The declining home prices in the Inland Empire is creating one of the most vibrant markets in America for a niche product no one wants to claim: REO houses.
In September, over 3,000 foreclosed homes were resold in Riverside County and almost 2,500 in neighboring San Bernardino County, with a 37% decline in home sales over Sept of 2007. According to Foreclosure Radar, foreclosure homes appear to be on the continual rise and the growing list of REO foreclosures on the market threatens to drive prices down even lower in the Inland Empire.
In Moreno Valley, for example, the median sales price for existing homes is down 48% over last year; Prices in parts of Victorville have fallen over 49% in the past year. These price declines threaten to create a cycle of decline that will force more homeowners into the oversaturated foreclosure market.
The Inland Empire housing market is declining at a rate that disproves conventional wisdom that housing prices rarely fall as rapidly as they rise. Below is a chart of the median sales price for existing homes in Riverside County over the past 9 years:
August 2000 - $162,000
August 2001 - $185,000
August 2002 - $215,000
August 2003 - $260,000
August 2004 - $334,000
August 2005 - $388,000
August 2006 - $420,000
August 2007 - $394,000
August 2008 - $247,000
The current price declines have been dramatic and are predicted to continue for some time.
Give us your thoughts? Do you think the market is close to bottoming out?
This BREAKING NEWS report just came in from Mortgage News Daily.
Freddie Mac just threw a life raft to the Short Sale market. The second-biggest provider of funding for U.S. residential mortgages, on Thursday said it is boosting incentives to mortgage servicing companies to help more borrowers renegotiate loans in an effort to curb rising delinquencies.
HMMMMMmmmm... Now, if I'm a lender and I just got DOUBLE the pay to help a borrower ... do you think that would motivate me a little more to complete a short sale?
I THINK SO!
What do you think about this? Comment at the bottom of this post.
Freddie Mac Doubles Financial Incentives to Servicers Who Help Borrowers Avoid Foreclosure Report Source: Mortgage News Daily
Freddie Mac today told mortgage servicers it was doubling the amount of money it pays for each workout that keeps a delinquent borrower with a Freddie Mac-owned mortgage out of foreclosure. Freddie Mac also announced it will start reimbursing servicers for the cost of door-to-door outreach programs, give servicers more time to negotiate workouts in states with fast foreclosure processes, and make administrative changes intended to streamline the workout process.
"We are taking these steps because we want to reinforce the tremendous importance of workouts and reward their use," said Freddie Mac Vice President of Servicing and Asset Management Ingrid Beckles. "Giving our servicers more time and greater compensation to help troubled borrowers is fundamental to preserving homeownership and maximizing our efforts to minimize foreclosures."
According to Beckles, starting August 1, 2008, compensation for repayment plans will rise from $250 to $500 while loan modification compensation will increase from $400 to $800. For short sales or pre-foreclosure sales, where Freddie Mac agrees to accept less than the full amount owed on a borrower's loan, compensation will go from $1,100 to $2,200. (The higher amount recognizes the greater servicer staff time involved when negotiating property sales.) Freddie Mac also said it will now reimburse the cost of leaving a door hanger up to $15 per mortgage and up to $50 per mortgage for a door knocking that results in the borrower contacting their servicer. Freddie Mac will also reimburse servicers up to $200 for additional fees paid to vendors for door knocking that results in successful alternatives to foreclosure. This policy is effective from August 1, 2008, through March 31, 2009.
To qualify for the reimbursement, the servicer must show that the mortgage was at least 90 days delinquent, the servicer had no prior contact with the borrower, and that the outreach was done by an independent third party vendor.
Freddie Mac also announced it is extending the time for foreclosures so servicers will have more time, if needed, to negotiate workouts with delinquent borrowers in Washington, DC, and 20 states with relatively fast foreclosure processes.
In addition to Washington, DC, the affected states include Alabama, Alaska, Arizona, Arkansas, California, Georgia, Hawaii, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Hampshire, North Carolina, Rhode Island, Tennessee, Texas, Virginia, West Virginia and Wyoming.
