The national numbers are clouding the fact the the number of foreclosures is actually declining in many parts of the country. "Jay Brinkmann, MBA's chief economist and senior vice president for research and economics. Increases in foreclosures seen in California and Florida overshadow improvements seen in states including Texas, Massachusetts and Maryland, he said." (via MarketWatch.com) Amazingly, California and Florida account for almost 40% of all foreclosures nationwide. If you remove those states you find states where improvement in the declines are starting to show. Maryland showed improvements as well as Michigan and other states.
Heres the Catch
According to the Mortgage Banking Association, its seems that these foreclosure rates are being driven by housing related issues. High prices and unqualified buyers without enough at the margins to withstand a downturn without losing their homes. Now the mortgage problem is working its way through the entire financial services industry. First the banks, then the investement banks and now the insurers. The loss of jobs from these mergers and break ups will be staggering. We could we see another wave of foreclosures due to economic rather than housing related issues. I would think the hardest hit areas would be the large financial centers of the Northeast. I wonder if this will significantly harm Fabled San Francisco. As the financial center of the west, we could expect to see some loss there too. Any thoughts?
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Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
Trade talk for the San Francisco real estate industry.
Your source for property management tips, policies and market trends.
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With option pays, borrowers have four separate payment choices every single month. Yes one month you can choose to pay interest and principle and another month partial interest, in case you wanted to live above your means. hmmm...how many did that do you think The option arm mortgage adjusts frequently, every few months or even every month, based on the London Interbank Rate (LIBOR) plus a little for the lender
Used as a 30/15 Year Fixed
A payment based on a 30 year amortization table, if made every month, will pay off the mortgage, in 30 years of course. You could treat this as a 15 year mortgage as well. Interest Only Payment The principal balance remains unchanged after the payment is applied.
Negative Amortization
A partial interest payment where part of the interest is deferred and added to the principal balance. This is negative amortization. Your mortgage balance is actually increasing, not being paid down
Here is a chart from Credit Suisse showing us that the increase from the orignal teaser rates are just in front of us. Pay Option Mortgages.
Billions in total Pay Option ARMs outstanding, 60% issued in California reseting in 2010 and 2011.
Another Tsunami
This is the second wave of foreclosures and home auctions that the resets trigger beginnig mid to late 2009 into 2010-2011. I If you have one of these and want some reliable info, go to the Federal reserve board and pick up this pamphlet. The reason why WAMU is on the ropes and why Country Wide failed is because the 2003 - 2004 pay option arm loans are recasting and then going 90 days late. But all you need to know is pay option arm loans have a teaser payment that will last until the loan goes 110%-125% of original value and then the loan recasts to a fully amortizing loan.Im afraid to look...
Thanks for Reading
Howard Bell
A web site of over 450 articles related to real estate focused primarily on property management.
http://yourpropertypath.blogspot.com/
Trade talk for the San Francisco real estate industry.
Your source for property management tips, policies and market trends.
Your Property Path Amazon Store
http://astore.amazon.com/yourpropertypath20-20
super deals on agent open house tools
We hand picked Amazon for the tools you need
Owners Want to Add 5700 Units to Park Merced.
The Pro's
1. Over a 20 year period, new development would take the 115-acre property off the grid using efficient appliances, wind turbines and co-generation techniques to capture heat loss to reduce energy consumption by 60%
2. Slash water consumption by 40% by improved plumbing such as low flow toilets and grey water irrigation to reduce water consumption.
3. Reduce car usage by re-routing and bringing the M line into the community and a Bart shuttle, probably using bio-fuels.
4. Organic Farm: Thats right, a plan for an organic farm in the complex along with bycicle paths and green walking areas connected to SFSU campus.
5. Rent Control: The existing tenants will be moved into new spaces at the same rent rate and rent control would be enforced for existing tenants.
The Con's
Affordability: Open space reduces density and makes for a wonderful life style flys in the face of affordability. For that you need to have density.
*Special thanks for the photo to the western neighborhoods project
Thanks for Reading
Howard Bell
www.yourpropertypath.com
A web site of over 450 articles related to real estate focused primarily on property management.
Your Property PathSF
A blog for San Francisco owners and managers of real property
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| January 1 | Lien date – taxes for the next fiscal year attach as a lien on the property. The assessment of property applies as of 12:01 a.m. on the first day of January of each year. |
| February 15 | Deadline to file a claim for most exemptions. |
| April 1 | Deadline for filing Business Personal Property and Vessel Property Statements. |
| April 10 | Property tax due - last day to pay second installment of secured property taxes without penalty. |
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| July 2 through September 15 | Period to file an assessment appeal application with the Assessment Appeals Board (for assessments dated January 1 – July 1). |
| August 31 | Property tax due - last day to pay business personal property taxes before penalties are added. |
| December 10 | Property tax due - last day to pay first installment of secured property taxes without penalty. |
| Variable | Appeals of Supplemental Assessment Notices must be filed with the Assessment Appeals Board within 60 days of the notice date. Exemptions claims for Supplemental Assessments must be filed with the Assessor-Recorder within 30 days of the notice. |
Thanks for Reading
Howard
A 450 page real estate resource focused primarily on property management.
A blog for San FRancisco, trade talk and more for owners and managers
Howard is a property manager and leasing agent in San Francisco. If you are considering leasing or management services in San Francisco you can reach him at foundhoward@gmail.com
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