Today’s News Synopsis:
The California Association of Realtors reports that fewer than 60% of short sales close in California. Approximately 23.1% of all mortgaged homes were underwater in the 4th quarter of 2010, according to CoreLogic. Keefe, Bruyette & Woods does not expect prepayment activity to increase over the next 18 months.
In The News:
CAR – “C.A.R. Short Sale Lender Satisfaction Survey” (3-8-11)
“Fewer than three of five short sales close in California, illustrating the complexity and difficulty of navigating lenders’ and servicers’ short sale procedures, according to a Short Sale Lender Satisfaction Survey conducted by the CALIFORNIA ASSOCIATION OF REALTORS®”
San Francisco Chronicle – “Underwater mortgages rise as home prices fall” (3-8-11)
“About 11.1 million households, or 23.1 percent of all mortgaged homes, were underwater in the October-December quarter, according to report released Tuesday by housing data firm CoreLogic. That’s up from 22.5 percent, or 10.8 million households, in the July-September quarter.”
Housing Wire – “Moody’s finds MERS fire at little risk of spreading” (3-8-11)
“MERS is reportedly listed as the owner of record and nominee for the lender on more than 50% of outstanding mortgage in the U.S.”
Housing Wire – “BofA doubles default servicing staff, opening centers across the nation” (3-8-11)
“Bank of America (BAC: 14.69 +4.70%) doubled its staff to assist financially distressed homeowners, opened two regional customer assistance centers and plans to open four more.”
Housing Wire – “KBW: Prepayment speeds unlikely to rise over next 12-18 months” (3-8-11)
“Prepayment activity is unlikely to increase over the next year to 18 months, as long as mortgage rates hover around 5%, according to one financial services investment bank. Keefe, Bruyette & Woods said while mortgage rates remain low, they have increased meaningfully since the middle of November while refinance activity dropped sharply during this period.”
Orange County Register – “O.C. judge: Banks rush to foreclose, make errors” (3-8-11)
“An Orange County Superior Court judge who initiated a ‘foreclosure relief’ program that appears to be unique to California courts says that many banks have not been mediating in good faith with troubled borrowers to work out solutions and instead have rushed to repossess homes.”
One year ago, multifamily home building was expected to become more expensive in San Diego, as a new water meter program gained popularity. One in every 25 Los Angeles homes received a notice of foreclosure in 2009. Silicon Valley Bank forecasted an increase in foreclosures in Napa Valley.
For more information about The Norris Group’s California hard money loans or our California Trust Deed investments, visit the website or call our office at 951-780-5856 for more information. For upcoming California real estate investor training and events, visit The Norris Group website and our California investor calendar. You’ll also find our award-winning real estate radio show on KTIE 590am at 6pm on Saturdays or you can listen to over 170 podcasts in our free investor radio archive.