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 California Association of REALTORS® affordability report for Q4 is out and 64 percent of Santa Clara County residents have the ability to buy a home based on these numbers.
The Numbers for Santa Clara County
- 64 percent of Santa Clara County homeowners are able to afford a home
- $466,650 is the entry level price
- $2,300 Monthly payment
- $68,880 minimum income to qualify
See full articles here:
C.A.R. Affordability index Q4 2011
First-time Buyer Housing Affordability Index Methodology
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
Related articles
The City of San Jose Housing Department And Housing Trust of Santa Clara County are in the final stretch to use up all of the 23 Million award given through the National Stabilization Program part two. The second round of these dollar have been earmarked for revitalization of communities affected by foreclosures and to assist homebuyers purchase a home.
Who is Involved?
The Housing Trust of Santa Clara County is responsible for the distribution and education of these funds along with the Housing department for the City of San Jose. Although the City of San Jose is driving this opportunity to targeted areas the Santa Clara County Housing Trust is charged with educating the community. Other organizations involved in this effort are Neighborhood Housing Services, www.recovery.gov and NHORA(The National Hispanic Organization of Real Estate Associates).
Whats in it For the Public?
Opportunity to not only become a homeowner but also to begin the recovery of the housing market in Santa Clara County. Economists do tend to agree that the recover of the housing market will start in the Silicon Valley primarily because of Facebook and Google’s continued growth. In fact most of Santa Clara County is dealing with a housing shortage and multiple offers for home buyers.
Who Can Qualify?
There are income limitations to qualifying for these programs among them is the Purchase Assistance Loan(PAL).
|
Maximum Income by Household Size — FY2012 |
| Household Size |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
| Income Limit |
$ 88,200 |
$ 100,800 |
$ 113,400 |
$ 126,000 |
$ 136,100 |
$ 146,150 |
$ 156,250 |
$ 166,300 |
Some of the guidelines include the following;
- You do not have to be a First-Time Homebuyer to qualify, however you must live in the home as your primary residence.
- Purchase price of home must be 1% below appraised fair market value.
- You must complete an 8 hour HUD approved Homebuyer Education class.
- Property is subject to environmental review and home inspection by the City of San Jose.
How To Get More Information?
Contact the Housing Trust Of Santa Clara County for more information http://www.housingtrustscc.org/
Class registration contact: jeanette@housingtrustscc.org
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).
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