The California legislature is quickly passing laws to make it more difficult to forecloses. The Orange County squatting community will be pleased. Lenders are expected to raise the costs of the fees for new mortgage.
Monday Morning Cup of Coffee: Calif. becomes hotspot for housing battles
By Justin T. Hilley July 2, 2012 • 5:00amA new study just released by industry groups, authored by research and consulting firm Beacon Economics, concludes that if the Homeowner Bill of Rights were to be signed into law they will ultimately harm the vast majority of California homeowners.
Two central provisions of the Bill of Rights passed through a conference committee last week, sending the bills to expected votes early this week in the state assembly and senate. If the provisions are approved, they’ll go to the governor’s desk for signing or veto.
The bills impose stricter rules on mortgage servicers seeking to non-judicially foreclose on homes with mortgages in default and expose mortgage servicers to substantial new legal liability. These rules, Beacon says, have the effect of slowing the foreclosure process and increasing fines on mortgage servicers for various transgressions within the foreclosure process.
Beacon concludes that the bills would reduce home values as a result. Housing markets with longer length foreclosures see greater discounts on foreclosed units when mortgage servicers eventually sell them — relative to non-distressed transactions. These discounts, Beacon says, pull the whole market down with them.
The research and consulting firm also argues that the bills could add to the financial burden of distressed homeowners: “The non-judicial foreclosure process is more efficient compared to the judicial foreclosure process, and it comes with an important caveat: when using non-judicial foreclosure, lenders…cannot seek compensation for their mortgage losses out of the borrower’s other assets. If the non-judicial route is lengthened and made more costly, many lenders may decide to pursue a judicial foreclosure…and thus pursue remedies like deficiency judgments, ultimately costing the borrower more in the long run.”
Anaheim Hills Overview
| Median home price is $425,000. Based on a rental parity value of $568,000, this market is under valued. |
| Monthly payment affordability has been improving over the last 7 month(s). Momentum suggests improving affordability. |
| Resale prices on a $/SF basis increased from $240/SF to $243/SF. |
| Resale prices have been falling for 12 month(s). Price momentum suggests falling prices over the next three months. |
| Median rental rates declined $0 last month from $2,358 to $2,357. |
| Rents have been slowly rising for 12 month(s). Price momentum suggests slowly rising rents over the next three months. |
| Market rating = 6 |
Proprietary OC Housing News home purchase analysis 
6615 East CANYON HILLS Rd Anaheim Hills, CA 92807
$899,900 …….. Asking Price
$320,000 ………. Purchase Price
4/21/1988 ………. Purchase Date
$579,900 ………. Gross Gain (Loss)
($25,600) ………… Commissions and Costs at 8%
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$554,300 ………. Net Gain (Loss)
============================================
181.2% ………. Gross Percent Change
173.2% ………. Net Percent Change
4.2% ………… Annual Appreciation
Cost of Home Ownership
——————————————————————————
$899,900 …….. Asking Price
$179,980 ………… 20% Down Conventional
3.80% …………. Mortgage Interest Rate
30 ……………… Number of Years
$719,920 …….. Mortgage
$173,396 ………. Income Requirement
$3,355 ………… Monthly Mortgage Payment
$780 ………… Property Tax at 1.04%
………… Mello Roos & Special Taxes
$225 ………… Homeowners Insurance at 0.3%
$0 ………… Private Mortgage Insurance
$120 ………… Homeowners Association Fees
============================================
$4,479 ………. Monthly Cash Outlays
($765) ………. Tax Savings
($1,075) ………. Equity Hidden in Payment
$230 ………….. Lost Income to Down Payment
$132 ………….. Maintenance and Replacement Reserves
============================================
$3,002 ………. Monthly Cost of Ownership
Cash Acquisition Demands
——————————————————————————
$10,499 ………… Furnishing and Move In at 1% + $1,500
$10,499 ………… Closing Costs at 1% + $1,500
$7,199 ………… Interest Points
$179,980 ………… Down Payment
============================================
$208,177 ………. Total Cash Costs
$46,000 ………. Emergency Cash Reserves
============================================
$254,177 ………. Total Savings Needed
——————————————————————————————————————————————-
This property is available for sale via the MLS.
