Sold on Sacramento

Time is up on California’s 90 Day Foreclosure Freeze

The state of California had a great idea introduce Senate bill 1137, and solve the states foreclosure problem using the brute force of Governor Schwarzenegger and the state senates pen. What was the goal? the pitch was that they were going to give lenders time to put systems into place to modify mortgages, create programs council people in default, create community incentives to buy, AND delay the inevitable.

Most of us in the industry knew that this bill would have little to no effect on the actual problem. Like most government ideas it failed to address the single biggest factor. Distressed homeowners need their situation to change, in most cases a curtailment of income was the number one problem. The ARM loans that keep adjusting are also a key factor. Most of those loans are tied to the U.S Prime rate, currently the prime rate is 3.25 % so actually the prime is low. However the three or five year bump is what is causing those loans to move up. The big SB 1137 promise that never happened was the supposed increase in loan mods. With all of the people I talk to on a daily basis about the current Sacramento Real Estate market I still have not seen or heard of a real increase in lender communication and loan modification.

So here we are heading into 2009. This week the Notice of Default and Notice of Trustees sale filings are up way up. Using stats from Foreclosure Radar the number is around 44 % or 19, 444 houses in August, and 28, 189 houses in November. That is huge. For a Realtor out on the street we are already seeing new REO properties coming onto the market. I predict that moving into the new year we will see inventories increase significantly. No doubt that I will be helping buyers and investors find great deals on bank owned properties.

I am always concerned about my clients,  I have been fortunate to have the best clients on earth. They refer friends and family to me and always have something good to say. I appreciate all of the kind words but at the end of the day I’m just trying to do my best to help satisfy needs and solve problems. I know that all of these Notice of Default fillings will effect some of my clients and people that they know. There are options for people facing foreclosure. The key is to take a proactive approach and call a trusted Sacramento area Real Estate Professional.

This entry was posted on Friday, December 19th, 2008 at 1:06 pm and is filed under Buyer Info. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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