Specifically, starting August 1, 2008, servicers are allowed up to 300 days (10 months) from the due date of the last payment to the foreclosure sale in these states to seek aggressive and sustainable workout solutions for the borrowers and still meet the standards set in Freddie Mac's Servicer Performance Profiles. The company uses the Servicer Performance Profiles to measure and reward the quality of a servicers' investor reporting and default management.
Even though the laws in these states permit a lender to foreclose in less than 300 days, this announcement means Freddie Mac will permit its servicers more time to complete foreclosures. The new policy won't affect borrowers in states where the foreclosure process already exceeds 300 days.
Well??? What do you think?
The Department of Veterans Affairs (VA) is raising ceilings on its no-down payment home loans from the current $417,000 to as much as $729,000.
The increases are effective immediately under legislation recently enacted with President Bush signing the Housing and Economic Recovery Act of 2008.
That law also improved VA's Specially Adapted Housing Program. It raises primary grants from $50,000 to $60,000 toward constructing a new home or modifying an existing home to meet adaptive needs of veterans or active duty service members with certain service-connected disabilities.
The increased limits in the general home loan program for all veterans' home purchases or construction will be based on local housing costs, tied to the similar locality adjustments of the Federal Home Loan Mortgage Corp., Freddie Mac.
VA home loans are available for veterans to purchase or construct single-family homes, and to purchase condominiums or cooperative apartments. There are about 2.3 million existing VA home loans, more than 90 percent made with no down payment.
Source: Department of Veterans Affairs (08/21/2008)
Framed by magnificent mountain and foothill views, Shady Trails is one of the newer master-planned communities in North Fontana. You'll find long walking trails, parks complete with beautiful landscaping that will encouraging you to become active or simply relax and take in the view of the beautiful nearby mountains. The $56 million, state-of-the-art Summit High School is located right across the street from Shady Trails.
Residents here enjoy private resort-style recreation at The Parkhouse, a 15,000 sq. ft. recreation center that includes...
· A Jr. Olympic pool, spa, sun decks and shade arbor situated in a three-and-a-half acre park setting
· A 2,600 sq. ft. fully-equipped fitness center, game rooms, tennis courts, putting green
· A movie theater, library, modern business center with wireless internet access and cyber café.
· Victorian Gazebo, rose garden and open lawns
· Tot lot and sports courts
Nearby Fontana Park, the City of Fontana's new Community Sports Center, is quickly coming to life. This landmark Sports Park is planned to include a 45,000 sq. ft. Community Center, Aquatic Complex, full size public indoor Gymnasium, sport courts and much more.
There are several new retail and commercial opportunities developing nearby, including the Fontana Promenade, a Hilton Garden Inn, The Sierra San Antonio Medical Plaza, and a 93-acre auto center. Construction is underway on a 93,000-square-foot Fontana Library & Technology Center - a $45 million facility with museum, auditorium, coffee bar and more. As an added advantage, Shady Trails' freeway-close location allows for an efficient commute to employment and recreation in L.A., the Inland Empire and Orange County making Shady Trails a great residential destination.
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Welcome to Big Bear!
Big Bear-- Big Bear is a world of natural beauty, crisp, clean alpine air, and endless four-season recreation. High above the hustle of everyday life, Big Bear Lake provides the ideal getaway for day or for a long vacation.
An easy drive from virtually anywhere in Southern California, Big Bear Lake offers numerous recreational opportunities including boating, sailing, water skiing, fishing, hiking, camping, mountain biking, horseback riding, golfing, down hill and cross-country skiing, snowboarding, snow-shoeing, and more. Big Bear Lake is also host to numerous events throughout the year including Old Miner's Days, Oktoberfest, mountain bike racing, hobie cat regattas, jazz festivals, car shows, trout classics, rodeos, ski and snowboard competitions, and more.
Our City on the Internet - Best Big Bear Websites
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Today's real estate market has changed and so have I; I now successfully work for an Asset Management company in the preservation and sale of REO Properties in So. California’s Inland Empire.
This is not just another blah, blah Blog; I'm actually on a mission and this is a blog with a purpose. My interest in the REO real estate market has brought me here. However what I have found is that REO real estate is no secret and everyone wants to break in. I have also come to realize that this business is more than how much you know, it is very much a business of who you know. So how do you get to know the Players? Or get them to know You! By giving them the address to your REO blog and encouraging them to visit you . . . online!
