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Choosing The Right Mortgage Program in Today’s Competitive Sacramento Real Estate Market

Mortgage Application

Buying a home in the Sacramento area means choosing the right mortgage program.

Home Buyers in Sacramento frequently ask me “What Type of Mortgage Should I Get?” Especially here in our Competitive Sacramento Real Estate Market, Choosing The Right Mortgage Program  is an important part of the home buying process.

Before you Decide on a Home Loan. There are a few things you should be clear on as a home buyer.

First, just be ready to enter a competition: As a home buyer in today’s Sacramento Home Market, you are one of many, many, well informed and well educated price hunters. And you are all judges in a very complex beauty pageant! Price and value are so important and so critical to today’s Sacramento home buyers, that homes that are priced well and conditioned correctly are attracting multiple offers.  And these Beauty Pageant and Price War winners are going for full or above full asking prices quickly. Buying a home in Sacramento has become very, very competitive  over the last few years.  Even with the recent increase in the number on homes for sale here, we are seeing many, many homes selling for asking or over asking price, within days of being placed on the market-

So, if you see a home and fall in love with the condition, location and price… in nearly every single case, many other buyers will find it and fall in love as well- and the sellers must pick through multiple offers to find the offer that meets their needs and also represents the strongest, most likely offer to be successful and close on time -The next step in for you home purchase is actually deciding who you want on your team. Having the right Lender, the right Agent and  has become critical in this competitive real estate market.

No matter Which Home Loan You Decide to use, it’s best to be clear about certain points-

How long will I live in this house?

What are my five or ten years goals

Do I want to make home improvements?

Do I need cash on hand for other expenses or  other investments?

Do I like to take financial risks?

Do I want to be debt-free?

Getting clear on these basic, fundamental goals. This always seems to make Choosing Your Home Loan much easier-

The next step in choosing a mortgage for you home purchase is actually deciding who you want on your team. Having the right Lender, the right Agent and choosing the right type of home loan has become critical in this competitive real estate market.

So as a home buyer in the , building a winning team of professionals, people who have a winning track record and a track record of success is the most critical thing you can do-

All of these scenarios and choices will need to be considered as you and your mortgage lender Discover Which Loan Program Works Best for you.

Once you choose a lender and provide the Documents Needed for a Home Loan, you will be asked to clarify your goals, your objectives in order to identify the different  types of home loans you qualify for and that meet your needs and goals:

The conventional 30-year fixed loan may not be for you. Consider and compare all the options. There are hundreds of mortgage products out there, so be sure to find the right one for your needs. Before you approach any lenders, figure out your financial strategy.
Now that you have a reasonable picture of your financial philosophy, shop around and evaluate your options. Don’t rush into the first loan offer you get.

If you can afford to take financial risks and have the assets and credit score to back it up, you can get the best deals. Go for mortgage products that allow you to pay the least amount of cash while still satisfying your loan obligation. Consider these:

You can choose a longer loan term, such as 30 years or more. The longer your amortization period, the lower your monthly payments would be, but the more interest you’d pay. If you borrow $100,000 at 8 percent interest over 30 years, you would pay $164,000 in interest along with the principal by the end of the term. Your mortgage payment would be $733 a month. A 15-year mortgage, in contrast, would require a $955 monthly payment.
Skip the down payment and go for an “80-20” loan. A standard loan funds the first 80 percent and a second loan with higher interest rates finances a 20 percent down payment. This option also gets rid of private mortgage insurance, or PMI, which is typically required for homes bought without 20 percent down payments. PMI protects the lender in the event that a borrower defaults on a loan.

Consider an adjustable rate mortgage (ARM) if you want to keep some cash or take advantage of a low interest rate. The rate is fixed for the first few years, then begins floating. But be aware of market conditions – if rates rise, so do your payments. This option makes sense for serial relocators, who don’t plan to be in a home for more than five years. A three or five-year ARM lets you make low payments and gets you through the typical mortgage cycle. If rates drop, you can refinance. If rates rise, you can sell.

