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California has nation’s 2nd highest foreclosure rate
CA is still a hot bed of Foreclosure activity:
Modesto posted the nation’s third highest metro foreclosure rate. Other California cities in the top 10 were Merced at No. 4 (4.47 percent of housing units); Riverside-San Bernardino-Ontario at No. 5 (4.37 percent); Stockton at No. 6 (4.37 percent); and Vallejo-Fairfield at No. 9 (3.91 percent).
A total of 93,263 properties in the Los Angeles-Long Beach-Santa Ana metro area received a foreclosure filing in the first half of 2010, the second highest total of any metro area nationwide and 2.11 percent of all housing units (one in 47) — ranking No. 35 in terms of foreclosure rate.
Other metro areas with the 10 highest foreclosure totals were Phoenix-Mesa-Scottsdale (73,352), Riverside-San Bernardino-Ontario (63,717), Las Vegas-Paradise (53,525), Atlanta-Sandy Springs-Marietta (52,381), Detroit-Warren-Livonia (47,563), New York-Northern New Jersey-Long Island (44,522), and Orlando-Kissimmee (37,352).
Sacramento has the 14th highest foreclosure-filings-per-household rate among the more than 200 RealtyTrac reports on across the country. Sacramento’s foreclosure filing rate is about half the rate of Las Vegas’ rate, ranked at the top.
Sacramento’s rate is an improvement from the previous six-month period when the rate was 3.6 percent.
Report: 75% of Nation’s Top Metros Post Foreclosure Increases
More Foreclsoures -No big surprise…
RealtyTrac says it’s seeing early signs that foreclosures may have peaked in some hard-hit markets, but with three-quarters of the nation’s most populated metros showing continued increases, the numbers illustrate just how fragile the housing recovery really is.
According to the company’s Midyear 2010 Metropolitan Foreclosure Market Report, 154 of the 206 U.S. metro areas with a population of at least 200,000 posted year-over-year increases in foreclosure activity. Four states – Florida, California, Nevada and Arizona – accounted for all top 10 metro foreclosure rates.
“The fragile stability achieved in many local housing markets hinges on improvements in the underlying economy, specifically job growth,” said James J. Saccacio, RealtyTrac’s CEO. “If unemployment remains persistently high and foreclosure prevention efforts only delay the inevitable, then we could continue to see increased foreclosure activity and a corresponding weakness in home prices in many metro areas.”
Fewer U.S. small business owners expect revenues, cash flow, capital spending or hiring to increase over the next 12 months, according to a new survey done for Wells Fargo Bank by Gallup.
The lower expectations for business prospects contributed to a 17-point decline in July from April in the Wells Fargo-Gallup survey’s index of business owner confidence, finishing at -28, the lowest score since the survey’s inception more than seven years ago.
“Slower consumer spending growth appears to be weighing on small business confidence,” says Scott Anderson, Wells Fargo senior economist. “Small businesses are scaling back on hiring and capital spending plans in the third quarter and remain concerned about the overall financial health of their companies.”
New-home sales are down 16.7% compared with a year ago.
U.S. new home sales rebounded in June after falling to all-time low in May, the Commerce Department estimated Monday. The increase in new-home sales to a seasonally adjusted annual rate of 330,000 was well above the 316,000 pace expected by economists surveyed by MarketWatch. New-home sales in May fell a revised 36.7% in May to a record low 267,000 level compared with the previous estimate of a 32.7% fall to 300,000. New-home sales are down 16.7% compared with a year ago.
The months’ supply of homes on the market fell to 7.6 months in June from 9.6 months in May. Median sales prices have fallen 0.6% in the past year to $213,400
A foreclosure reduces the value of a home by an average 27%
Plse. note- prices are trending downward not up !
A much higher discount on Foreclosure homes than occurs with other types of forced sales, according to a recent study that will be published in the American Economic Review.
When a house is sold after the death of an owner, the price drops an average 5% to 7%, according to the study. When the owner declares bankruptcy, it falls 3%.
“It’s not surprising that there is a discount due to foreclosure,” Parag Pathak, a Massachusetts Institute of Technology economist and author of the report, said in a news release. “But it is surprising that it’s so large.
Also, the value of a home within about 250 feet of a foreclosure drops 1%, the study found. The study was based on 1.8 million home sales in Massachusetts from 1987 to 2009.
One reason foreclosures are so steeply discounted likely has to do with their condition; often, these homes are not maintained.
But even without visible deterioration, the discount on foreclosure homes can affect neighborhood prices, Pathak said. “A home-buyer’s benchmark [for a fair price] will usually include houses in the same neighborhood,” Pathak said, causing local values to drop even without signs of blight.
When it comes to mining money through mortgage fraud, California is part of the new gold rush, according to a new report Tuesday from CoreLogic (NYSE: CLGX), a Santa Ana-based provider of consumer, financial and property information and business services.
The report says that fraud risk in the mortgage industry has declined by 25 percent since it peaked in the third quarter of 2007 but that California, Florida, Georgia and the Carolinas lead the nation in mortgage crooks.
California seems to have a lock on having the most fraud involving home equity lines of credit, the report says.
“Lenders’ aggressive stance against fraud is having an impact. Our 2010 Fraud Index indicates that mortgage fraud risk is on the decline. But with an estimated $14 billion in fraud losses experienced in 2009 alone, fraud is still a major issue for the mortgage industry,” says Tim Grace, senior vice president of Fraud Analytics, CoreLogic.
Short sale volume from first quarter of 2008 through fourth quarter of 2009 increased by more than 300 percent.
Nearly one in every 200 short sales were deemed “very suspicious” by lenders, meaning there was a new sale transaction less than 60 days after the short sale and the sale price was more than 20 percent higher than the short sale price.
Bernanke: Fed ready to take more actions if needed
Yo Ben -How much lower than zero interest can we go ?
The Federal Reserve stands ready to take further actions if the U.S. economy slows significantly or falls back into recession, Fed Chairman Ben Bernanke told Congress on Wednesday. Bernanke did not elaborate on what further steps the Fed might take. The outlook is “unusually uncertain,” he said, adding that he expects moderate economic growth and low inflation. He said it would take some time before lost jobs would be regained.
Pete Fortunato in Northern California Full Day Workshop Aug.14 2010 Learn More....
Essential Short Sale Guide " A Must Read for any investor interested in Making Money in Short Sales." W.F. Sand Diego CA
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