Foreclosure Crisis Subsiding?

Severely delinquent balances among first mortgages are on the decline, according to Equifax’s May National Consumer Credit Trends Report.

While still elevated relative to historic levels, the May 2012 total of $450 billion in delinquent balances represents a 37 percent decline from the peak of more than $700 billion in January 2010. Of note is that 70 percent of outstanding delinquencies among first mortgages still remain tied to loans opened between 2005-2007.

The greatest level of change was seen among severely delinquent non-agency first mortgage loans (90+ days past due or in foreclosure), which fell 45 percent to $320 billion in May 2012 from its peak of $580 billion in January 2010. By comparison, agency-sourced (Fannie Mae, Freddie Mac, FHA and VA) first mortgages reported as severely delinquent declined just 9 percent to $130 billion in May 2012 after peaking at $142 billion in January 2010. Similar reductions in severely delinquent totals were seen among home equity installment loans, which declined 31 percent from their peak in February 2011 ($880 million) to May 2012 ($615 million).

“That severe mortgage delinquencies are trending downward is not surprising given generally improving economic conditions,” explains Equifax Chief Economist Amy Crews Cutts. “What is surprising is that even with the foreclosure moratoriums and and the slow resolution of foreclosure backlogs, the downward trend has been a steady, consistent drumbeat of recovery. If this pace continues, we expect the volume of severely delinquent mortgage balances to return to mid-2007 levels by the end of 2014.”

Other highlights from the most recent data include:
* Home equity revolving balances fell 18 percent from their peak of $680 billion in May 2009 to $560 billion in May 2012.

* Total credit limits among home equity revolving accounts have declined 27 percent to $1.02 trillion in May 2012 since their peak in March 2008 ($1.30 trillion).

* Year-to-date total mortgage write-offs through May 2012 are down 28 percent from
their 2010 peak. Home mortgage balances are down 12.5 percent in May 2012 from
their record-high of $9.8 trillion set in Oct. 2008. Total mortgage debt outstanding now sits at $8.6 trillion.

Source: Equifax, Inc.

4 bedroom Single Family home ~ just listed for lease

Today I listed a spacious 2 story Woodbridge SINGLE FAMILY home for lease.

It's a Magnolia model at 4 Fairdawn, (4 bedrooms, 2 car garage), with GRANITE COUNTERTOPS in the kitchen.

Located in the popular Summerfield tract of Woodbridge, the home is within easy walking distance to award-winning schools, the Blue Lake Swim Club, South Lake, parks & tennis courts.

The kitchen has lots of storage and has a charming eating alcove.

The family room opens up to the kitchen and has an open view of the LARGE AND PRIVATE BACKYARD, perfect for entertaining.

Separate step-down living room with a fireplace and cathedral ceilings. AIRCON & CEILING FANS. Formal dining room. INSIDE LAUNDRY.

This really is a great family home.

The landlord will pay for the gardener.

Please contact me if you, or anyone you know, may be interested in viewing the property.

See more of 4 Fairdawn at www.WoodbridgeRental.com

First new Woodbridge development in 15 years!

“The Branches” is being built in Woodbridge by William Lyon Homes.

This is your only opportunity to own a brand new house in Woodbridge ... no new developments have been built in Woodbridge in 15 years!

An unusual, (and good!), thing about this development is that there is no Mello-Roos.

“The Branches” will be made up of 48 detached homes, at Alderwood and E. Yale Loop, adjacent to Fallbrook Park, and you can see the plan below.
The 6.2-acre site was obtained after the closing and sale of a school. The model homes should be ready to view in February next year.

A bit about the new homes:
Three floor plans.
Two stories.
Living area of between 2,209 & 2,542 square feet.
3, 4 & 5 bedrooms.
2 car garages.
Lot sizes will average 3,900 square feet.

The homes are expected to be priced from the $900,000s

What ARE those "not on the net yet" properties?

A lot of house hunters are getting really annoyed with their offers being rejected because of the low supply of homes in today's market. Buyers in the lower price ranges are getting hit the most, with investors paying cash for properties.

How is a buyer putting down 5%, (or less), supposed to compete?

Many buyers working with a First Team Real Estate agent have an advantage on the other buyers out there, because they are getting exposed to listings BEFORE those listings are being advertised.

I'm guessing that other brokerages will follow First Team's lead, but most don't have the number of listings or the infrastructure to do this.

In the past, mainly only the higher-priced homes were "not on the net yet" for a number of reasons, one of which being that sellers didn't want their neighbors to know.

These days, lower-priced houses are a big part of the properties that aren't being advertised yet, and buyers viewing those homes first, stand a better chance of not getting involved in BIDDING WARS.

Sellers who are busy sprucing-up their homes, (painting, making repairs etc), love the "not on the net yet" program because they don't have to bother with keeping their homes "show ready", or dealing with Open Houses. They understand that if an acceptable offer isn't forthcoming before the listing hits the MLS and the extensive marketing begins, they will go the conventional route.

Interested in seeing "Sneak Preview" homes? Call me on 949-232-5634 or shoot me an email.