Please contact Shevy Akason, #01836707
949.769.1599……
sales@ochousingnews.com…..
We're sorry, but it seems that we're having some problems loading MLS # P826501 from our database. Please check back soon.
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$1,300,000 471 South CANYON RIDGE Dr |
0.13 miles 5 bd / 4 ba 3,000 Sq. Ft. |
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$589,000 6351 East VIA ARBOLES |
0.2 miles 3 bd / 2.5 ba 2,573 Sq. Ft. |
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$469,900 411 South PASEO REAL |
0.22 miles 5 bd / 4.5 ba 2,381 Sq. Ft. |
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$535,000 6596 East CALLE DEL NORTE Ct |
0.38 miles 4 bd / 2.25 ba 2,112 Sq. Ft. |
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$569,000 131 South BAYBERRY Ct |
0.5 miles 4 bd / 2 ba 2,093 Sq. Ft. |
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$699,000 6164 East PASEO RIO VERDE |
0.61 miles 4 bd / 3 ba 2,878 Sq. Ft. |
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$595,000 7360 East CALLE DURANGO |
0.68 miles 4 bd / 2.25 ba 2,800 Sq. Ft. |
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$479,000 6110 East CANYON Ct #1 |
0.7 miles 4 bd / 3.5 ba 2,324 Sq. Ft. |
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$670,000 6421 East SHADY VALLEY Ln |
0.73 miles 5 bd / 2.75 ba 2,600 Sq. Ft. |
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$420,000 175 North PASEO RIO MORENO |
0.73 miles 3 bd / 2.25 ba 2,033 Sq. Ft. |
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Amend-extend-pretend is becoming more tenuous in the commercial market. Currently, $59 billion in loans are delinquent.
Trepp Reports CMBS Delinquencies Hit All-Time High
The delinquency rate for commercial mortgage-backed securities (CMBS) moved up 12 basis points in June to 10.16 percent, reaching an all-time high, according to a report from Trepp.
The delinquency rate includes loans 30 days delinquent or in foreclosure. In May, the rate surpassed 10 percent at 10.04 percent. A year ago, the delinquency rate was 9.37 percent and prior to breaking through the 10 percent barrier, the delinquency rate was 9.80 percent in April.
The percentage of loans seriously delinquent, or 60-plus days past due or in foreclosure, REO, or non-performing balloons, is at 9.73 percent. A year ago, the rate for seriously delinquent loans was 8.75 percent.
Trepp cited weak performance among lodging, office, and retail loans as reasons for the rise in the delinquency rate. However, the industrial segment showed improvement in June and multifamily loans remained unchanged for the month.
Late last year, Trepp predicted that the market could see an increase of 70 basis points in the short-term, and the rate has actually increased 64 basis points since late 2011.
There was one positive side to the report. Trepp stated that most five-year loans originated in 2007 were made in the first six months of that year, and so now that we are halfway into 2012, this means the number of five-year loans from 2007 are reaching their maturity dates and will fall off over the next six months.
“The soaring temperatures across the U.S. made for a very uncomfortable June in many places. With the level well over 10% now, the delinquency rate is equally uncomfortably high for CMBS investors. Driving the rate up has been the fact that only 28% of the loans from 2007 due to mature in 2012 managed to pay off in full. Just as the heat should break by September, investors should see some relief, too. Now that most of the 2007 loans coming due in 2012 have passed their maturity date, the delinquency rate should start to level off soon,” said Manus Clancy, senior managing director at Trepp.
Currently, $59 billion in loans are delinquent.
Based in New York, Trepp is a provider of information, analytics and technology to the CMBS, commercial real estate and banking markets.