Interest-only mortgages also let you keep more cash. They do not require principal payments during an initial period, typically three, five or 10 years. After the initial period, borrowers must begin repaying principal over the remaining life of the loan. By comparison, a traditional amortizing loan requires principal and interest payments from day one, with more of the monthly payment going to interest in the early years and to principal in the later years.

Homeowners can lower their monthly payment by 20 percent to 25 percent by skipping principal payments in the early years, but they must be prepared for a big jump in payments when the interest-only period ends. A lower initial monthly payment may also allow you to qualify for a bigger home loan. The downside? When housing prices fall, you could end up owing more on your home than it’s worth.
To qualify, you normally must have good credit or pay a slightly higher fee or interest rate. Balloon payment mortgages are short-term, fixed-rate loans that involve small payments for a certain time period and then one large payment (the balloon payment) for the remainder of the loan.

If you don’t like debt and risk, you may want to stick with conventional loans with fixed rates and shorter terms, making big down payments and extra principal payments whenever possible. If you go with a 30-year mortgage, you could refinance after 10 years. You could get a lower rate and dramatically reduce your principal balance in a shorter period.
Here are more tips for finding the right home loan:

Buying or selling a home in the Sacramento area is a huge project.  Get educated and take your time- interview several professionals in each area where you will need a consultant and advisor- Real Estate Agents and Mortgage Lenders are not all created equal!

Before you interview us, listen to Listen to what our past clients and what you have to look forward to! 

The Hoyt Group Testimonials

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Then, give us a call, text, or email!


p.s. Do you know what your home is worth? Forth does! 

Forth Hoyt 
e-PRO, RDCPro, PFC,Certified HAFA Specialist, 
Master’s Club Life Member

The Hoyt Group Keller Williams Realty 
DRE 01319540

[email protected]

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New Home Specialist Agent in Sacramento Saves Clients Thousands!

Beautiful New Construction Home Sacramento


Buying a New Construction in Sacramento?

Why Use Sacramento New Homes Specialist When Buying New Construction?

Would you go to court and use the same attorney as the opposing side?

How about letting the opposing team pay the referees salary?

Of course not!

So why would you let the builders employee represent you?? Hurry! Find a Sacramento New Home Specialist Agent!

Isn’t is great to know that you have someone on your side who has been through hundreds of transactions? An Sacramento area agent with years of experience in new homes sales and knowledge to represent you? Better yet, isn’t if unbelievable to know this representation will cost you nothing? I’ll explain that in a moment, but isn’t it great to know that having us represent you does not cost you a penny!

This is your answer to “Why Use An Agent When Buying New Construction in Sacramento?

People never know this, but when you “sign in” at a new construction home builder sales office without representation, you are actually waiving and relinquishing the right to ever be represented if you ever purchase a home from that community at any time in the future!

You see, when you buy a new construction home, you’ll be entering a business transaction with someone who has done thousands of new home sales before (advantage builder), the sales agents at the Sacramento area new homes community are employees of the builder (advantage builder), their salaries, fees and commissions come out of the construction budget, part of the profit and loss of the homes… See our fee is paid for by the Sacramento area New Homes builder’s marketing budget, so it does not effect the profit or loss of the home and will put you in a MUCH better position! doesn’t that just make sense? It is smart to have your own agent  to buy a new construction home!

So take back some of these advantages! A New Home Specialist Agent Will Save You Money On A New Home! That’s right! Get a Sacramento New Homes Agent! I’ll explain in a moment how and why a Sacramento New Home Specialist Agent will cost you nothing and will undoubtedly get you in a much stronger negotiating position!  Buying a home is a business transaction first and foremost and you should have someone on your side! An agent  to represent you in the new home transaction, you and only you.

