FORECLOSURE FILINGS DOWN IN SEPTEMBER

Foreclosure filings down 12% in September

New state laws slowing foreclosure process

By Inman News

New state laws that require loan servicers to give advance notice before filing a notice of default helped push down foreclosure-related filings by 12 percent nationwide in September, data aggregator RealtyTrac.

California, which accounts for nearly one-third of foreclosure activity, passed legislation that took effect in September requiring lenders to make contact with borrowers 30 days before filing a notice of default. Notices of default in California dropped 51 percent in September, with a corresponding “significant impact” on national numbers, RealtyTrac said.

RealtyTrac said notices of default fell 66 percent in North Carolina, a state that now requires lenders to provide homeowners and the state commissioner of banks 45 days’ advance warning of plans to file a notice of default.

Lenders file notices of default as the first step in the foreclosure process, in most cases after borrowers fail to make two or more payments. A notice of default starts the clock ticking on a forced auction sale or bank repossession of a delinquent borrower’s home.

Foreclosure-related filings include default notices, auction sale notices and bank repossessions. Because many borrowers refinance, get current again on their loans, or negotiate a short sale or loan modification with their lender, not all properties subjected to filings are actually repossessed or sold by lenders.

But in many instances, the new laws governing notice of default filings may only delay lenders from initiating the foreclosure process.

After a new Massachusetts law took effect in May requiring that lenders give homeowners a 90-day right-to-cure notice, initial foreclosure filings were lower than normal for the following three months. But initial foreclosure filings were up 465 percent from August to September, RealtyTrac said, as the first loans subject to the new rule emerged from the 90-day window.

Nationwide, RealtyTrac counted foreclosure related-filings on 265,968 properties in September, down 12 percent from August but up 21 percent from a year ago.

At the state level, Nevada saw foreclosure-related filings jump 11 percent in September. The rate of foreclosure-related filings in Nevada — one for every 82 homes — was the highest in the nation, and more than five times the U.S. average of one filing per 475 homes.

With one filing for every 178 homes, Florida moved from fourth place to second on the list of states with the highest foreclosre rates.

In California, the dramatic decline in notices of default contributed to a 32 percent decrease in foreclosure-related filings. Still, one in 189 homes was subjected to a filing, the third-highest rate in the nation.

Arizona, Georgia, Michigan, Ohio, New Jersey, Indiana and Colorado rounded out the list of the 10 states with the highest foreclosure rates.

For the third quarter, RealtyTrac counted foreclosure filings on 765,558 homes, up about 3 percent from the second quarter and 71 percent from a year ago.

Six states — California, Florida, Arizona, Ohio, Michigan and Nevada — accounted for more than 60 percent of foreclosure-related filings.

The 10 cities with the highest foreclosure rates among the nation’s 100 largest metropolitan areas in the third quarter were located in California, Florida, Arizona and Nevada.

They were Stockton, Calif.; Las Vegas, Nev.; Riverside-San Bernardino, Calif.; Bakersfield, Calif.; Fort Lauderdale, Fla.; Phoeniz, Ariz.; Sacramento, Calif.; Orlando, Fla.; Fresno, Calif.; and Oakland, Calif.

Search Bank Owned Homes at CentralValleyHomes.com

CAROL PERDEW
Prudential California Realty
(209) 239-7979

 

Homeowners May Be Locked In Homes With Negative Equity

Upside-down borrowers locked into homes
Study find More May Be Stuck Than Displaced

By Matt Carter, Inman News

A new study suggests buyer psychology and tighter credit aren’t the only factors keeping would-be home buyers on the fence — homeowners with negative equity are often “locked in” to their existing homes and are nearly 50 percent less likely to move in order to take a new job, cut their commute time or move to a neighborhood with better schools.

The study, Housing Busts and Household Mobility, found that while becoming “upside down” forces many homeowners to move from their homes because of foreclosure, an even greater number have historically ended up stuck in their homes.

That’s because until housing prices rebound, a sale of their existing home won’t pay off their existing mortgage — let alone generate the proceeds needed for a down payment on their next home.

The study’s authors — housing experts at the University of Pennsylvania Wharton School of Business and the Federal Reserve Bank of New York — warned that the repercussions of “lock in” include less efficient job markets and reduced incentives for homeowners to keep up and make improvements to their homes.

Some families will not be able to move to access better jobs in alternative labor markets, the study concluded, while others who would like to move to access better schools or a different-size home will be unable to do so, the study said.

The study looked at two decades of housing data, covering the period from 1985 to 2005, and found that negative equity reduces homeowner mobility more than previously believed. All in all, having negative equity reduced the percentage of homeowners moving within a two-year period by 5.6 percentage points, a reduction of 47 percent from the baseline mobility rate of 12 percent.

