Home Mortgage Default Notices Move Up
home mortgage defaults
Over 100,000 homes were seized by lenders in September, a record number that may decline in coming months as major banks halt repossessions and review foreclosure practices.
MDA DataQuick said Tuesday there were nearly 83,300 default notices filed in California from July through September.
That’s down about 26 percent from about 111,700 during the same period in 2009.
The latest tally is up about 19 percent from almost 70,100 default notices filed from April through June.
It is sharply lower, however, than the peak of more than 135,400 notices filed when defaults peaked in the first quarter of 2009.
Nevada had the highest foreclosure filing rate for the 16th straight quarter. One in every 29 households got a notice, almost five times the national average. A total of 38,429 Nevada homes received filings, down 20 percent from a year earlier.
Arizona had the second-highest rate for the fifth straight quarter. One in 55 households, three times the national average, got a filing. Florida ranked third with one in 56 households and California was fourth at one in 70, RealtyTrac said.
San Diego Home Price Appreciation Eases
San Diego home prices
San Diego home prices slow down in August according to the S&P/Case-Shiller Home Price Indices. Annual growth rates slowed down in the three California cities, with Los Angeles, San Diego and San Francisco posting annual gains of +5.4%, +6.9% and +7.8%, respectively – a significant drop from the +7.5%, +9.3% and +11.2% reported for July.
Seventeen of the 20 cities and the Composites saw a weakening in year-over-year figures, as compared to July.
With August data, we find that 15 of the 20 MSAs and both Composites saw prices fall from their July values. Chicago, Detroit, Las Vegas, New York and Washington DC were the only five cities that recorded margina l improvements in home prices over July. The 10- and 20-City Composites were down 0.1% and 0.2%, respectively, in August versus July.
The table below summarizes the results for August 2010. The S&P/Case-Shiller Home Price Indices are revised for the 24 prior months, based on the receipt of additional source data.
| August 2010 | August/July | July/June | |||
| Metropolitan Area | Level | Change (%) | Change (%) | 1-Year Change (%) | |
| Atlanta | 109.09 | -0.8% | 0.3% | -2.0% | |
| Boston | 158.35 | -0.3% | 0.6% | 1.5% | |
| Charlotte | 116.60 | -0.4% | -0.2% | -3.4% | |
| Chicago | 126.70 | 0.4% | 1.0% | -2.9% | |
| Cleveland | 107.00 | -0.3% | 0.0% | -0.4% | |
| Dallas | 119.41 | -1.1% | -0.3% | -1.7% | |
| Denver | 128.57 | -0.1% | -0.4% | -1.2% | |
| Detroit | 71.54 | 0.5% | 1.6% | -0.1% | |
| Las Vegas | 101.03 | 0.1% | -0.8% | -4.5% | |
| Los Angeles | 175.55 | -0.4% | 0.3% | 5.4% | |
| Miami | 147.47 | -0.3% | 0.7% | -1.0% | |
| Minneapolis | 126.53 | -0.3% | 0.7% | 2.9% | |
| New York | 175.27 | 0.2% | 1.2% | 0.1% | |
| Phoenix | 108.84 | -1.3% | -0.6% | 0.4% | |
| Portland | 147.02 | -0.9% | -0.3% | -2.3% | |
| San Diego | 163.99 | -0.6% | 0.7% | 6.9% | |
| San Francisco | 142.83 | -0.3% | 0.5% | 7.8% | |
| Seattle | 145.93 | -0.8% | 0.1% | -2.4% | |
| Tampa | 137.53 | -0.5% | -0.2% | -4.1% | |
| Washington | 188.26 | 0.3% | 1.0% | 4.8% | |
| Composite-10 | 162.13 | -0.1% | 0.8% | 2.6% | |
| Composite-20 | 148.59 | -0.2% | 0.6% | 1.7% | |
| Source: Standard & Poor’s and Fiserv | |||||
| Data through August 2010 | |||||
California home foreclosures
Taxpayers Supporting Foolish Homeowners
San Diego housing
No rational private firm would bankroll the current mortgage market. Government propping merely means using coercion to extract money from renters and other taxpayers to support foolish homeowners who bought during bubble times and craven banks who didn’t man up, admit their insolvency, and close their doors.
Push down the price of housing and more Americans will actually qualify for a home-loan without blind support from the government. Home-purchasing is not a right in America. If you can’t afford to buy a house, rent!
Bank of America To Resume Foreclosures
bank foreclosures
Bank of America announced it reviewed its process for resubmission of foreclosure affidavits in the 23 judicial states with key stakeholders and has begun the process of preparing foreclosure affidavits for submission in 102,000 foreclosure actions in which judgment is pending.
Bank of America also said it will continue to delay foreclosure sales in the remaining 27 states, including California where the vast majority of foreclosures are non-judicial and conducted without a court order, until its review is complete on a state by state basis.
The bank anticipates that over the course of the temporary moratorium, less than 30,000 foreclosure sales will have been delayed.
El Cajon real estate
San Diego Home Sales Fall
San Diego home prices
Back on July 7th I posted “San Diego real estate 2010 2nd. Half Outlook … double-dips” where I predicted the San Diego real estate market was headed for a double dip. With yesterday’s report by MDA DataQuick, showing home sales in southern California fell 16 percent last month from a year ago, to reach their lowest level for that month since 2007. One should keep in mind September 2009 homes sales were also depressed. So, a 16% drop from last year is very telling. I believe my prediction of a San Diego double dip has unfortunately been fulfilled.
However, this same MDA DataQuick report showed median home price in Southern California rose nearly 8 percent last month from September 2009. What is really interesting about this is the fact that the San Diego home prices have been up month over month for most of 2010 and yet sales are falling!
Back on in 2005 I published “A Trend To Go National?” where I predicted the real estate sunami. At that time, I noticed even though month to month San Diego home prices were still rising, home sales number were falling. This is exactly the same situation we are now seeing in the San Diego housing market.
How can San Diego home prices continue to rise while home sales are off double digits?
Even during our seasonally peak home selling marking time from the spring through the summer, San Diego home sales fell once the government rebate ended.
Homeowners Get 50K From Gov Without Repayment
Government homeowners loan program
It seems every month or so there is a new government housing program to help troubled homeowners. So far, industry data suggests that all these programs have been dismal failures. Yet again, it appears the great minds in Washington think that if they offer free money to homeowners they will have a ‘successful’ program.
The Emergency Homeowners Loan Program which is scheduled to be in operation by the end of the year will offer the unemployed a no-interest 2 year government loan for up to $50,000, to pay their mortgage and cover the arrears. There are qualification requirements, a few of which are: the home must be the principal residence, the owner cannot own a second home, be at least three months behind in payments, have a reasonable likelihood of being able to resume payments within two years, have suffered at least a 15% drop in income, and able to afford the mortgage before the income loss.
So far, it sounds like a good idea to help the unemployed although the no-interest part of the loan is a little too generous. I think a low interest, CD-like rate, would be more realistic and be an incentive for early pay-back. However, the crazy part of this new government program is that if the homeowner stays in the house for five years, the loan will be forgiven!