The builder has agents that work directly for them (the seller).  Your New Home Specialist Agent will represent you and your best interest as the new home buyer.  Look for an agent or team of agents with years of experience in new home sales, new homes construction, with the experience of hundreds of transactions and references from happy past clients.

Your New Home Specialist Buyer’s Agent in Sacramento knows the industry, knows the sales agents, talks to them regularly and learns of special pricing, incentive programs, how close builders are to reaching sales goals and objectives etc. So we know how to represent buyers in the best light, to save you THOUSANDS OF DOLLARS! We learn about deals that have fallen out of escrow and can be snapped up at a bargain, with a QUICK CLOSE! we know the lender incentive programs, special builder concessions that will be allowed, and which sales teams are being the most aggressive week by week … and NONE of these things are going to be  volunteered by the builders sales rep! Why would they? I mean doesn’t that make sense?
Oh.. one more thing! We also know the incentives and concessions the builders have given in the past! We know what they have been willing to do! But the new homes builder’s sales person isn’t going to tell you these “secrets!”
Buying a New Construction Home in Sacramento? Let us here at The Hoyt Group New Construction Division show you how we have helped others beat the builders! Allow us apply for the job of representing you! 916-248-7777 or email [email protected].com

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National Mortgage Delinquency Rate Now Surpasses 10%


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Sacramento Foreclosure Specialist Reports:

Foreclosures Will Continue

Foreclosures Will Continue

I was Researching Sacramento area HAMP loan mod success rates this nmorning and came across this startling article in DSNews. It looks as if all the good news the Obama powered media has been pumping out is a little off center.  Kinda Scary!

Home loan delinquency rates in the United States have now surpassed 10 percent, Lender Processing Services (LPS) reported this week.When you factor in homes already in the foreclosure process, the total rate of noncurrent mortgages sits at 13.3 percent, according to the data in the Florida-based company’s national loan-level database.This rate indicates that more than 7.2 million mortgage loans are now behind on payments, LPS explained, with another one million properties already taken back by banks and in REO status.LPS’ January 2010 Mortgage Monitor report, shows that within the population of loans that were current at the end of 2008, the percent of “new” serious delinquencies is 4.64 percent – higher than any other year analyzed. Of loans that were current as of December 31, 2008, by December 2009 there were 2.3 million new loans that were considered seriously delinquent.

Contact us today… Sacramento Short Sale Help can snswer your questions.

Seemingly less-risky, prime mortgages continue to loom large as the industry’s big, pink elephant. Prime loans, including agency, non-agency, and jumbo, have experienced deterioration at a worse pace than subprime, Federal Housing Administration (FHA) insured mortgages, and all loans as a whole, LPS said. The company’s analysis shows that within the prime loans category, those with unpaid principal balances between $417,000 and $600,000 have performed the worst. The Mortgage Monitor report also indicates that 2009 vintage loans are performing better than loans from any of the prior five years and have been steadily improving as pools of loans grow larger. This improvement is attributed to more restrictive underwriting guidelines, but that also means “liquidity is still not available where it is needed most,” LPS said.The company’s analysis shows that states with most noncurrent loans are: Florida, Nevada, Mississippi, Arizona, Georgia, California, Indiana, Michigan, Illinois, and Ohio.Those with the fewest include: North Dakota, South Dakota, Alaska, Wyoming, Montana, Nebraska, Vermont, Colorado, Oregon, and Washington.

More Questions? Sacramento Short Sale Help is here when you need us! 

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Financial Crisis Inquiry Commission Findings

Weak Underwriting Standards To Blame for Financial Crisis!

Ya don’t say… you mean not checking to see if people really make as much as they claim and giving loans to people with terrible credit isn’t a good idea? 

By now it is common knowledge that the global financial meltdown, fuelled by the housing crash and now propelled by a smashed economy and unemployment was the direct result of a huge bubble in housing and real estate values that was caused by easy credit. Leave it to the U.S. government to spend untold millions of dollars to have several days of hearings two years after the sub-prime meltdown to sit around and talk about it…

I guess documenting testimony from experts will give the powers that be something to stand on as they re-build, over regulate and totally screw up our mortgage industry.

