Peter Westbrook - Stockton Real Estate Westbrook REI Stockton CA Tulsa OK

While high Foreclosure rates still permeate all aspects of the American economy and specifically the housing market, Stockton Real Estate has been hit especially hard, driving prices to new lows leaving homeowners to wonder when the madness will stop.

The Stockton Real Estate market has been one of the worst hit by record numbers of foreclosures. While many predicted that those numbers would peak by 2010, we still have not hit bottom. Real Estate prices continue to fall and neighborhoods feel the blight of vacant and boarded up houses.

Believe it or not, the devastation of Forclosure is as bad as any natural disaster as it affects every Stockton homeowners daily life in ways that should not be surprising.

If Homeownership is the bedrock of the American Dream, then you begin to see just how devastating just the threat of a foreclosure can be on a American psyche. Too most people it means a failure in attaining and holding onto what is an American right. Even if you are not going through a Foreclosure personally, the odds are that either know a family member or friend that has gone through or is currently going through the process and its devastating effects.

While Foreclosures have always been a part of the American Homeownership landscape they have never before been so commonplace. In fact, the numbers have been so staggering and every pundit that has commented on the subject has failed to project its real cost.

In 2008, most of the real estate industry experts and pundits optimistically projected that the Foreclosure meltdown would subside and that the worst would be over by mid 2009 and might continue into or through 2010. It is 2011 and Foreclosures have not only increased, they are projected to continue as banks have withheld Foreclosing on homes for as long as 36 months. Why 36 months? In order to answer that we have to look at the fundamentals of a Foreclosure.

When can a Bank Foreclose?: Any homeowner that is behind in payments 90 days or more is subject to a possible Foreclosure. So, in order for a bank to begin the foreclosure process a homeowner must be at least 90 days past due on their mortgage payments. At that point the bank can issue a notice of default to the homeowner, publish it in the Newspaper and set a date at which time, if the homeowner has not caught up on their past do payments and penalties, the bank can then sell the property at Public Auction at the County Court house steps.

In the past this process was very routine and banks rarely dragged their feet in issuing a notice of default. The process itself is pretty cut and dry and previous to today’s financial meltdown, happened routinely.

For anyone that knows the Stockton Real Estate Market, the numbers are masked by sheer numbers of homes for sale, vacant houses that apear ownerlesss, and the fact that the banks are still very slow to act on approving short sales and finally to actually foreclose.

So What has changed and why are banks dragging their feet?

1. There are so many mortgages that are 90 days past due that the banks don’t have the resources and staff to tackle them all in a timely fashion.
2. The Banks need to carry cash reserves based on a formula established by the Fed and its relationship to liquidity for each mortgage they hold. If a Bank forecloses on a home, it has to report that default amount to the fed and increase its deposits for each foreclosure that the Bank had not accounted for in that reserve. Since Banks do not have to report on late mortgages, many believe that banks liquidity would come into question by the Fed if it actually foreclosed on each property at least 90 days in arrears.
3. Banks are not realtors and with all of the houses already on the market, dumping new properties in to the foreclosure pool would drive home prices down even more creating more price instability for the houses that are already on the market.
4. Many of the houses that have not been foreclosed up have been abandoned by the Homeowner and are in a state of such disrepair that the Banks do not have a process to absorb them and the capital necessary to fix and resell them.
5. Banks are using Short Sales as a way to offset foreclosures as Homeowners place their houses on the market for less than actual amount of the Mortgage. The Banks then evaluate those offers as compared to the projected losses of an actual foreclosure.
6. Homeowners are simply signing over the properties to the Bank as a Deed in Lieu. In this case the bank owns the property and does not need to foreclose.

Whether it is one of the above or all of them, it is clear that today’s Stockton real estate landscape has changed dramatically. Home prices have fallen, new home building has halted, unemployment has risen to epic proportions and many question whether Banks are being forced to deal with the Stockton real estate Bubble that they in part caused to burst. Many believe that if they were forced to actually deal with each foreclosure that Bank Failures and closing would also reach epic proportions.

Every American has witnessed the ravages of the real estate and Foreclosure meltdown. Whether it’s seeing daily the empty and vacant boarded houses that line every neighborhood, or the fact that people with excellent credit cannot get loans for purchasing these properties because the banks are not lending. The effects, I fear will linger for everyone.

For the homeowner that lost their house the scars will last for much longer than then 7 to 10 years that it will haunt their credit rating. For the rest of America, they will see home values continue to drop, unemployment will remain high and neighborhoods will continue to be blighted with vacant and boarded up houses as an eerie reminder that it is not over yet.

