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April 2010 Nationwide Foreclosure Report

RealtyTrac®, an online marketplace for foreclosure properties, released its U.S. Foreclosure Market Report™ for April 2010, which shows that foreclosure filings — default notices, scheduled auctions and bank repossessions — were reported on 333,837 properties in April, a 9 percent decrease from the previous month and a 2 percent decrease from April 2009. One in every 387 U.S. housing units received a foreclosure filing during the month.

“There were two important milestones in the April numbers that show foreclosure activity has begun to plateau — but at a very high level that will not drop off in the near future,” said James J. Saccacio, chief executive officer of RealtyTrac. “April was the first month in the history of our report with an annual decrease in U.S. foreclosure activity. Secondly, bank repossessions, or REOs, hit a record monthly high for the report even while default notices dropped substantially on a monthly and annual basis. We expect a similar pattern to continue for most of this year, with the overall numbers staying at a high level and ripples of activity hitting the various stages of the foreclosure process as lenders systematically work through the backlog of distressed properties.”

Foreclosure Activity by Type

During the month a total of 103,762 properties received default notices (NOD, LIS), a decrease of 12 percent from the previous month and a decrease of 27 percent from April 2009 — when default activity peaked at more than 142,000.

Foreclosure auctions (NTS, NFS) were scheduled for the first time on a total of 137,643 properties during the month, a decrease of 13 percent from the previous month — when auction activity peaked with more than 158,000 properties scheduled for auction for the first time. Auction activity was up 1 percent from April 2009.

Bank repossessions (REOs) hit a record monthly high for the report in April, with a total of 92,432 properties repossessed by lenders during the month — an increase of 1 percent from the previous month and an increase of 45 percent from April 2009. Bank repossessions were less than 1 percent above their previous peak of 92,182 in December 2009.

Five states account for more than 50 percent of national total

California, Florida, Michigan, Illinois and Nevada accounted for 52 percent of the national total. California led the way, with 69,725 properties receiving a foreclosure filing — although that total was down 25 percent from the previous month and down nearly 28 percent from April 2009.

California posted the nation’s fourth highest foreclosure rate, with one in every 192 housing units receiving a foreclosure filing, and Utah posted the nation’s fifth highest foreclosure rate, with one in every 221 housing units receiving a foreclosure filing.

Foreclosure activity in Modesto, Calif., decreased 32 percent from April 2009, but the metro still posted the nation’s second highest foreclosure rate, with one in every 101 housing units receiving a foreclosure filing during the month. Other California cities in the top 10 were Merced at No. 3 (one in every 104 housing units); Stockton at No. 5 (one in 108); Riverside-San Bernardino-Ontario at No. 6 (one in 110); Vallejo-Fairfield at No. 8 (one in 117); and Bakersfield at No. 9 (one in 120).

Read RealtyTrac’s full report

Zillow Reports Redding Home Values Up Slightly

According to Zillow’s Real Estate Market Reports for March 2010, Redding home values were Up 0.23% compared to February 2010 and down 13.97% compared to March 2009.

I am not sure how accurate the numbers from Zillow are, but it is interesting to track.

April 2010 California & Shasta County Foreclosure Report

ForeclosureRadar.com just released its April 2010 California Foreclosure Report. Their report is statewide and broken down by county. Here are some of the stats from Shasta County.

Notice of Defaults, the start of the foreclosure process, increased by only one notice. April 2010 had a total of 150 NOD’s filed compared to last month’s 149.

The number of homes in Shasta County that had a Notice of Trustee’s sale filed, stayed exactly the same at 129 notices.

There were a total of 81 trustee’s sales down from last month’s 98. The banks took back 76 homes as REO’s and only 5 homes sold to a 3^rd party investor.

There are currently 167 REO / Bank owned properties for sale on the Shasta County MLS with 68 REO / Bank owned homes selling last month.

Highlights from the statewide report:

Foreclosure filings were down in April for the first time since the beginning of the year.
Despite the decline in filings, the inventory of properties in preforeclosure or scheduled for sale only dipped slightly as the drop in filings were offset by an increase in the time to foreclose.
Cancellations continue to climb, up more than 32 percent from the beginning of the year.
The number of properties sold to 3rd parties also continues to climb, helped again this month by slightly better discounts.

Download the full report at Foreclosure Radars website.

Bank Must Produce The Note?

Dear Bill Parsons,

You asked me to look into the rumors that people who are under water in their homes can get out of their debts, stop foreclosures, and even cancel their home mortgage by going to court. Those rumors are all over the Internet and even in seminars right now and all I can tell you to advise the people who come to you is:

Beware of False Hope and Help. Banks Do Not Have to Prove Note in California Foreclosures.

People who have received Notices of Default, Notice of Sale or who are in trouble with their mortgages are being misled by Internet and other promises that they can get out of their mortgage by suing the banks and loan servicers.

Most of the false promises urge people to go to court and to make the bank or their agent produce the actual note upon which the debt is owed.

The common denominator is that the people making these false promises refer to court cases from Ohio or other states, including the federal courts in other states, to convince people to hire them or to attempt to get out of their mortgage by filing a case in California’s state and federal courts to get rid of the mortgage and stop a foreclosure — How? By saying the bank must prove it has the original note or a copy.

The false promisors then claim that the court can void the note or loan if the bank or their agent does not have the note. URGENT: PLEASE READ THE FOLLOWING FROM A JANUARY 2010 CASE IN THE NORTHERN CALIFORNIA FEDERAL COURT: IN CALIFORNIA AND OTHER WESTERN STATES THE BANK OR THEIR AGENT DOES NOT HAVE TO PRODUCE THE ORIGINAL NOTE OR A COPY IN COURT TO ENFORCE A FORECLOSURE. DO NOT PAY ANYBODY MONEY TO TRY TO GET OUT OF YOUR MORTGAGE UNLESS YOU HAVE RESEARCHED ALL THIS AND HAVE CONSULTED WITH ANOTHER ATTORNEY.