It will be interesting to see the changes ahead in the way mortgages are sold, under written and securitized. I’ll bet we don’t like the end result.

According to DSNews on the 14th:

Thursday was day two of the Financial Crisis Inquiry Commission hearings, aimed at uncovering the root causes of the worst economic recession since the Great Depression.

The witness list included financial regulators at both the federal and state level, who confessed that supervision and oversight was lacking and failed to head off the financial system’s near-meltdown.

FDIC Chairman Sheila Bair took top billing at the hearing. “Not only did market discipline fail to prevent the excesses of the last few years, but the regulatory system also failed in its responsibilities,” Bair said.

Bair told the commission that record profitability at Wall Street firms worked to shield them from regulatory second-guessing about how the money was coming in.

She also said that at the onset of the crisis, “It’s been estimated that half of all financial services were conducted in institutions that were not subject to prudential regulation and supervision. Products and practices that originated within the shadow banking system have proven particularly troublesome.”

Mary Shapiro, chairman of the Securities and Exchange Commission (SEC), told the inquiry committee that there were many interconnected causes of the financial crisis. At the top of her list was “the rise of mortgage securitization and its unintended facilitation of weaker underwriting standards by originators and excessive reliance on credit ratings by investors.”

Shapiro said her organization is currently evaluating investment firms’ practices related to subprime mortgage-backed securities and collateralized debt obligations in the real estate bubble.

“We are seeking to determine whether investors were provided accurate, relevant and necessary information, or misled in some manner,” Schapiro said.

According to state regulators’ testimony, it was the supervision at the federal level in Washington that obstructed their efforts to avert financial catastrophe, but they too echoed Shapiro’s sentiments that it all began with the mortgage industry.

Illinois Attorney General Lisa Madigan said the mortgage lending industry had “careened out of control” in the years preceding the financial crisis. “The housing bubble may have officially burst in late 2007, but those of us on the frontlines of consumer protection have seen predatory lending practices since the late 1990s,” Madigan said.

Phil Angelides, chairman of the congressionally-appointed commission and a former California treasurer said he will also be asking former Federal Reserve chairman Alan Greenspan, current Fed chairman Ben Bernanke, and former chairmen of the SEC, including Christopher Cox to testify before the panel.

“We’ll be asking them to come before us because they were the watchers, and I will assure you, we will be as probing of the regulators who were on the scene at the time as we will be of people in the private sector,” Angelides said.

Angelides’ committee is modeled after the Pecora Commission, which probed Wall Street’s 1929 crash and led to the creation of the SEC and other financial reforms of the time.

On Wednesday, Angelides and his fellow panel members heard testimony from the heads of four of the nation’s largest financial firms on their business practices leading up to the crisis and their miscalculations of the severity of the meltdown.

Courtesy DSNews

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Sacramento homes sales fall by 32 percent for November

Sacramento Real Estate Market Reports

Its easy to understand why; in most cases, you cannot come close to buying a new home for what you could buy a re-sale for here in the Sacramento area.

I have said for a long time that our entry level price range must eventually “bounce” here in our Sacramento housing market in and get back in line with replacement costs. When the supply of repos and short sales slow, the prices must recover to be closer with new construction. I mean it’s almost ridiculous: In some neighborhoods, if someone gave you the lot, paid for the permits and gave you a truckload of lumber, you still couldn’t build a new house as cheap as you could just buy a re-sale home!

Michael Shaw of the Sac Bee wrote a great little piece the other day and I am including it here:

November new-home sales in Sacramento were 32 percent lower than the same month in 2008, according to figures released by California Building Industry Association on Wednesday.

A total of 141 new homes of all types were sold in the four-county region, compared with 181 sales the year before. The average price paid for those homes, however, inched 2.8 percent higher to $329,300.

