Two different courts in California have upheld foreclosures by MERS corp.
The court ruled the statute cited by plaintiffs to prove an improper foreclosure applies only to mortgages, not deeds of trust, and other state laws give MERS authority to foreclose.
With the battles that have preceded these decisions, I would not expect that the issue will be soon resolved. And, it may, or may not have any impact on any Nevada laws.
Here’s a podcast with peter Padilla and Leslie Henderson discussing short sales.
Henderson & Padilla: Ease The Pain of Short Sales & zero down on the VA Mortgage! May 15, 2011 by NevadaRealEstateRadio
The further along we get int this foreclosure debacle, and the lower we see the home prices fall, the more likely we will encounter a strategic default.
A strategic default is when a homeowner can afford to make the payments on a home in foreclosure, but strictly for financial reasons chooses to default.
Fair Isaac, the credit rating agency, thinks that they have learned the profile of the strategic defaulter.
The strategic defaulter has a significantly different credit profile from someone that’s a distressed owner.
The credit assessment firm FICO says it’s developed a method, using consumer behavior analytics, that will allow lenders to identify borrowers who are a risk for strategic default.
Read more about strategic defaults.
The Median price for homes in the Reno/Sparks area is now $5000 below 2009.
The RGJ reports that Reno home prices continue to fall. Buyers are sensitive to price (is that a surprise?). Both home prices and the number of homes sold were lower than last year.
Incline Village was the exception with the sale of 36 condos.
I try to link to any story, but I was not able to find this on line. This story appeared in the Sunday print edition. The RGJ seems to want to have some of its content “Only In Print.” Are they ashamed of their product?
Have you ever submitted an offer to purchase a HUD house, and then you learn that it was purchased by a governmental agency for less than you offered?
Apparently HUD has been selling REO properties to local government agencies and non-profits for less than the market price.
Those agencies participating in the Neighborhood stabilization Program will get to buy the properties at 10% below appraised price.
The new initiative will also give these buyers a 14-day first-look period to consider buying the property ahead of investors. HUD secretary Shaun Donovan announced the new initiative at the National Council of La Raza annual conference in San Antonio, Texas.
Our government has done such a good job with everything else it’s tried. What else could go wrong.
Do you think local governments should be competing with citizens in the real estate and housing business?
The economic problems in Spain seem so far away, so why should we be concerned? The world has discovered Spain and has found a major economic basket case. What if Spain is but a preview of what could happen here on the US, and more specifically here in Nevada?
This article describes Spain’s dire situation and says the party is about to end.
In Spain, huge projects are completely empty and bad debts mounts as the Spanish banks play extend-and-pretend with developers. That game is about to end.
Developer loans are coming due. Yet, there is no way for developers to make interest payments let alone pay any principal. When developers collapse in 2011, banks will be stuck with a vast amount of undeveloped land at overvalued prices as well as ghost towns so far outside of major towns that no one will live in them.
A flood of inventory awaits a dearth of buyers. Moreover, a huge amount of shadow-inventory is waiting on deck, hoping for better prices so the owners can bail. Unfortunately there is no one to bail to. Spain’s official unemployment rate is 20%, and it’s quite likely the real unemployment rate is higher.
Can you see any parallels with Reno, our unemployment rate, perhaps? I recognize that it is not quite 20%, officially, that is. Can you see any signs that things are about to change? The local media have stories that we are about to turn the corner. Who would you want to trust?
With the large number of foreclosures that have taken place in Nevada the banks have resorted to auction companies to dispose of their large inventories of REO properties. REDC is one of these companies.
I have, in the past, purchased properties through REDC andfound the process painless. However, I have had reports recently, that a winning bid merely constitutes a place for the banks to begin the negotiation process to sell their REO’s.
One buyer told that the bank eventually accepted the price of their winning bid
now, here is an article that tells of a “quick” closing transaction through REDC. It only took 51 days to quickly close the cash sale.
It was still a profitable deal.