people who received a notice of default fell slightly(green).
Cancellations fell last month reducing the amount of foreclosure postponements for people currently in default(grey). Postponements(cancellations) are a good indicator of modification and short sale activity. The number of properties going back to the banks as a result of a sale increased slightly(red).
The average time a homeowner had before losing their home to foreclosure has continued its steady climb and is close to one year(green). Bank are taking an average of 200 days to sell properties(red).
Project Homeowner
I’m sure by now you must have heard some news about a foreclosure prevention event going on in downtown San Jose this week but do these guys really help where most people have run into decline after decline to a modification request. I can’t really say that NACA will save your home from foreclosure but what I can tell you is what I have seen in my own experience with Project Homeowner.
Project Homeowner
A few years ago the Department of Real Estate and CHASE got together to create a traveling foreclosure prevention roadshow very similar to what you now see on a regular basis at events like the NACA one in San Jose.
- What has changed from few years ago is the investors willingness to participate in such events by allowing the borrower to modify.
- What hasn’t changed are the general guidelines of most investors and that is “Does this modification help the homeowner?”.
Project homeowner was revolutionary because it was able to bring the big lenders to the table (CHASE, Wells Fargo, Bank of America, etc…) and a few years ago lenders did not have staff on the ground to accommodate this need.
What NACA brings to the table
One of the reasons NACA has had much success nation wide is because of the media attention and I would imagine the lenders looking for an opportunity to create positive public relations impact with it’s homeowners.
Some things never change
The bottom line is this;
- If the lender owns the note(your loan) then your chances of a modification increase greatly. If an outside investor owns the note the bank must ask for investor for approval in order to modify your loan.
- Either way this scenario has not changed from past years and can dramatically increase your chances of a successful modification.
It doesn’t hurt to try
I received a call from a client over the weekend asking me if they should try to modify though NACA and may answer was “absolutely yes”. The great thing about this event is that most of the big lenders have staff to help escalate your situation to a level where the decision makers can help you get to your goal.
NACA Foreclosure Prevention infomration:
https://www.naca.com/index_main.jsp
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