The association reports home sales figures compiled by analyst Hanley Wood Market Intelligence, which tracks new home communities with more than 10 units.

In the state, the November sales rate at California new-home communities was 4 percent lower than 2008

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A Clogged Foreclosure Pipeline- And over 13% of Loans are Delinquent-

Foreclosure Rates May Soar

Foreclosure Notice in Sacramento

Foreclosure Notice in Sacramento

Courtesy Chris Mcglaughlin

One in every 7.5 homeowners either fell into delinquency or foreclosure as of November 30, 2009, according to the December mortgage monitor report from Lender Processing Services.  The total number of delinquencies reached a record high of 9.97%, a 5.46% increase from the previous month and a 21.29% increase from November 2008. Loans falling into more severe delinquent categories reached 5.01% through November, compared to 1.52% of loans improved toward a current status.  That’s compared to November’s mortgage monitor report, when 4.02% of current mortgages through December 2008 fell into delinquency by October 2009.  More than 4% of the loans that were current in December 2008, fell behind by 60 days or more, including foreclosure, by the end of November 2009. 

Click here for Sacramento short sale help.

It’s the highest rate for that part of the year since LPS began reporting the data.  The foreclosure rate in November reached 3.19%, a 1.46% increase from the previous month and an 81.41% increase from November 2008. This doesn’t include the amount of homes falling into the shadow inventory of foreclosure. Some data providers like First American CoreLogic speculate that number could be as high as 1.7 million as the roadblocks of the government incentive programs and moratoriums clog the foreclosure pipeline.  “Foreclosure starts continued to decline as a result of loss mitigation efforts like the federal government’s Home Affordable Modification Program (HAMP) and elevated delinquent loan volumes,” according to the report. “The reduction in foreclosure starts, combined with the steady increase in the number of seriously delinquent loans, has resulted in an ever-growing ‘shadow’ inventory of troubled properties.”  The states with the most non-current loans were Florida, Nevada and Mississippi. Those with the fewest were North Dakota, South Dakota and Alaska.

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Struggling Homeowners: 4% Get Mortgage Help

This just in from Chris McLaughin:

Treasury officials, in the first comprehensive tally of permanent modifications made, say that loan servicers have converted 31,382 people from trial adjustments to long-term assistance as of Nov. 30, but 30,650 people in trial modifications have been denied.  That means that only about 4% of troubled borrowers have received long-term help under the Obama administration’s foreclosure prevention program.  A nearly equal number of trial modifications have been denied permanent assistance, the report showed. The reasons include not making monthly payments on time, not submitting all the necessary paperwork and not qualifying for reasons such as insufficient income. 

Homeowners claim that banks keep losing paperwork, but banks claim they often don’t get it in the first place.  Around 375,000 people should be eligible to receive long-term relief by year’s end, but only one-third of homeowners who have made at least three trial payments have submitted all the needed forms, Treasury officials say, and some 20% have not submitted any paperwork at all. Banks and government agencies have hired outside companies to knock on borrowers’ doors to assist them with completing the paperwork.  None of this addresses the real problems, of course:  a lot of people are underwater and don’t see the point of making payments, and quite a few know they won’t qualify once their real income comes to light.


Along the same lines is This Article From DSNews:

Treasury released the highly-anticipated progress report on the government’s foreclosure prevention program Thursday afternoon – which for the first time includes details on the number of trial modifications each servicer has converted to permanent status – and as lenders warned earlier this week, the results were disappointing.

Of the more than 728,000 Home Affordable Modification Program (HAMP) trials under way across the country, 375,000 are scheduled to convert to a permanent modification by the end of the year, and only 31,382 have made the transition.

The Treasury Department said in a statement to the press, “According to servicer reports, most borrowers in modifications are meeting their responsibilities to make their payments. Servicers need to do their part to help borrowers complete the process and get to the finish line.”

