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Monique Carrabba - The Carrabba Group's Blog

By Monique & Joe Carrabba | Agent in Los Angeles, CA
  • Foreclosure Filings are Down as the Time to Foreclosure Speeds Up In Some States

    Posted Under: Home Buying in Los Angeles, Home Selling in Los Angeles, Foreclosure in Los Angeles  |  July 13, 2011 2:47 PM  |  1,204 views  |  1 comment

    On average it took less Time to Foreclose in California, Arizona and Nevada in June 2011, countering what has been a growing trend to extend the foreclosure process. The time to foreclose has increased on a year-over-year basis throughout our coverage area, with the largest increase seen in Nevada where it now takes on average 319 days to foreclose, up from 239 days a year ago. California saw the second most significant increase with the average time to foreclose at 317 days, up from 261 days a year ago. The least change was observed in Washington where the average time to foreclose is 106 days, only slightly higher than the 105 days seen a year ago.

    Foreclosure filing activity was down throughout our coverage area in June 2011, with fewer foreclosure filings in all states. There were fewer foreclosure sales, both Back to Bank and Sold to 3rd Parties everywhere except Oregon which saw an uptick in activity at the courthouse steps.

    "While the decrease in the time to foreclose last month is statistically interesting," says Sean O'Toole, CEO and Founder of ForeclosureRadar, "We do not see it as signaling an end to lenders looking to avoid losses that they can't afford by continuing the extend and pretend policies of the past."

    California saw slowed foreclosure activity across the board. Notice of Default filings fell for the third consecutive month after a slight 1.5 percent drop in June. Notice of Trustee Sale filings were down in June as well, with an 11.7 percent decline month-over-month and a 34.3 percent drop from June 2010. Cancellations of foreclosure sales decreased for the second time in as many months, with a 3.0 percent drop compared to May. Foreclosure sales on the courthouse steps were slower than the prior month, with 13.4 percent fewer sales Back to Bank and 7.1 percent fewer foreclosed properties Sold to 3rd Parties. For the first time in six months the average time to foreclose decreased, down 7.9 percent to 317 days month-over-month but remained up 21.5 percent as compared to this time last year. Third parties continued to resell inventory more quickly, with the time to resell down 1.5 percent month-over-month to 131 days, clearly outperforming banks, which took an average of one hundred days longer at 231 days to resell inventory (REO).

    Data courtesy of Foreclosure Radar

    Monique Carrabba
    The Carrabba Group
    Keller Williams Hollywood Hills
    P: (323) 899-2900
    mcarrabba@kw.com
    www.TheCarrabbaGroup.com

  • Foreclosure Moratorium Facts (real time)

    Posted Under: Home Buying in Los Angeles, Home Selling in Los Angeles, Foreclosure in Los Angeles  |  October 13, 2010 5:27 PM  |  519 views  |  No comments

    No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide.  What does this mean for the short sale market?  Will this delay help short sales or contribute to the already increasing mentality of distressed borrowers to simply wait it out before reaching out to their servicer or a real estate agent for help?

    While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have. (sourced from N.A.R. - Realtor.org)

    In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes. 

    The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include:  Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
    These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process.  This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
    This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government (yet).
    Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties.  Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
    The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term.  The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
    Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
    Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes. 
    The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.
    Some industry insiders believe this was a calculated effort to forestall foreclosures through the holidays and the end of the year.  Then it will be business as usual after.  If that is true, this would be the third year in a row that some type of moratorium has delayed foreclosures at the end of the year.  The problem is, the water cooler conversations going on nationally are bound to cause more homeowners to sit on the fence as the government, servicers, investors, and attorneys duke it out.

    As far as I am concerned, it is yet more confirmation that short sales will move to the forefront of foreclosure relief options - especially with loan modification re-default rates rising.  What say you???????????????

    Monique Carrabba
    The Carrabba Group
    Keller Williams Hollywood Hills
    P: (323) 899-2900
    mcarrabba@kw.com
    www.TheCarrabbaGroup.com

  • Foreclosure, Short Sale, REO? What they are explained.

    Posted Under: Home Buying in Los Angeles, Home Selling in Los Angeles, Foreclosure in Los Angeles  |  September 21, 2010 1:46 PM  |  499 views  |  No comments

    In Los Angeles, I have had many people ask me: “So I would like to buy a foreclosure.” No one really wants to buy a short sale but usually when someone says they want to buy a foreclosure that’s what they mean.

    Here is a quick cheat sheet for all of you foreclosure buyers.

    The first thing that usually happens to a homeowner is they can’t pay their mortgage. This triggers a Notice of Default. The lender notifies the homeowner that they need to become current in their loan or risk the sale of their property at a foreclosure auction. If the homeowner doesn’t become current on their loan the lender will than file a “Notice of Sale”. This is the date the property will be for sale at the courthouse steps. Before this occurs the homeowner may want to do a short sale. This means that they sell the property to someone by listing it with a Realtor for less than what is owed to the lender. This process can postpone the process if the bank receives an offer. Sometimes the lender will choose to foreclose.

    Short Sale, Notice of Sale and Notice of Default:
    What happens in a short sale is once the homeowner gets an offer the realtor will present a short sale package to the lender showing a hardship. The 1st mortgage holder will decide how much they will accept based on a broker’s price opinion or appraisal. This process can take 1 month to 10 months. It depends on the lender but also the homeowner’s willingness to complete the required paperwork. What is great about a short sale is this: let’s say you owe $600,000 on a property. If it forecloses, your credit is affected much worse than a short sale. With a short sale the lender may decide to forgive you all of the debt by stating the debt was satisfied for less than owed or state that that you may have to pay back some of the shortfall. But with a foreclosure you can be left with a damaging mark on your credit and be responsible for the entire amount the property forecloses for (less what it’s sold for as an REO). During the short sale process, when a property is in the Notice of Default State (NOD or NOS) phase it is a pre-foreclosure.

    Foreclosure:
    If you are unable to sell your home before the day it goes to auction at the courthouse steps, it is called a foreclosure. Many times there is a minimum opening bid. This can be the 1st position lender or the 2nd loan (such as a HELOC). To bid on the property is risky. You must have all cash. You don’t have an option to view the property prior to the sale and you risk taking on other liens such as tax liens, unpaid property taxes and other loans. This is not for the average investor and takes much research and lots of cash. Sometimes you may see a property online for sale in Beverly Hills for $45,000. This is usually just one of the many liens. Go to the courthouse and you could purchase that lien and end up with a $2 million loan in first position. This is risky and I don’t recommend it.

    REO (Real Estate Owned):
    If a property isn’t purchased at the foreclosure sale, the bank will become the owner. This is called Lender Owned or REO. It may take a month to a year for the property to be relisted. 99.9% of the time it will be listed with another Realtor so feel free to have your own agent find you these deals. The prices are competitive but usually the competition is still and the bank will not allow the usual seller paid fees on these transactions.  Both REOs and short sales can be great deals. I have sold many of them. Just be patient because many of them will have multiple offers and often the buyer with the accepted offer is unable to perform. With interest rates at record lows there are many deals out there but when there is a good deal everyone else will know it’s out there too. So make sure you have an experienced agent working with you to get you the deal you desire.

    Monique Carrabba
    The Carrabba Group
    Keller Williams Hollywood Hills
    P: (323) 899-2900
    mcarrabba@kw.com
    www.TheCarrabbaGroup.com

 
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