Strategic Default Home Foreclosure Video
Below is a home foreclosure video on strategic default. The information is true. But, agree or disagree, the message is hard-hitting.
San Diego Real Estate 2010 Forecast
San Diego Real Estate 2010 Forecast
The year of the strategic mortgage default
2010 real estate outlook
It would be easy to write a 2010 real estate forecast by repeating the industry line that “the new year will mark a turnaround for real estate values; those who act fast will be able to get the best buys.” Real world facts, at least in San Diego, seem to indicate otherwise.
There are reasons why another, more vicious, down-leg may be in store for the San Diego real estate market in 2010. Remember, many of the adjustable home loans were designed with five and seven year interest adjustments. The top of the San Diego real estate market occurred in the summer of 2005, so a huge number of loans are set to adjust next year. The saving grace is that interest rates are near all-time lows and interest rate shock will not be a negative factor. The downbeat with these mortgage adjustments will be the ‘reality check’ factor. How many homeowners will suddenly wake up to the fact that their home is now worth tens of thousands of dollars less than their mortgage balance? Only the naive will believe that their San Diego home’s value will snap back soon.
A study by researchers at Northwestern University of Chicago found that as many as one in four defaults may be strategic. Driving this phenomenon is the rising number of households that are deeply “under water,” owing much more than the current value of their homes. First American CoreLogic, a real-estate information company, estimates that 5.3 million U.S. households have mortgage balances at least 20% higher than their homes’ value, and 2.2 million of those households are at least 50% under water. The problem is most severe in Arizona, California, Florida, Michigan and Nevada.
The 12 Months Of Home Default
Excellent home default video. This is really funny, but, also very sad, because it’s so true. On June 6,2009 I published a post titled: New California Law Offers Free Living for Many Homeowners which noted how California has made the mortgage problem worse by more than doubling the time it takes to foreclose a home in California.
San Jose California real estate
San Diego Home Sales and Home Values Improving
San Diego home sales
Both San Diego home sales and home values are improving according to La Jolla- based MDA DataQuick. Home sales in San Diego County rose by 17.8 percent in November, compared to the same month a year ago, while prices rose by 6.6 percent.
A total of 3,148 homes sold in November, up from 2,673 for November 2008, while the median price of a home in San Diego County last month was $325,000, up from $305,000 in the same month a year ago.
Sorrento Valley California real estate
Florida Number 1 In Foreclosures
San Diego home
According to a national report released by RealtyTrac, Florida edged out California for the second place in the national foreclosure rate, lagging behind only Nevada in the percentage of home mortgages in default. Florida’s November figure was 7.6 percent higher than November 2008 and 2.0 percent higher than October 2009. One out of every 165 homes was in some stage of foreclosure proceedings.
Nationally, 306,627 homes, one out of every 447 homes, were in foreclosure, up 18.4 percent from November 2008. But the national rate represented the fourth straight month of national declines. James Saccacio, RealtyTrac chief executive, credited the drop to loan modification efforts and an extension of the federal first-time homebuyer program. But long-term stability may be more elusive as the industry recovers from its worst slump in decades.
With 52,935 Florida properties receiving foreclosure statements, reversing a two-month trend of fewer defaults than the previous month. Two Florida cities were among the top 10 metro areas in the nation. Cape Coral/Fort Myers held the 4th spot with one out of every 96 homes in foreclosures while Orlando/Kissimmee ranked 8th with one in every 120 homes in default.
Fallbrook California real estate
Why Defaulting On Your Mortgage May Be Best
housing market
In an academic paper titled, “Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis,” written by Brent White, a law school professor at the University of Arizona argues that those who are underwater in their loans should just leave.
By leaving, it could potentially save them thousands and it won’t be long until they recuperate themselves. Defaulting “strategically” can pull more walkaways by buying all the major items they may need in the near future such as a car or even a house right before you take a hike. As long as you stay current with other mortgage lenders, one could potentially have a good credit standing in 2 years.
Also, many believe that signing a contract with your mortgage is for life, but contrary to popular belief, mortgage lenders have either no legal rights or limited rights to pursue walkaways.