San Diego Home Mortgage Lenders … Hardball or Common Sense?
It's a shame, but in today's San Diego real estate environment, home lenders have taken on the personification of evil. It seems we are always hearing about San Diego banks or home mortgage lenders who do not want to work with homeowners in trouble.
Though this may have held some validity a year or two ago, it is just the opposite today. Effective July 1, 2008, a new California law mandates that the lenders try to contact and work with homeowners prior to filing a notice of default. This requirement adds about an additional 30 days before a notice of default can be filed. From the notice of default date, there is a 90 day period at the end of which is a twenty-one day advertising period. Only after this advertising of the pending foreclosure, can the actual sale or transfer of deed occur.
So with all this time, why do we still hear ‘evil lender' stories? Perhaps one reason is that many San Diego homeowners owe more than their homes are worth. They are under the misconception that they can give the deed back to the lender, avoid foreclosure and perhaps receive a less severe credit rating ding. The problem arises when there are junior liens on the property. These junior liens can be anything from an equity line to a personal loan secured by the home.
A lender may not want to take a deed in lieu of foreclosure because taking title in this manner does not extinguish any junior liens. However, a foreclosure by a senior lien holder essentially wipes out all junior liens.
Also, a borrower cannot simply transfer title to the lender without the lender's permission. Because some lenders have refused to negotiate and accept the deed in lieu of foreclosure, some creative homeowners have quitclaimed the property to the lender anyway, and have recorded the instrument without the lender's permission.
In 1993, the California legislature passed a statute to protect lenders from involuntary (and invalid) transfers of real property to the lender. The lender must record a "notice of nonacceptance of a recorded deed" in the county where the real property is located. Redelivering a grant of the real property back to the original homeowner (e.g., borrower) does not legally retransfer the title. (Cal. Civ. Code § 1058.5.)
California Home Foreclosure Filings fall 32%
San Diego Real Esate Sales Increase
San Diego Condominium Sales Price Appreciation
#1 Key To Purchasing Real Estate in the San Diego Market
San Diego California Home Sellers Lose Big
The San Diego California Real Estate Great Depression
1.2 Million Homes in Foreclosure
Survey Says Home Values Must Fall Another 14%
A Record Number of Homeowners Avoid Foreclosure in the Second Quarter
Jumbo Financing and the Impact on The San Diego Real Estate Market
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California Home Foreclosure Filings fall 32%
California home foreclosures – In a report issued today by California-based research group RealtyTrac it was reported that California home foreclosure filings fell 32 percent on a monthly basis but were up 36 percent from a year ago. California remained the third hardest-hit state in the collapsed real estate sector, after Nevada and Florida.
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James Saccacio, RealtyTrac chief executive, said: "Much of the 12 percent decrease in September can be attributed to changes in state laws that have at least temporarily slowed down the pace at which lenders are moving forward with foreclosures."
Some prior posts on home foreclosures:
San Diego Real Esate Sales Increase
San Diego Condominium Sales Price Appreciation
#1 Key To Purchasing Real Estate in the San Diego Market
San Diego California Home Sellers Lose Big
The San Diego California Real Estate Great Depression
1.2 Million Homes in Foreclosure
Survey Says Home Values Must Fall Another 14%
A Record Number of Homeowners Avoid Foreclosure in the Second Quarter
Jumbo Financing and the Impact on The San Diego Real Estate Market
Home Builders Pushed 100% Loans to Move Properties
San Diego County Foreclosures up 125% from 2007
CALIFORNIA HOME FORECLOSURE SALES JUMP 22.5%
Credit Impact of Real Estate Short Sales & Deeds In Lieu
1.2 Million Homes in Foreclosure
Last Friday Mortgage Bankers Association (MBA) issued a report showing a record 1.2 million homes were in foreclosure during the second quarter of 2008. This was 2.8% of all outstanding loans, and double the same period last year.
During the three months ended June 30, 2.9 million homeowners, or 6.4%, were behind on their payments, up more than 25% from last year.
Jay Brinkmann, MBA's Chief Economist said: "The national foreclosure numbers continue to be driven by the hardest hit states that are continuing to get much worse. The increases in foreclosures in California and Florida overwhelmed improvements in states like Texas, Massachusetts and Maryland."
California and Florida accounted for 39% of all foreclosures started during the quarter.
A few of of our past posts on home foreclosures:
Survey Says Home Values Must Fall Another 14%
A Record Number of Homeowners Avoid Foreclosure in the Second Quarter
Jumbo Financing and the Impact on The San Diego Real Estate Market
Home Builders Pushed 100% Loans to Move Properties
San Diego County Foreclosures up 125% from 2007
CALIFORNIA HOME FORECLOSURE SALES JUMP 22.5%
Credit Impact of Real Estate Short Sales & Deeds In Lieu
California foreclosure increases tell us that the worst is still ahead
From a report issued yesterday, by ForeclosureRadar: “We expected a significant increase in auction sales based on previous default patterns” said Sean O'Toole,founder of ForeclosureRadar. “Unfortunately, the continued increases in defaults tell us that the worst is still ahead. It is time for lenders to accept this reality, and start approving short sales rather than forcing more thantwo-thirds of troubled homeowners through the entire foreclosure process.” San Diego County California for sale by owner real estate
California Lenders Took Back 22,324 Properties In April
Lenders added 22,324 properties to their real estate owned or “REO” inventory in April. Last month DataQuick reported that 38.4% of all home sales in California were from this REO inventory, equaling approximately9,432 properties. Based on those levels, lenders are increasing REO inventories 1.36 times faster than they areable to resell them. San Diego for sale by owner real estate
California Foreclosure Auction Sales Show 40-50% Discounts From Prior Sales
From a recent report by ForeclosureRadar it was show that: In April, it took California lenders an average of 140 days from Notice of Default to the property being sold at auction.
Average discounts at auction were 25%, but nearly half of all properties taken to auction offered discounts of 30% or more from the current loan balance. The majority of these loans were 80% LTV first mortgages, making discounts of 40 to 50% from the prior sales price common in many parts of the state.The largest discounts offered in major Southern California counties were in Santa Barbara (29 percent) and Riverside (28 percent). The smallest were Los Angeles (19 percent) and Orange (21 percent). The spread waswider in Northern California, with Merced offering the states larges discounts (37 percent), and San Franciscothe smallest (12 percent).
In a sign that foreclosures are affecting every part of the state, foreclosure sales nearly doubled in both Marin County (96 percent increase), and Orange County (up 82 percent). San Diego County California Realtors