Update on Stockton, CA

Back in November, I was speculating that maybe Stockton, CA was starting to climb out of their foreclosure mess due to the increasing FHA originations. Let's take a look at what happened in the remainder of the year.

In November, I showed numbers through September where the monthly originations were continuing to rise each month. As you can see from the chart above, the numbers dipped in November following the elimination of Down Payment Assistance. However, the numbers rose again in December. So there continues to be positive signs of improvement. It will interesting to see what happens in the first quarter of 2009 for this distressed market.

Stockton, CA FHA Originations Rising

Is Stockton, California slowly climbing out of their foreclosure mess? The monthly number of FHA Purchase Originations is continuing to rise. The chart below shows the trend of FHA Originations for January through September 2008.

Click on the image for a larger view.

Buyers can now buy in Stockton with FHA products that they were unable to do before. Hopefully this will help reduce the inventory of foreclosed properties.

Bakersfield, CA Losing Value Fast

In Bakersfield, CA new homeowners are losing value fast. Those who have bought in 2008, over one-third already have negative equity. Negative equity statistics like this will contribute further to the current foreclosure mess. Below is a chart that shows the median home price trend in Bakersfield for the last few years.


Click on the image below for a larger view.

Opportunities in Stockton,CA

Over the last year, we have seen many reports that Stockton, California is ground zero for the foreclosure mess. I decided to take a look to see if the FHA programs put in place last year have helped Stockton rebound at all.

Take a look at the chart below and click for a larger image.

As you can see from this chart, the FHA loan originations have increased dramatically since the beginning of this year. One lender that seems to be taking advantage of this opportunity is Wells Fargo.

Click on the chart below for a larger image.

Any other guesses on who else is taking advantage of this opportunity of getting homeowners who are struggling into more affordable products?

Prince William County Virginia - Home Prices in Free Fall!

I found this dialogue amusing and as useful as any analysis of Case-Shiller home price data. The idle chat provides a description of home price declines in one market in Virginia. Some posters contend that the crack down on illegal immigrants exacerbate foreclosures and housing prices. If that is the case then perhaps we might all benefit by being a little nicer to our immigrant neighbors!

Just for fun!! These quotes were copied from the link.

• .....Seems like there was some really irresponsible lending going on
  there.

  Let's just say if the price charts were a ski slope--it would truly be "experts only."

  Let's say if Dumfries and Manassas combined, and they changed to Dumassas

Foreclosures Up Again!

Foreclosures are up again last month. Nevada is leading state with one out of every 43 homes. Who were the subprime lenders doing the most business in Nevada in 2007 that contributed to this mess? As the new housing legislation makes its way to the President's desk for signature, will these numbers finally level off in the latter part of this year? The Congressional Budget Office estimates that about 400,000 borrowers will benefit from the program. What do you think?

Fingerprint Registry in the Foreclosure Prevention Act of 2008

Can anyone provide a coherent explanation why this bill includes capturing fingerprints and other private information on mortgage originators? See section 1505. Am I crazy or what? How does fingerprinting mortgage originators help financially distressed homeowners stay in their homes?

Foreclosured Bank REO with the Worst Curb Appeal

The HousingWire reported that FDIC warned its insured institutions to maintain real estate it owns. I thought I would take a look and see if Countrywide HL's REO appear to comply with the FDIC warning and regulations. They do comply!!

A bunch of properties were clustered in the Manassas, VA. The 10 properties I saw have more than acceptable curb appeal. The photo is the worst case I found. It is not so bad. In fact it appears that they are working to improve the appeal of the property shown.

It would be great readers emailed ( mortgageinfo at cbmiweb.com ) photos telling us the city/town and the institution that owns the property. If sufficient proof of ownership is provided along with a photo, we will post it here.

Thank You Fairfax Board Chairman Connolly !!!

These days leadership seems so scarce. While millions loose homes to foreclosure and neighborhoods are blighted by the rise of abandoned and trashed home, our inept President and our "do nothing" congress offers nothing to bring relief to the escalating problem. Fairfax County (Virginia) Board Chairman Gerald Connolly demonstrated bold leadership by arranging for Fairfax County to purchase these properties and offer low interest loans to new owner occupants. This effort provides a reasonable approach to reduce abandon properties, maintain quality neighborhoods, and provide some affordable housing Fairfax County. Finally someone is doing something.