Smooth sailing...or is there another swell looming ahead??

The housing market is facing more and more homeowners who are 90+ days delinquent but have yet to lose their homes, this is threatening a new wave of foreclosures that could hit just as the real estate market has begun to stabilize.
Approximately 7 million properties could be heading for foreclosure. Some economists think it could take almost three years before all these homes have been put on the market and purchased by new owners. The number of pending foreclosures could grow much bigger over the coming year as more distressed borrowers become delinquent and then if they can't get a loan modification, go through the foreclosure process, which can take up to a year to complete. When these foreclosed properties add to the supply of homes for sale, they could add to a decline in housing prices, which have increased slightly through April. That rise was partly because of the tightened flow of foreclosed homes into the market and the $8000 First Time Buyer Tax Credit. Perfect example of supply and demand, a lot of buyers and not enough inventory.
The rate of seized properties, for example, peaked in the middle of 2008 and fell steadily last year, but the banks expect foreclosures to increase this year, nearly doubling to 45,000 by the fourth quarter.
So the positive housing data may not be signaling a true bottom, as many servicers are holding back on foreclosures and the distressed houses are not yet being offered for sale. It could take almost 3 years to clear the backlog.
While banks foreclosed on fewer homes in February than a month earlier, borrowers continued to fall behind on their payments, adding to the inventory of properties headed toward foreclosure that have yet to be put on the market.
The shadow inventory reflects the increasing lag between defaults and foreclosures. Many lenders are struggling to keep up with the overwhelming number of borrowers who aren't making their payments, they're hesitant to rush in and foreclose, which would mean adding more homes onto the market, bringing prices into decline once again.
If you or anyone you know, would like to avoid foreclosure and know your options, please feel free to contact me.

SHADOW INVENTORY...This Market Is A Crap Shoot!

SHADOW INVENTORY...This Market Is A Crap Shoot!
That's all I hear...Shadow Inventory. The rate of distressed homeowners is still increasing. The amount of foreclosures is at an all time high in San Diego - 19,543. That is our Shadow Inventory, almost growing like a mold. Not black but RED. Homes that have been foreclosed on and yet not listed for sale. I see them all over the community. When I take buyers out for viewing properties they want to know if I know when that property is coming on the market. If I know anything about it. I can't tell them a heck of a lot if it's not listed yet. Used to be you could really spot them quickly...dead grass, tall weeds and tons of newspapers and "help" advertisements littering the driveways and doorsteps. Now, it's more controlled, the HOA's or the list agents are fined for leaving a yard go without maintenance. The neighborhoods are looking greener and the streets tidy...still the Shadow Inventory lurks like mold, waiting to be cleaned up.

Whose going to do the cleaning up? Politicians with their moratoriums and bail out programs? A high percentage of loan mods don't work and if they do not for very long. We as Realtors all wait to see the latest and greatest new programs to help, but it's not working.

I say open the trickle of foreclosed homes to a steady flow. We all know there are plenty of buyers wanting to purchase these homes. Why have homes with 30-60 offers on them when the house next door is waiting, empty and available? So it's all a crap shoot as to where this market will really go this year. Here in San Diego the best thing to do is loosen the comps, tighten the closing costs credit and put your best loan forward cause it doesn't seem to be getting any easier. Gone are the low balling days and getting 3+ % in closing costs credit. I know I'll find my buyers great properties to come home to at night. It's just going to take a little more time and patience on everyone's part.