December 2011 Archives » North OC Housing News

This must be an after Christmas Special in La Habra.

Dec 312011

The reason I made that statement is that this house sold for $555,000 in 2005 in La Habra. That wasn’t even the peak of the housing market, however it’s listed at $270,000. That’s a gross precentage change of 51.4%. At this price it’s at rent parity and it looks like it’s been somewhat maintained. On larger market note some areas of Brea and Fullerton haven’t corrected this larger of a percent Are those areas headed for a slimilar correction. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

Is a flipper going to lose his/her shirt in Anaheim Hills?

Dec 302011

This house is located in Anaheim Hills. It looks like someone purchased in June 2010. Now it’s back on the market and it’s below the 2010 purchase price. Is this a flip that has gone wrong? It been updated and it’s in very good condition. The real question: What will be the sales price and what will be the loss? Finally, it’s priced much higher than the competing listings. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- [Read More...]

Foreclosures by major banks increase 21.1% in third quarter

Dec 292011

From LA times The jump in foreclosures from the second quarter came as mortgage servicers lifted holds they instituted as authorities investigated faulty paperwork. Separate research showed homes en route to being seized fell 15.8% in October from a year earlier. This is no surprise. They were so many foreclosure moratoriums that it slowed down the number of homes that actually got to a Notice of Trustee Sale. Now the banks are trying to clear out of their defaulted mortgages and turn them into REO’s. And even some of these home are not making it Trustee Sales as the banks keep delaying the foreclosure sale and doing re-schedules at the County Court Houses. CA – Foreclosure Outcomes If you look at [Read More...]

Bank of America: We bought Country-wide and all we got was this -1092% return

Dec 292011

BofA spent $4 Billion to purchase Country-wide but has spent $43.693 Billion in claims, settlements, modifications, and business losses. To be fair $12.7 Billion of the loss is hard to separate from BofA and Country-wide since it’s a business loss includes both units Mortgage abuses settlement, $335 million: BofA today agreed to pay $335 million to settle allegations that Countrywide discriminating against blank and Hispanic home borrowers. The DOJ said it was the biggest fair-lending settlement in history. Mortgage-bond settlement, $8.5 billion: BofA this summer announced a sweeping settlement under which it agreed to pay $8.5 billion to settle claims by private investors, including Pimco and BlackRock, that lost money on mortgage-backed securities. Loan modifications, $8.4 billion: State regulators negotiated [Read More...]

50% of vintage 2006-2007 mortgages in California went to homeowners that already owned a house

Tagged with: 3 - Lenders-Banksters

Dec 282011

50% of vintage 2006-2007 mortgages in California went to homeowners that already owned a house

In fact all the major sunbelt bubble states: California, Arizona, Nevada, and Florida had that same statistic. The Federal Reserve Bank of New York recently asked a simple question: What percentage of mortgages lent during the bubble went to people who owned more than one home? Its answer: nationwide, over a third. In Arizona, California, Florida, and Nevada, it was nearly half. Astoundingly, about 1 in 10 mortgages lent in those states during 2006 and 2007 went to those who owned more than four homes. All figures are about double the rate seen before the bubble. This shows the complete failure of the underwriting processing during this period. Probably some homeowners pulled out money in their first or second homes purchased [Read More...]

Increasing borrowing costs will lower house prices

Dec 272011

Borrowing costs are likely to increase in 2012 for a variety of loans. The lower conforming limit will push many borrowers to either the FHA or the jumbo market where borrowing costs are higher. The FHA may also raise its borrowing costs again to cover the inevitable losses from the ongoing decline in home prices. Further, the new rules on conforming mortgages will push up costs on loans which do not conform. The result of higher borrowing costs will be greater pressure on home prices. If borrowing costs go up, affordability declines, and it’s only affordability which will put a floor beneath home prices. New rules would raise mortgage costs By JEFF COLLINS / THE ORANGE COUNTY REGISTER — December [Read More...]

Surge in discounted REO expected next year

Dec 262011

Banks dramatically increased their scheduled foreclosure auctions in November 63% over October. They appear serious about clearing out shadow inventory and getting what capital they can out of the loans secured by houses occupied by delinquent mortgage squatters. Scheduled foreclosure auctions soar in California Banks set the clock for forced sales of more than 26,000 homes in the state in November, a 63% increase from October. Overall foreclosure notices nationwide fell last month. By Alejandro Lazo, Los Angeles Times — December 15, 2011 Banks in November scheduled more than 26,000 homes to be sold at California foreclosure auctions, a 63% increase from October and a sign that a surge in discounted, bank-owned properties is on track to hit the market [Read More...]

1991 Rollback in Santa Ana

Dec 232011

This ugly old condo is a 1991 rollback! Twenty years, zero appreciation. Actually, that’s not quite true, it did fall, then rise, then fall again. At one point, a bank believed this was worth $290,000. Now they have it as an REO, and they are looking at a 62% decline in price from the peak. Ouch! – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- — ————————————————————————————————————————————- Proprietary OC Housing News home purchase [Read More...]

3582 South MALL St Irvine, CA 92606

Dec 222011

The bank is playing flipper on this one. This property was in such a state of disrepair after the former occupants left that the bank spend money renovating it to get a better price. Asking only $227/SF, it’s another Irvine property trading well below rental parity. – —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- —- — ————————————————————————————————————————————- This property is available for sale via the MLS. Please contact Shevy Akason, #01836707 949.769.1599 sales@ochousingnews.com [Read More...]

Home prices across OC continue to plummet

Tagged with: 2 - Orange County, Market Bottom

Dec 212011

Home prices across OC continue to plummet

Prices across most of Orange County continue to decline. The OC Register reports prices have hit a near three-year low. My own analysis of the MLS data shows Irvine teetering on the brink of taking out the 2009 low and setting a new eight-year record low. O.C. home prices hit 31-month low December 13th, 2011, 9:39 am Orange County’s home pricing got hit with autmun’s chill, as builders had a record-worst sales month. DataQuick reported this morning that 2,297 residence sold in November. That is up 1.8% from a year ago. That gain came at a price. Literally. Median selling price was $400,000 — the lowest since April 2009 and off 8.0% in a year. Orange County’s median first hit $400,000 [Read More...]