Foreclosure and distressed property topics

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Trooper said:
Graphix,

Don't you ever sleep? Seriously though, thanks for the info. It doesn't appear as if anyone's buying these properties at auction.... that whole "depreciating asset" thing I guess.

Question: You commented on being careful about seemingly low purchase prices - because they may be the 2nd liens.

1. How would you conduct research to verify that you are bidding on a true 1st lien?

2. Does this mean that the distressed homebuyer is still paying the 1st?

3. Could the low amount be a tax lien / HOA lien? I only ask this, because I’ve seen some in Palm Springs REO under 10K. I couldn’t figure it out ! Thanks.
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County Records Research is the only foreclosure listing shop that I know of that has all of the loan information for a given property. They have all of the loans for a given property and show the which loan that is in default. Knowing which loan is in default makes a huge difference on strategy, outcome of a deal.

I am still getting up to speed on the nuances of purchsing foreclosure property but there's a good video on their site that explains why knowing the position of the defaulting loan is so important.

Hope this helps
 
I was checking the tax assessor in Miami-Dade, for something and discovered

a new category, called foreclosure statitstics. I don't know how long it's been there,

but I just found it. Has the number of foreclosures year by year and they are floating

up and down sorta randomly and then they spike for 2007, and the number of foreclosures

already in 08 for the first 6 month, is what it is for all of '07.
 
Was it bought back by the bank or an individual? What are the details (ex. sq. ft., # bed, # ba).

EvaLSeraphim said:
226 Tall Oak, 92603 got bought at the foreclosure auction yesterday morning for a little less than $400K.
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Anonymous said:
Was it bought back by the bank or an individual? What are the details (ex. sq. ft., # bed, # ba).

EvaLSeraphim said:
226 Tall Oak, 92603 got bought at the foreclosure auction yesterday morning for a little less than $400K.
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It was bought by a third party. The rest I don't know, but it is a condo.
 
EvaLSeraphim said:
226 Tall Oak, 92603 got bought at the foreclosure auction yesterday morning for a little less than $400K.
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It's an Ivy Wreath Plan C, last sold for $715,000 on 1/16/06.

3beds, 3.5baths, 1607sqft detached condo, 3 stories.

Mortgage History:

Mortgage Date: 03/11/2008..... 03/20/2006..... 03/13/2006..... 01/27/2006.....

Mortgage Amt: $100,000.......... $250,000......... $180,000......... $385,000.......

Mortgage Lender: ...................... Capstone Finl.. Countrywide.... Nbgi Inc

Mortgage Type: Private Party ...Conventional ..Conventional ...Conventional

Closest recent comps are 341 and 241 Tall Oak that closed at $591K and $585K on 7/17/08 and 5/29/08, respectively.

So long as nobody poured any cement mix down the sinks and toilets, that might be a good buy.
 
EvaLSeraphim said:
226 Tall Oak, 92603 got bought at the foreclosure auction yesterday morning for a little less than $400K.
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That is an absolute steal even if there are other liens like unpaid HOA dues and property taxes.

Btw, 329 Tall Oak sold for $688,800 on 7/11/08 (3bd/3ba 1,800sf) which is $383/sf (I'm a little shocked by that). That 226 Tall Oak unit had el cheapo appliances and ugly wood flooring.
 
Looks like the NOD pace has picked up again. Maybe all the loss mitigation types are done with their summer vacations and back at work now?! I see 39 NODs filed in Irvine since 8/1, so we are back over 5 per business day again...
 
A few snippets from the Foreclosure Radar July report:

CALIFORNIA FORECLOSURE SALES JUMP 22.5 PERCENT SINCE JUNE.
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Lenders take a record $12.55 Billion in loans to foreclosure auction.
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“Although the declines in Notices of Defaults seem promising, much of this can be explained by the actions of

just one lender,” said Sean O'Toole, founder of ForeclosureRadar. “Ninety-one percent of the decline in Notices

of Default since April can be attributed to Countrywide Financial. Unfortunately, this is more likely due to the

challenges of integrating two companies the size of Countrywide Financial and Bank of America, than it is a

fundamental shift in foreclosure activity.”
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Interesting stuff
 
There are a couple of reasons why the numbers are skewed for July:

1. The Countrywide/BofA merger.

2. California requires an additional 30 days before the lender files the NOD.

3. The failure of IndyCrap and the supposed halting of foreclosures from the FDIC. While this may be true, IndyCrap's name still showed up in county records through the whole month of July.

Anyway, be prepared for some bottom calling, but regardless the numbers are still freakin ugly and the August NODs are starting off on the wrong bull's foot. So here are my guesstimates for July with the MOM % first and YOY % second on a per day basis compared to DataQuick's previous numbers.

NODs: 2348 +2.9%/+52.8%

NTSs: 2165 +3.9%/NA

Foreclosures: 1359 +28.8%/+270%

It is interesting to go back and read my guesstimates from a year ago. But it is also fun to look back at Matt's blog from a year ago and read some of the comments. Like this gem on Impac. Sadly. Impac cites the reduction of staff as one of the main reasons why they can'tfile a timely 10Q.