“That the net impact of negative equity … has been to reduce, not raise, mobility may surprise some given the high number of defaults and foreclosures in the current environment,” the study noted.

The study looked at a period when subprime lending was not nearly as prevalent, and included only owner-occupied homes — not those purchased as investments or second homes. Only time will tell whether the number of people locked into their homes during the current downturn outnumbers those forced to move because of foreclosure, the authors concede.

Even if the study’s analysis of the past can’t simply be extrapolated into the future, “policymakers should begin to consider the consequences of lock-in and reduced household mobility because they are quite different from those associated with default and higher mobility,” the authors said.

More research is “urgently needed” on issues surrounding the “financial frictions” associated with potential mortgage lock-in, the study said.

According to Worldwide ERC — formerly the Employee Relocation Council — about 794,000 households relocate a year because they are transferred to a new job within the U.S. About 54 percent are homeowners, while the rest are renters.

Worldwide ERC reports that most companies offer to purchase at least some employees’ homes if they can’t sell, while 20 percent reimburse employees’ selling expenses. The group, which represents organizations that manage relocation programs, estimates $32 billion a year is spent on U.S. corporate relocations.

The new study provided an overview of past research demonstrating that falling home prices or rising interest rates can lock borrowers into their homes. Households without access to enough cash or credit may find their options constrained even if home equity does not turn negative.

Another factor that can trigger the “lock-in effect” is the original loan-to-value (LTV) ratio. The smaller the down payment provided by the home purchaser, the more quickly they end up “upside down” in the event of price declines.

The study noted that in the San Francisco Bay Area, LTV ratios were typically around 80 percent until the end of 2002, and then increased sharply to 90 percent in 2004.

“Essentially, the typical new home buyer in the Bay Area bought a house for $800,000 in 2006 using a $720,000 mortgage,” the study concluded. “If prices really do decline by 25 percent from their peak, the underlying house value will be around $600,000, which is much lower than the typical mortgage balance taken out that year.”

In the late 1990s, barely 10 percent of Bay Area borrowers had LTVs above 95 percent. By 2006, about 35 percent of buyers had LTVs exceeding 95 percent, and more than half exceeded 85 percent.

The study’s authors — Fernando Ferreira, Joseph Gyourko and Joseph Tracy — also shed light on how demographics affect mobility. While being married does not affect mobility, divorce does make homeowners more likely to move.

So does race, sex and education. Households headed by a person with some college have two-year mobility rates that are 4.2 percentage points higher than those without a high school degree. Whites are more likely to move than non-whites, and female-headed households are more likely to move than those headed by males, the study found.

CAROL PERDEW
Prudential California Realty
(209) 239-7979
wwwCentralValleyHomes.com

Bass Pro Shop Will Showcase An Extraordinary Opening

The first Northern California Bass Pro Shop will be opening on Wednesday.  Based on other store openings, more than 10,000 people are expected to attend Wednesday’s pre-grand opening celebration. Bass Pro Shop is expecting to draw guests from up to 250 miles away for the five-day event. Read the following to find out more about the extraordinary Bass Pro showroom.

Bass Pro may lure 50,000 to Manteca in five days

Dennis Wyatt
Managing Editor
Manteca Bulletin

The biggest party Manteca has ever seen starts Wednesday at 8 a.m.

That’s when Bass Pro Shops opens its first Northern California store as the anchor in the Promenade Shop at Orchard Valley at the lifestyle center being built at Union Road and the Highway 120 Bypass.

Store representatives are projecting in excess of 50,000 guests in a five-day period go through the 120,000-square-foot store to celebrate the store’s opening.

Based on other store openings, more than 10,000 people will attend Wednesday’s pre-grand opening celebration.

It is such a huge crowd – many people spend four to six hours in the store – that the original opening time of 3 p.m. Wednesday worried Caltrans so much about the potential for a massive grid-lock on the Highway 120 Bypass just as the afternoon commute gets underway that Bass Pro Shops agreed to open the doors Wednesday at 8 a.m.

Official ribbon cutting activities are at 5 p.m. and the big draw – the “Evening of Conservation” to raise funds for area conservation groups – starts at 6 p.m.

To put the store’s draw in perspective, the implosion of the four 15-story Spreckels Sugar silos 12 years ago drew just over 9,000 spectators to watch what was a 15-second event. Concerns about dust – which never materialized – prompted the CHP to temporarily close the Highway 120 Bypass.

The biggest events in Manteca – the Crossroads Street Fair in April and the Pumpkin Fair in October – have had record turnout for the two-day events that came to just under 35,000 people. Most people spend a couple of hours at the street fairs. By comparison, Bass Pro Shop’s average visitors spend between four and six hours.