A number of servicers have told DS News that the problem lies in the paperwork. They say an unsettling number of borrowers just don’t submit the required documentation for conversion once they complete the trial phase, or file incomplete or inaccurate information. Participating servicers say they’re ramping up outreach efforts to ensure homeowners who’ve successfully completed their trial phase get the necessary documents in for permanent assistance.

Molly Sheehan, SVP of housing policy for JPMorgan Chase’s home lending division told a congressional panel earlier this week that the focus of her group’s “immediate attention is finding ways to assist the 51 borrowers out of 100 that are missing some or all of the documentation.”

But on the other end of the process, homeowners and their advocates say it’s the servicers and their staff that cause the delays, and in some cases, even lose the paperwork.

Julia Gordon, senior policy counsel for the Center for Responsible Lending, testified to lawmakers Tuesday that servicers still lack the capacity to effectively administer a program of HAMP’s size and scope. It’s been nine months since HAMP began, and Gordon said, “Homeowners still have terrible trouble reaching their servicers, and when they do, they often encounter staff who are ignorant of the HAMP program, they sit through attempts to steer them into other products, and they are unable to get any firm decisions made in a timely manner.”

Timra Valentyne, a loan officer with United Homestead tells that she’s encountered similar problems helping homeowners work with their servicers on HAMP modifications. On numerous occasions, Valentyne said, the borrowers’ documentation gets lost in the shuffle or never gets tagged for the appropriate account.

She cited a particular case with Chase, in which the homeowner had successfully made his restructured payments through five months of a HAMP trial, but was denied a permanent modification because he cashed in a certificate of deposit (CD) to help cover the new payments and the bank ruled his hardship was only temporary. When Valentyne followed up with Chase, the bank representative told her the homeowner was never on the HAMP plan, although the homeowner had a rejection letter stating that he’d been denied for the “Making Home Affordable” modification program – a clear discrepancy in records and paperwork.

Gordon advocates requiring HAMP-participating lenders who are producing insufficient results to use specialty servicers working for the government to handle certain accounts. These companies specialize in intensive, “high-touch” approaches to working with homeowners in trouble, she says, and are much more effective at reaching borrowers than a mainstream servicer.

One specialty servicer says it’s exactly this type of high-touch method that has led to its HAMP success. Ocwen Financial has converted an industry-leading 74 percent of its trial mortgage modifications to permanent status. The Treasury’s latest HAMP report shows that Ocwen accounts for a disproportionately high 13.5 percent of all permanent modifications completed to date even though it services only 2 percent of the estimated HAMP-eligible loans.

Ocwen says its partnerships with homeowner advocacy groups have been indispensible in helping the company keep borrowers active in the process. Ocwen collaborates with a range of independent housing advocacy and grassroots organizations to reach out to homeowners and to help them gather the required documents for a modification.

Based on the December HAMP report GMAC Mortgage is having the most success with permanent modifications in terms of sheer numbers. GMAC has successfully made the conversion for 7,111 homeowners. The company has extended trials to 39 percent of its eligible borrowers.

Bank of America had the worst showing of all the largest lenders. It has finalized a mere 98 permanent modifications, and has extended trial offers to only 15 percent of its more than a million eligible homeowners.

The administration recently announced a new push to compel servicers to complete more permanent modifications, threatening to impose fines, withhold cash incentives, and publicly name those companies that fail to perform up to par

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More than 18 percent of FHA borrowers are at least one payment behind

 FHA Foreclosures Surge

Mortgages in foreclosure

Did you read that?

FHA foreclosures? Holy cow; that means nearly one in five FHA loans are more than 30 days behind! Most of those FHA borrowers would have bought since the mortgage crash of 2007, since FHA loans were almost extinct before that…

The Mortgage Bankers Association also found recently that 14 percent of all homeowners with any type of mortgage were either behind on payments or in foreclosure at the end of September. It was a record-high figure for the ninth straight quarter.