Ah... how times have changed.
 
graphrix said:
There are a couple of reasons why the numbers are skewed for July:

1. The Countrywide/BofA merger.

2. California requires an additional 30 days before the lender files the NOD.

3. The failure of IndyCrap and the supposed halting of foreclosures from the FDIC. While this may be true, IndyCrap's name still showed up in county records through the whole month of July.

Anyway, be prepared for some bottom calling, but regardless the numbers are still freakin ugly and the August NODs are starting off on the wrong bull's foot. So here are my guesstimates for July with the MOM % first and YOY % second on a per day basis compared to DataQuick's previous numbers.

NODs: 2348 +2.9%/+52.8%

NTSs: 2165 +3.9%/NA

Foreclosures: 1359 +28.8%/+270%

It is interesting to go back and read my guesstimates from a year ago. But it is also fun to look back at Matt's blog from a year ago and read some of the comments. Like this gem on Impac. Sadly. Impac cites the reduction of staff as one of the main reasons why they can'tfile a timely 10Q.

Ah... how times have changed.
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The actual DQ numbers are in...

NODs 2320, margin of error 1.2%.

Foreclosures 1351, margin of error 0.6%.

Damn... I was good this month. If I am that good for next month, then nearly 3000 NODs and nearly 2000 foreclosures are highly possible. It looks like the sh*t storm is moving up from a category 4 to a category 5. Is there anything beyond category 5? Cuz... I am scared there might be.
 
I"m sure its like the Tour de France...Beyond Category.

The two questions I have:

1. Is the CW/BofA merger together enough to start processing the NODs/NTS again?

2. Is the worsening economy enough to force capitulation from all the former employees of lenders, etc in The OC who have been hanging on to their Alt-A financed properties by their fingernails for 8 months?
 
ipoplaya said:
Looks like the NOD pace has picked up again. Maybe all the loss mitigation types are done with their summer vacations and back at work now?! I see 39 NODs filed in Irvine since 8/1, so we are back over 5 per business day again...
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Irvine is running at 5.4 NODs per business day through the 18th per realtytrac.com. On pace for cresting over 100 for the month, which is in worst-ever type territory for Irvine I believe...
 
Just checked August NODs for Irvine. I counted 124 filed, although some are dupes on the same property, for an average of 5.9 per business day. I think that is the most I have seen in Irvine for any particular month...
 
The NODs for September have fallen off a cliff. But... don't get too excited, it is because of a bill that recently passed. Matt Padilla reported on it here.

The bill is SB1137, which Gov. Schwarzenegger signed July 8 and the foreclosure provision of the bill became law earlier this month. It calls for lenders or loan services to contact homeowners at least 30 days before filing a notice of default, the first stage of foreclosure. The bill says lenders should let borrowers know of their options to avoid foreclosure.

All this is doing is delaying the process for this month. October will most likely see a huge increase. What was sad was the fact that the lenders knew this was coming. In the last few days of August they filed about double the amount of NODs than normal. Foreclosures however still remain at record levels, and this bill will only delay the inevitable.

I will have some numbers later this week, and I got too busy to post last months numbers, but I have them and I will post them later too.
 
Per Realtytrac, there are 77 NODs for Irvine for September through last week... Right around 4 per business day so two-thirds the pace of August NODs for the city.
 
graphrix said:
The NODs for September have fallen off a cliff. But... don't get too excited, it is because of a bill that recently passed. Matt Padilla reported on it here.

The bill is SB1137, which Gov. Schwarzenegger signed July 8 and the foreclosure provision of the bill became law earlier this month. It calls for lenders or loan services to contact homeowners at least 30 days before filing a notice of default, the first stage of foreclosure. The bill says lenders should let borrowers know of their options to avoid foreclosure.

All this is doing is delaying the process for this month. October will most likely see a huge increase. What was sad was the fact that the lenders knew this was coming. In the last few days of August they filed about double the amount of NODs than normal. Foreclosures however still remain at record levels, and this bill will only delay the inevitable.

I will have some numbers later this week, and I got too busy to post last months numbers, but I have them and I will post them later too.
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RealtyTrac is only showing a total of 9 NODs filed on Irvine properties for the month of October. I'd expect volume to shoot up at some point in October on NODS as lenders have had their 30 days to make contact with borrowers.
 
The proportion of bank-owned properties is beginning to bolster.

Here's the Irvine visual... still looking to find out how to download the rest of the info effectively.

irvineforeclosures1021.JPG
 
IrvineRealtor said:
The proportion of bank-owned properties is beginning to bolster.

Here's the Irvine visual... still looking to find out how to download the rest of the info effectively.

irvineforeclosures1021.JPG
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Can you remind me what is A, P, and B.

I assume B is bank-owned, but not sure for the others...

Also, is there any way you can get Newport Beach, mainly Newport Coast?

Thanks a lot!
 
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