Notice of Default

Notice of Default definition:

A notice of default is a notification given to a borrower stating that he or she has not made their payments by the predetermined deadline. It dictates that if the money owed (plus an additional legal fee) is not paid in a given time, the lender may choose to foreclose the borrower’s property. Any other people whom may be affected by the foreclosure may also receive a copy of the notification.

Dismal Job Market Drives Up Foreclosures

August 12, 2010 by  
Filed under Dismal Job Market Drives Up Foreclosures

An Astronomical Number of Repossessions is the Efficacy of a Difficult Job Market

The amount of foreclosures that we have seen in the month of July grew exponentially as the difficult job market has kept homeowners from making payments.   The banks have repossessed homes at a record pace, according to RealtyTrac.   This is the second highest month of repossessions to date.   RealtyTrac states that more than 1 million homes will be repossessed this year alone.   Unemployment is a huge factor contributing to the amount of  repossessions.
The number of properties that were taken over by banks hit roughly 92,858 in the month of July ALONE!!  This was just below the highest month which was May, amounting to 93,777 homes.

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Foreclosure activity has risen in the past month, taking into consideration notice of defaults, scheduled auction and repossessions.  In July action was forced on 325,229 properties, with one in every 397 housing units getting a foreclosure filing!!! Housing recovery!!?? I don’t think so…

Alan Greenspan: Double dip recession?

August 3, 2010 by  
Filed under Short Sale/Loan Modification Blog

Are we facing a double dip recession?

Greenspan predicts that a double dip recession is in the making.  People need to realize that the housing market is not set for growth and understand that their will be decrease in values.

It is important to remember the high unemployment rate, this constant increase of shadow inventory and increasingly  stringent mortgage underwriting standards will diminish any potential growth in the housing market for several years to come.  I am not pleased with the temporary fixes that they have done to “end the recession”.  I am sure that we will see another dip as these patchwork fixes don’t make for a long term solution.

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A copious amount of shadow inventory from the refi boom (circa 2002-2007)will need to be flushed from the system, in addition to the numbers added from the high unemployment rate. Even if mortgage rates drop to .5% this still will not be a fix if the majority of people won’t be able to qualify for these loans.

Home Ownership Hits 11 Year Low

August 2, 2010 by  
Filed under Home Ownership Hits 11 Year Low

Home Ownership Hits an 11 Year Low

Americans who own their own homes has dropped to an all time low since 1999.  The home ownership rate fell to 66.9% in the second quarter of 2010.  The number of vacant homes  fell in the second quarter, to 2.5%. Meanwhile, the vacancy rate in rental homes stayed steady at 10.6%.  What are your thoughts?

2011 Home Prices to Drop Below 2009 Values

What will 2011 home prices be?

This is the news that many homeowners have been dreading, yet it has seemed like it was inevitable.   Altos Research states, “home prices will continue to decline through the rest of 2010 and start 2011 slightly lower than 2009.

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The primary reason that we will be seeing a drop is due to shadow inventory, these are due to the homes that will be in default in the coming months.   Because we can’t estimate the number of homes that are in shadow inventory, it is difficult to say when the housing market will begin to recover.   Let’s hope to see some growth soon!

Housing Assist Coldwellbanker