Now that you're here, I'd like to take this opportunity to cordially invite you to grab a cup of coffee, sit back, relax and browse around to get a better idea of who I am and how we can be of service to each other. I've been a successful Realtor for over 15 years. I've never prided myself as being #1 because I've always given my Clients that position. I've never thought of my profession as a job. My professional designations, certifications and affiliations were all attained and maintained to better serve my clients and customers. I love what I do and strive to make sure that whatever I do reflects the experience and pride of a professional working at what they love.
Early on I knew that all successful relationships begin with give and take. So I originally began to design this blog as a Consumer Service in an effort to better educate and inform because it's often difficult to get relevant and up to date information on the buying, selling and refinancing process without being actively solicited. As this market has changed, so has my vision for this blog. As hard as it is for the consumer, is as hard as it is for the average professional to get relevant information on the default, foreclosure and REO process. I now strongly believe that building a dynamic professional knowledge based resource network will lend positively to our successful survival in today's emerging market. I'm hopeful that this blog can become an opportunity to share information, knowledge, and ideas on how to become more proficient and provide extensive marketing resources that help us all move properties quickly and more efficiently. That would be a win-win situation, don't you agree?
Thank You Active Rain for providing such a great forum to build this network on.
"I love Selling Real Estate; I love being a Realtor; and I love Our Community! Last, but not least, I love having the opportunity to be of Service to you.
Today's competitive REO real estate environment is no place for unskilled beginners. I realize that REO Sales Specialists/Asset Managers work hard to achieve the highest net recovery possible because today's Shareholders demand that foreclosed assets convert quickly back into working capital. They are looking to align themselves with aggressive real estate professionals that utilize creative and innovative marketing techniques to minimize credit losses and increase their company's profitability. My desire is to offer more than just knowledge of foreclosure real estate. I want to be a resource to both entry-level real estate agents and skilled REO specialists; I want to offer resources to find REO business, maintain the business, improve your technology, improve your sales in REO and elevate your level of REO professionalism. Through our collective expertise, it's time to help Elevate the Standards of the REO Profession through education, valuation and marketing.
"I wanted a place of my own...someplace I could call home without worrying about the rent going up or how noisy the neighbors would be, moving into the vacancy above me. I was ready for ROOTS. Mykel helped me find them. She showed me what I could afford, and some creative ways to afford it. I am now in my very own home for the first time ever! And as I look around, I am so happy to see my new couch in my new living room, the new big screen TV in my family room and my son playing in his own backyard. Now when I come home, I'm really Home. I can't say Thank You enough Mykel, for making it all possible!"
- V. Martinez
Mykel Martin? We were so lucky to have found her! She's enthusiastic, energetic, hardworking, extremely knowledgeable, honest, empathetic, resourceful, and an exceptional negotiator. She really enjoys her job. We just can't say enough good things about her!
The Henderson Family
Mykel's excitement and enthusiasm for her business made a great first impression on us. Her professionalism and level of knowledge has made a lasting impression. We would highly recommend her services to anyone looking to buy, sell or invest in real estate.
Mr. & Mrs. W. Cole
"We just wanted to express our appreciation to you for assisting us through a very difficult time. The thought of losing our home was devastating. Our mailbox was full of mail from Lenders, Attorneys and Real Estate Agents predicting all sorts of gloom and doom and making all sorts of empty promises. We quite honestly didn't know where to turn. There was something very different about your approach. You seemed genuinely interested in helping us and educating us to the various options that were available to us.
Your patience, knowledge and experience made all the difference in the world. Thank you for saving us from foreclosure. We only wish we had responded to you earlier. You were certainly a blessing in our lives at a time when we really needed one. They say you're supposed to pass a blessing on and we won't hesitate to refer you . . . Especially to anyone that might find themselves in our unfortunate situation."
Sincerely,
Mr. & Mrs. K. Smith
"How wonderful it must be to be a part of God's plan for so many families! Thanks again, Mykel for making this unpleasant process much easier and timely. I don't think we could have found a better Realtor than you. Your sensitivity, guidance and reassurance have helped us to clearly define a plan of action. We will definitely be calling on you to find us another home as soon as our financial picture clears up. Take care and God Bless You."
-The Roberson's
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