Bass Pro Shop is expecting to draw guests from up to 250 miles away for the five-day event.

Bass Pro representatives noted the store is a tribute to the grandeur of Yosemite National Park, and the history and culture of California’s Central Valley and its people complete with 3,500 area artifacts, antiques, pictures, mounts and memorabilia.

Hand-painted murals depict scenes of California ’s picturesque countryside from Emerald Bay to Muir Wood, to Gray Lodge State Wildlife Refuge and Sutter Buttes, to the California coast and Sierra range. The décor includes Spectacular waterfalls, lush forests, pristine mountain lakes and beaches.

Massive log and rock work frame the Grand Entrance. Inside, rustic wood floors, antique pine wall finishes, and vaulted post and beam construction ceiling make up the front lobby. A fire crackles in the 18- by 15-foot moss rock double-sided fireplace and a 65-foot replica of the world’s largest tree (in volume), The General Sherman in Sequoia National Park, greets visitors.

Giant outdoor themed chandeliers, made by Bass Pro Shops’ own artisans, hang throughout the store. Elk, deer, raccoon, rabbit, turkey, bobcat and bear tracks are imprinted in the concrete floor. Bear, deer, sheep and other wildlife in natural and action settings are set amidst boulders on top of the 24,000-gallon fresh water aquarium.

Massive rockwork soaring up to 30 feet high above the aquarium replicates Yosemite ’s Half Dome and allows visitors to walk under the waterfall as it cascades into the fresh water aquarium

The main aquarium will be stocked with more than 120 fish native to the area including largemouth bass, striped bass, sturgeon, brook trout, rainbow trout, blue catfish, white crappie and bluegill. The trout pond will feature 20 native rainbow, brook, cut throat, golden and brown trout. Two elevators rise up behind the trout pond offering riders a bird’s-eye view of the store and all the wildlife dioramas. An antique pedestrian trestle walkway spans the second floor between the hunting and camping department.

Special displays in the store include a pictorial and memorial tribute to John Muir and the 26th United States President, Theodore Roosevelt. An avid outdoorsman, President Roosevelt promoted the conservation movement and efficient use and maintenance of natural resources. Muir, an early advocate of conservation, was instrumental in saving the Yosemite Valley, the Sequoia National Park and various other wilderness areas.

The store also features a General Store and a Fudge Shop.

There is a laser arcade themed as a remembrance to one of California ’s most significant events-the Gold Rush. Remnants of an old gold mining community have been taken over by a bevy of wild ‘critters.’ The arcade features 56 animated laser targets and each laser rifle costs 50 cents for 20 shots.

The Bass Pro Shops Outdoor World in Manteca will also include a Conservation Room celebrating local conservation groups. The room will accommodate 120 people for various civic, educational or conservation functions.

FAST FACTS

• WHAT: Bass Pro Shops • WHERE: Union Road at the Highway 120 Bypass • WHEN: Wednesday, Oct. 15. Doors open at 8 a.m., ribbon cutting at 5 p.m., “Evening of Conservation” starts at 6 p.m. • TIPS: Don’t take Union Road to reach Bass Pro Shops either Wednesday or the following four days. Take Main Street or Airport Way to Woodward Avenue and approach the south side of the mall from roads off Woodward Avenue.

Carol Perdew
(209) 239-7979
www.CentralValleyHomes.com

Local Pumpkin Fair Is Packed with Community Events

Sunny fall day awaits those going to pumpkin bash

Dennis Wyatt
Managing Editor
Manteca Bulletin

You have until the bewitching hour of 6 o’clock today to enjoy the fall magic.

That’s when the Manteca Pumpkin Fair grounds turn back into downtown Manteca.

The first measurable rain in months didn’t put a damper on the 24th annual Sunrise Kiwanis event on Saturday. The drizzle stopped in time for things to dry out enough to bring decent crowds to the fair taking place in the triangle bounded by Yosemite Avenue, Center Street and the railroad tracks. Although 200 vendors paid to display their wares both days a number elected to either not show up due to the rain or opted to just be on hand today when the forecast calls for a rain-free partly sunny fall day with the high reaching 77 degrees.

Freebies flowed freely Saturday especially from politicians as kids collected everything from balloons to inflatable sticks with the names of candidates printed on them. There were also a number of lawn signs spotted under the arms of fairgoers as many opted to take them from Democrats and Republicans to put signs in their front yards or opted to take them from several City Council, San Joaquin County Superior Court and South San Joaquin Irrigation District candidates who had secured booths for the event.