If you are facing a foreclosure in the Stockton Real Estate Market then you need to talk to a professional regarding all of your options. Call Westbrook Real Estate Investments at 209-481-7780 or For a FREE reoprt on how to stop foreclosure visit http://youcanthavemyhouse.com and get the information and help that your family needs today.

Westbrook Real Estate Investments offers Stockton Real Estate Buyers Seller Financing on some properties.

Seller financing can be the fastest way to sell a Stockton house fast that would otherwise sit vacant in today’s sluggish and glutted Stockton Real Estate market.

Let’s face it; there is more Stockton Real Estate for sale on the market today than there are buyers that can qualify for a loan. Gone are the days where someone merely having the ability to fog a mirror can qualify for a conventional mortgage. Banks are turning down loans for people with excellent credit and sufficient income, but because of some other risk factor they deny the loan.

For Stockton Real Estate investors to gamble on the banks continuing to loan money for Stockton area Real Estate to any particular buyer for any house specifically would be financially disastrous, as the banks are now creating their own rules to tighten the money supply and restrict lending.

In the Stockton Real Estate market, Investors in particular are savvy to the ins and outs of owner financing and utilize it on both sides of the transaction as frequently as possible. As an investor, we are currently spending all of our time leveraging most of our available capital to make new purchases while at the same time keeping enough in reserve to fix and sell the last project. The demand for Capital is incredibly high and of course the Investors cash flow is often the victim of timing, etc. our money and assets so that we can reasonably purchase that next house or sell that last home.

Seller financing allows Sellers to offer the most flexible terms to would be Stockton Home buyers and of course it provides them the means to make higher profits (though shorter vacancy rates and hold times) while at the same time work directly with Stockton Home buyers that would otherwise not qualify for a conventional Home Loan.

In Stockton Real Estate only a few companies offer Seller financing for houses as a way to generate profit margin. In our case, Westbrook Real Estate Investments offers Owner/Seller financing as a way to increase our visibility as well and it works. So, while Seller financing allows sellers to move a Stockton home faster and get a more sizable return on their investment, Stockton Real Estate buyers also benefit from what are typically less stringent qualifying and down payment requirements, more flexible rates, and better loan terms on a home that otherwise might stay vacant.

What is Seller Financing:

Seller financing is when the Seller takes on the role of the Bank, but, Instead of giving cash to the buyer, the buyer gets enough credit to for the purchase price of the home, minus any down payment. The buyer and seller negotiate and sign a promissory note (which contains the terms of the loan). They then record the note as a "deed of trust" with the County and the Promissory Note becomes part of the public record attached to the property. Seller financing can range from as little as 2 years and as long as 30 years.

Typically however the loans are a shorter term in nature. For example, a mortgage can be amortized over 10 years but have a balloon payment due in 2 or 3 years. The theory is that, by that time, the home will have gained enough additional value or that the buyers' credit will have been improved or repaired to the extent that they can then refinance with a traditional lender.For the Seller, a shorter term loan is generally preferable because the seller does not want to tie up his capital for extended periods of time for a myriad of reasons:

1. For every dollar that is out on a loan the Sellers access to that money is limited

2. The sellers usually don’t want long term risk

3. Sellers that want to move property quickly can usually negotiate favorable short term loans Types of Seller Financing Here's a quick look at some of the most common types of seller financing.

Full Asking Price Mortgage: In this type of loan, the seller carries the promissory note and mortgage for the entire balance of the home price, less any down payment.

Land Contracts: Land contracts don't pass title to the buyer, but give the buyer "equitable title," a temporarily shared ownership. The buyer makes payments to the seller and, after the final payment, the buyer gets the deed.

Mortgage Assignment: A Mortgage Assignment is simply the buyer promising to take over the existing mortgage and make the payments according to their terms. In some circles it is known as a Subject to Purchase whereby the buyer agrees to purchase the house Subject to the existing mortgage remains in place.

Lease option: The seller leases the property to the buyer for a specified term, like an ordinary rental -- except that the seller also agrees, in return for an upfront fee, and other credits that get applied to the Buyers account when rent is paid on time, to sell the property to the buyer within an Option period and generally at an agreed upon price.

Mitigating Risk: While it is not required it is advised that both the buyer and seller will hire an attorney to draft and review the documents. It is also recommended that the transaction be recorded at the county and that the transaction make use of a Title Company to assure the Buyer and Seller that the Seller has legal authority to sell the property.