These are highlights from an email I received recently from a RE professional in California. I thought the readership would find it interesting:
It seems like some banks are too swamped to even start the
foreclosure process, according to this article in our local (North Carolina) paper:
Housing: Banks waiting longer to foreclose
http://www.nctimes.com/articles/2008/08/30/business/zad421415c27f7dbb882574b3007c50a5.txt
I've
been negotiating about 20 REO sales over the past week. I
noticed a couple of things.
1. There is still
a good amount of demand, or as I like to call it "ability" to buy. I have had several of properties that had
multiple good offers submitted on them.
At least that helps us slow down the free fall.
2. Rents ratios
are getting close to making sense. Still
not right yet but close. Many of the
condos in the toughest markets are being pushed down to basically the
cost-per-door that they would have been if they were still part of a make-sense
apartment building.
3. My daughter is
attempting to buy in the San Fernando Valley area of Los Angeles and has had
just brutal competition in the under $400,000 range. One house she looked at for $380,000 had been
previously encumbered for over $600,000.
4. I spoke to 2
reporters this week and they were both sniffing out an angle on more of the
higher end markets and homeowners that were now facing foreclosure or walking
away from their houses. My REO research
department that does Broker Price Opinions (BPO’s) confirmed that they are
doing a lot more in the affluent area of San Diego County, places like La
Jolla, Carmel Valley and Encinitas. One
reporter was from a local source - Voice of San Diego, but the other was from
Bloomberg!.
5. Fannie Mae is
really pushing a financing program with PHH called Express Path Mortgage (aka
Insta Close). On qualifying properties
buyers can buy with 100% financing, no Mortgage Insurance.
Just over 700 FICO's and combined debt-to-income of no more than 40%
at competitive rates. Believe it or not,
they will even let investors buy with 100% financing (on selected
properties). My take on it is that they
would rather churn a non-performing asset into a performing asset. 100% investor loans are not available in CA, FL, NV or AZ
I found this article interesting about your local market,
I don't think they interviewed you
before writing it.
New York Housing Shines for now
http://money.cnn.com/2008/08/28/news/big.apple.fortune/index.htm?
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