Market Update
 It is time for a market update and there is a fair amount to discuss. Let's first review what's happening in the foreclosure world since troubled loans continue to dominate the market. The three steps in a foreclosure proceeding is the Notice of Default, Notice of Trustee Sale and the Trustee Sale. Contrary to the general belief these stages do not necessarily follow lockstep one upon the other. Lenders often file a Notice of Default to preserve their rights and routinely forebear from filing the Notice of Trustee Sale 90 days later, which is what the law allows. Lenders often file a Notice of Trustee Sale and forebear from actually selling the property 21 days later as the law allows. It all depends on how badly the lender wants to avoid taking the property back. The numbers for June for each of these stages in sequence is as follows according to ForeclosureRadar.com:
· Notices of Default, the initial step in the foreclosure process, rose by 11.8 percent to the second highest level on record at 45,691 filings
· Notices of Trustee Sale dropped by an unexpected 28.7 percent
· Foreclosure sales increased by 24.7 percent following a 31.9 percent increase in May, and a 35 percent April increase.
The temporary drop in Notices of Trustee Sale was presumably attributable to the lenders' need to demonstrate that they qualify for the exemption under the foreclosure moratorium before they proceed to sale.
In light of these dismal numbers why did the Los Angeles Times report that "Southern California home prices may have finally hit bottom, with median values rising last month for the first significant increase in two years." As I've indicated in several newsletters and webinars, despite the continuing flood of new foreclosures REO agents will tell you that they are not having to discount their pricing to move product for two reasons:
1. Homes are very affordable
2. Government incentives for new homebuyers are very generous
There is a third reason that doesn't get discussed much which is lenders seem to be controlling the flow of REO's the way diamond wholesalers control the flow of diamonds or OPEC nations control the flow of oil to control pricing. As a result, deals are out there but they simply require more relationships and more manpower to find them, which is what you want for a flip market--the continued existence of deals with a growing appetite for appropriately priced property.
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LOL - Laughs OnLine
"At the retired comics hospital"
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What's the Big Idea?
by Kwame J. Granderson
Every Sunday, among other things, I play tennis with my seven-year old daughter. Recently, I was cautioned by the woman responsible for assigning and maintaining the courts that I have to be careful about crossing the line between playing and instructing my daughter or the tennis pros will complain to the city (we have the audacity to play on public courts). I guess the offense is that to the extent I show my daughter how to hit a backhand I have taken money out of the pocket of a tennis pro who could have taught her the same thing. My cousin is a tennis pro so I'm all for tennis pros securing as many new clients as public facilities will support. My concern is that if I show my daughter how to meditate in the park am I now going to get nasty letters from Thai Chi instructors who have lost revenue. I guess I will just compel my daughter to sign a notarized acknowledgment affirming that she did not retain my services in lieu of a professional instructor and that the Pinkberry yogurt we get after tennis does not constitute a kickback.
Happy Birthday Pharaoh!
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Share If You Care
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Sincerely,
Kwame J. Granderson
Equinaire
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