William O. Davis, attorney at law, Redding, CA 530-242-1275

Cases to be aware of:

Newbeck v. Washington Mut. Bank
Slip Copy, 2010 WL 291821
N.D.Cal.,2010.
Jan 19, 2010 (Approx. 5 pages)

Even if they alleged tender, the basis on which they appear to seek relief does not support their claim. In California, there is no requirement that a trustee produce the original promissory note prior to a non-judicial foreclosure sale. See, e.g., Pantoja v. Countrywide Home Loans, Inc., 640 F.Supp.2d 1177, 1186 (N.D.Cal.2009); Smith, 2009 WL 1948829, at *3; Neal v. Juarez, 2007 WL 2140640, *8 (S.D.Cal.) (citing R.G. Hamilton Corp. v. Corum, 218 Cal. 92, 94, 97, 21 P.2d 413 (1933); Cal. Trust Co. v. Smead Inv. Co., 6 Cal.App.2d 432, 435, 44 P.2d 624 (1935)). California Civil Code Sections 2924 through 2924k “provide a comprehensive framework for the regulation of a non-judicial foreclosure sale pursuant to a power of sale contained in a deed of trust.” Knapp v. Doherty, 123 Cal.App.4th 76, 86, 20 Cal.Rptr.3d 1 (2004) (quoting Moeller v. Lien, 25 Cal.App.4th 822, 830, 30 Cal.Rptr.2d 777 (1994)). Knapp explains the non-judicial foreclosure process as follows:
Upon default by the trustor [under a deed of trust containing a power of sale], the beneficiary may declare a default and proceed with a nonjudicial foreclosure sale. The foreclosure process is commenced by the recording of a notice of default and election to sell by the trustee. After the notice of default is recorded, the trustee must wait three calendar months before proceeding with the sale. After the 3-month period has elapsed, a notice of sale must be published, posted and mailed 20 days before the sale and recorded 14 days before the sale.

Knapp, 123 Cal.App.4th at 86, 20 Cal.Rptr.3d 1 (citation omitted). “A properly conducted nonjudicial foreclosure sale constitutes a final 13 adjudication of the rights of the borrower and lender.” Id. at 87, 20 Cal.Rptr.3d 1.

Plaintiffs have not pointed to controlling authority to show that this statutory scheme requires production of the original promissory note or deed of trust. Thus, even if they alleged tender, to the extent that they allege irregularities in the foreclosure sale based on Washington Mutual’s failure to produce the original promissory note or deed of trust, they do not state a claim.

Plaintiffs cite various out-of-state cases, which apply non-California law to judicial foreclosure actions. See In re Foreclosure Actions, 2007 WL 4034554 (N.D.Ohio); In re Foreclosure Cases, 2007 WL 3232430 (N.D.Ohio); Landmark Nat’l Bank v. Kessler, 289 Kan. 528, 216 P.3d 158 (2009); U.S. Bank Nat’l Ass’n v. Ibanez, 2009 WL 3297551 (Mass.Land Ct.). Because these cases do not apply California’s non-judicial foreclosure sale statutes, they do not support Plaintiffs’ position.

Accordingly, the Court dismisses Plaintiffs’ claim for “Equitable Set Aside Foreclosure Sale” with leave to amend to allege tender or the ability to offer tender and to plead facts that warrant setting aside the foreclosure sale V. Claim for Declaratory Relief. The Declaratory Judgment Act (DJA) permits a federal court to “declare the rights and other legal relations” of parties to “a case of actual controversy.” 28 U.S.C. § 2201; ee Wickland Oil Terminals v. Asarco, Inc., 792 F.2d 887, 893 (9th Cir.1986). The “actual controversy” requirement of the Declaratory Judgment Act is the same as the “case or controversy” requirement of Article III of the United States Constitution. Am. States Ins. Co. v. Kearns, 15 F.3d 142, 143 (9th Cir.1993). Plaintiffs’ declaratory judgment claim fails because they have not alleged facts showing that there is an actual case or controversy. As noted above, the foreclosure sale has already been completed, which operates as a final adjudication of the rights among the parties. Unless Plaintiffs plead facts that show actionable irregularities in the foreclosure sale or any other reason to believe that the ownership of the property is in genuine dispute, declaratory relief is not necessary. Accordingly, the Court dismisses Plaintiffs’ declaratory judgment claim with leave to amend to plead a cognizable case or controversy.

Pending Home Sales Up For Third Consecutive Month

National Association of Realtors reported today that Pending home sales increased in March for the third straight month.

The National Association Of Realtors Pending Home Sales Index (PHSI) is a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0; this follows an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, said favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

The PHSI in the Northeast declined 3.3 percent to 75.1 in March but remains 27.2 percent higher than March 2009. In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago. Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009. In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Read the full report at the National Association of Realtors website.

Fannie Mae Improves “First Look” Program for REO Property Sales

First Look program helps owner occupant home buyers get first opportunity over investors to buy Shasta County bank owned (REO) properties.

Fannie Mae’s First Look, initially started in late 2009, is designed to provide owner occupants a “first look” at Fannie Mae homes. Under this policy, Fannie Mae will only consider offers from owner occupants and buyers using public funds during the First Look marketing period which is typically the first 15 days a property is listed. If the property is still for sale after the First Look Marketing period expires, investor offers may be submitted and will be considered. Properties in the First Look marketing period will have a timer with the number of days remaining on the Fannie Mae Home Path property details page.

To start searching for Foreclosures and Bank owned properties in Redding and Shasta County.