As they say; even a dead cat will bounce– The media had it all wrong this summer; calling for a bottom and raising hopes of a housing turn-around… There are still many, many more homes coming through the fore closure pipeline…

Loan modification starts are way up, nearly 700,000 homeowners nationally (about 20% of those who qualify) have started the modification process. However, over 75% of those will default again, recent history shows us.  And of the 25% that don’t default, how many of them will re-consider when they finally realize that only 10% of loan modifications have any type of principle reduction… it may take 20 years in some areas to get back to ‘ground zero’ or where folks can sell without going short or bringing money to the closing table.

I am really not a pessimistic person, in fact I am too optimistic usually and it has cost me a lot of money and pain by seeing through “rose colored glasses” in the past.  I just really see too many signs of more problems to come and think we are a long way from the bottom

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Sacramento Area Homeowners: 10.29% Over 90 Days Delinquent


 According to


Foreclosure rates in Sacramento-Arden-Arcade-Roseville-Woodland metropolitan area increased for the month of September over the same period last year, according to First American CoreLogic.

The rate of foreclosures among outstanding mortgage loans was 3.61 percent for the month of September, an increase of 1.58 percentage points compared to September 2008 when the rate was 2.03 percent.

Foreclosure activity in Sacramento-Arden-Arcade-Roseville-Woodland was higher than the national foreclosure rate, which was 2.93 percent for September 2009, representing a 0.68 percentage point difference.

Also in Sacramento-Arden-Arcade-Roseville-Woodland, the mortgage delinquency rate has increased. According to First American CoreLogic data for September 2009, 10.29 percent of mortgage loans were 90 days or more delinquent compared to 6.35 percent for the same period last year, representing an increase of 3.94 percentage points.

Courtesy of Real Estate News & Commentary by Chris McLaughlin, November 17, 2009

3Q09 – Delinquencies up, rate slows

According to credit reporting agency TransUnion, delinquent mortgages were up 58% from 3.96% a year ago, and as of Sept. 30, 6.25% of U.S. mortgage loans were 60 or more days past due.  Two months delinquency is considered a first step toward foreclosure because it’s hard for homeowners to catch up with payments at that point.  The rate of delinquency is slowing, however.  The rate was up 7.6% from the second quarter — a much smaller jump than the 11.3% rise in the second quarter and a 14% rise seen in the quarter before that.  F.J. Guarrera, vice president of TransUnion’s financial services division, says that while the slower rate is encouraging, the co9ntinual increase shows there are still a lot of problematic mortgages out there. 

Mortgage delinquencies remain highest in the four states where the crisis has hit the worst: in Nevada, the rate reached 14.5%, up from 7.7% a year ago; in Florida, the rate was 13.3%, up from 7.8% last year; in Arizona, the rate hit 10.4%, up from 5.5% in 2008; and in California, the rate jumped to 10.2%, from 5.8% last year.  Two things have to get better before mortgage delinquency rates start reversing themselves: home values and unemployment. “Until we see improvement in both of those areas, it’s possible that it will take longer for delinquency to improve,” Guarrera said.

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Californian foreclosures up 22%

California Foreclosures1

California Foreclosures are up but still being postponed

According to data released by, foreclosures in California increased 22.24% from September to October.  Last month’s foreclosures increased 20.95% from October 2008, which were 42.56% below California’s peak month of July 2008.  But since then, the inventory of real estate owned (REO) properties has grown 131.36% in California.  “While we continue to see a steady stream of properties entering foreclosure, relatively few are completing the process and being sold at auction despite the increase this month,” said CEO Sean O’Toole.  “The bigger picture is that more and more homeowners are finding themselves upside down in foreclosure limbo,” O’Toole added, “some hoping for a loan modification or short sale, while others are just waiting for a knock on the door.”  The number of foreclosures initiated in October remained level with September levels but this is due in large part to recent legislation enacted in California


Courtesy Real Estate News & Commentary by Chris McLaughlin, November 16, 2009

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