There were plenty of non-profits sharing information from the Friends of the East Union Cemetery and the Boys & Girls Club to the Manteca Unified Student Trust.

The Pumpkin Fair staple – food booths, crafters, and hawkers of everything from puppet animals to humorous T-shirts – were also available.

Today features the car show on Maple Avenue as well as continuing free entertainment.

On the Main Stage at Wilson Park you can enjoy:

MAIN STAGE

11 a.m. to noon – Matt Vaughn

Noon to 2 p.m. -Bernadette & The Element

3 to 5 p.m. – Latin Magic

The Library Park Gazebo Stage sponsored by the Financial Center Credit Union also has plenty of entertainment options.

The stage features:

GAZEBO STAGE

10 a.m. – Creative DJ

10:30 a.m. – Brieanne Jansen

11 a.m. – Christian music

Noon – Manteca Police K9

Noon – Pumpkin Dessert signings

1 p.m. – Christian music

2 p.m. – Japanese dancers

2:30p.m. – Brieanne Jansen

3 p.m. – Pumpkin Dessert Awards

4 p.m. – The Dandylion War Band

The Community Stage is located in the 100 block of South Maple Avenue.

The performers include:

COMMUNITY

10 a.m. – Lilian Pacheco

10:30 a.m. – Amanda Rosas

11 a.m. – Kellie Kotch

11:30 a.m. – Ashley Parker

Noon – Manteca Judo Club

12:30 p.m. – Manteca Idol

1 p.m. – Dance Stars

1:30 p.m. – Kevin & Cindy Mello-Hall

2 p.m. – Keisha Mello-Hall

2:30 p.m. – Plushchic Styles & Cuts

3 p.m. – SONdance Christian dance school

3:30 p.m. – Manteca Cowboys

4 p.m. – Universal Dance

4:30 p.m. – Brieanne Jansen

CAROL PERDEW
Prudential California Realty
(209) 239-7979
www.CentralValleyHomes.com

Experts Disappointed with Local Homeowner Tax Assistance

Did area get shortchanged by HUD?
Leaders, real estate experts not happy with share of foreclosure pie help

Dennis Wyatt

Managing Editor
Manteca Bulletin

Stockton-Manteca has been at the epicenter of the foreclosure meltdown during 2008.

But when it came to the Housing and Urban Development divvying up $3.92 billion this past week of the federal taxpayer funded Neighborhood Stabilization Program, a number of people ranging from both U.S, Senators Dianne Feinstein and Barbara Boxer down to Manteca Mayor Willie Weatherford and real estate professionals such as Tom Wilson believe the region got the short end of the stick.

Weatherford said it reflected Congress’ pervasive ABC – “Anyplace But California” -attitude when it comes to distributing tax assistance.

“It doesn’t say much about our Congressional influence,” added Wilson.

Boxer and Feinstein issued a joint statement that noted, “Frankly, it is beyond us how California – which has nearly twice the amount of foreclosure filings than Florida (561,223 compared to 287,210) – could receive less assistance. This makes no sense, and is totally unacceptable.”

California overall is receiving $529 million, less than the $541 million that Florida is receiving. The money is being made available to allow jurisdictions to buy foreclosed homes and turn it into affordable housing stock.

Northern San Joaquin County – which spent much of the year on top of the list of hardest hit areas by foreclosures in the nation – received the following amounts:

• Stockton, $12,146,038.

• San Joaquin County, $9,030,385.

• Modesto, $8,109.274.

• Stanislaus County, $9,744,482.

Cities such as Manteca and Tracy were either unable to apply or chose not to apply due to the complexity and short time frame. Merced, though, did, and got nothing.

Stockton still rates high on the national foreclosure list with one in every 15 homes in distress.

Manteca, a month ago, had 1,200 homes in various forms of distress whether it was an actual foreclosure or a homeowner in danger of defaulting on their loans. Home sales, though, have been picking off foreclosures at a rate somewhat faster than new foreclosures have come on the market.

That is where the rub comes in according to information released by the HUD in the methodology they used to determine what cities and states got assistance with foreclosures.

The Housing and Economic Recovery Act of 2008 calls for allocating funds to states and local governments with the greatest need as determined by the number and percentage of homes:

• in foreclosure in each jurisdiction.

• financed by subprime mortgages in each jurisdiction.

• in default or delinquency in each jurisdiction.

HUD used U.S. Postal Service data to determine areas where abandonment of homes were more likely, unemployment rates, relative home price declines, and other data to determine how likely it is that foreclosed homes will remain for extended periods of time unsold and uninhabited. 

 

View Homes for Sale at  CentralValleyHomes.com

 

CAROL PERDEW
Prudential California Realty
(209) 239-7979
wwwCentralValleyHomes.com