Friday, September 20, 2013

Foreclosures In The Pipeline?

A while ago I ran stats for foreclosures in Santa Clarita Valley. All areas of SCV and all stages of foreclosure. Notice of Default, Notice of Trustee Sale, and Foreclosed upon already. That number sat, for a while, at around 2000. If my memory serves me correctly it was about one and a half to two years ago.

A new buyer, looking for a deal, to buy, live in, fix up and sell is what prompted this post. Of course they want to make money on the deal. In SCV of course.

I told them that deal was a year ago. It's hard sometimes to be honest. To tell the truth as that persons bubble bursts a bit.

I did say if we could find the 'dog' of a property that no one else wanted, then maybe. I also talked about sitting on the courthouse steps at auction. They do not have that kind of liquid cash.

I did run the foreclosure stats again today for them. That number is now at 869, less than 1/2 of when we had a ton of short-sales and REO's on the market.

One of them thinks we are going to get a flood of foreclosures hitting the market again in 2014. That the banks are holding them. I explained that California is a judicial state....there really isn't a delay in foreclosure like in, say Florida, where the judge has to approve the foreclosure.

Now, I'm not saying it wasn't a total mess a few years ago, but we've been clearing them out in the last couple and our inventory of active listings is less than 10% of distressed properties compared to just even last year where 3 times that many were distressed.

So, although I can't make any guarantees, I don't expect that 2014 doom to arrive here in California because there just isn't that much in the pipeline.

Equity is up, delinquency is down. Banks DO NOT want to own homes. That's why there were soooo many short-sales vs. REO's in the last couple years.

Just my opinion....based upon fact....not hype!

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