Bay Area Short Sale Center » Banks

Bay Area foreclosures drop sharply

Istvan Fekete — Fri, 13 Jan 2012 16:32:56 +0000

The San Francisco Bay Area has joined the line of the states with dropping foreclosure filings. Although the reason behind the drop can be the holiday foreclosure seizure, it is still encouraging.

RealtyTrac released its monthly report and annual look-back recently, covering the nine-county Bay Area housing market. According to the press release, RealtyTrac believes that rising number of short sales and the robo-signing scandal are the main factors behind the decline of foreclosure filings.

The numbers are the following: Alameda, Contra Costa, Santa Clara and San Mateo county foreclosure dropped 20% from 2010, while in the whole state of California dropped 21% and nationwide 34%.

Santa Clara County reported 1,234 foreclosures for December, a 38% decline from November’s 2,012 foreclosures and down 27% from the 1,691 foreclosures in December 2010.

Last year, Contra Costa County had the highest rate of foreclosures in the South Bay and East Bay, with slightly more than 4% of all homes, or one in every 24. San Mateo County had the lowest rate of foreclosures – one in every 60 homes, or about 1.7%. In Alameda County, 2.7% of all homes had some kind of foreclosure action in 2011, while less than 2% of Santa Clara County homeowners were affected, the Contra Costa Times writes.

Elliston Vineyards has a new life after foreclosure

Istvan Fekete — Fri, 07 Oct 2011 15:00:08 +0000

Elliston Vineyards, a 121-year-old complex has now a new owner: a joint venture of Asia investors. After paying down $1.75 million in cash, the four investors are reportedly ready to plunk down more money to renovate the complex and keep it operating as a winery and event center.
“They like the property, they feel the land is valuable and that the building has historical value,” Wang said.
Donna Flavetta, the longtime primary owner of the 8.5-acre property until it was seized through a foreclosure in August 2010, is expected to continue to operate the business as a tenant. Lender CMR Mortgage sold the complex to the new owners.
“This is good for the winery,” Flavetta said. “Things are still in the early stages. But the plan, at this point is to upgrade the winery.”
Burdened by heavy debt because of mortgages on the property, Flavetta put the six-building site up for sale in 2008, with Triska handling the marketing. The asking price at that time was $5 million, with a $4.3 million mortgage against the property. By mid-2010, the asking price was down to $3.25 million. Recent attempts to auction off the property for about $2 million failed.

Banks prefer cash not a loan

Istvan Fekete — Mon, 12 Sep 2011 15:24:47 +0000

The case of Jack and Donna Pfister pictures what is happening these days in the Bay Area housing market.
The couple got good news about their bid topping all others on a foreclosure in Vacaville, so they started making preparations for moving in. But several days after the good news, the were told the bank decided to go with an all-cash buyer. The top of the bad news was that the investor’s offer was $25,000 less than the $475,000 offered by Pfisters.
And this isn’t an isolated case in San Francisco Bay Area. According to DataQuick’s latest report, more than 20% of all homes sold in July were purchased by absentee buyers, mostly investors looking for rentals or properties to fix up and sell. About six out of 10 absentee buyer transactions (which can also involve second-home purchase) were all-cash purchases. In July 2010, absentee buyers accounted for 17.4 percent of home sales, and the average for all months since 2000 is 13.8%.
Now it is becoming obvious the banks – who claim to have all the money – prefer all-cash buyers because these deals close faster than a transaction involving a loan.
“The investor has the cash wherewithal to be able to close on the property without the risk of the seller worrying about whether the buyer can get the loan or not,” said Mike Sibilia, another South Bay broker with Keller Williams.

The priciest foreclosure in Laguna Beach

Istvan Fekete — Mon, 05 Sep 2011 15:00:19 +0000

One of the priciest foreclosures in the country is located in Laguna Beach and it is available for an astonishing price of $18 million. This includes a nearly $2 million discount, and it is located at 31401 Mar Vista Avenue.
The luxury real estate has 4 bedrooms, 4 bathrooms, 11,333 square-feet of living space and a 11.77-acre lot and multiple levels. Considering the garages, patios and terraces, the usable square footage is reaches 18,000 square feet, which males the property the second largest home fore sale in Laguna.
At the time of it construction in 2009 the property was in escrow for $28 million. But the deal fell through so, when the construction completed in 2010, it went back to its lender.
The listing description looks like this “Villa Mar Vista, a sublime junction of privacy, acreage, generous interiors, tasteful design, plentiful outdoor spaces and vast coastal vistas firmly secures this new-construction compound as the finest estate in prestigious Laguna Beach. Every opportunity for coastline and Catalina Island views is taken and enhanced by craftsman windows and French doors that flow into the fruit and native plant laced gardens and terraces for years round indulgence in the celebrated coastal climate. Amenities include an infinity edge pool, spa, all en suite bedrooms, garaging for 20 cars, theatre room and an atrium foyer. The 11.77-acre parcel abuts another 40 acres of open space for the ultimate in privacy, views and artful living.”

Bay Area housing market update

Istvan Fekete — Fri, 26 Aug 2011 15:00:39 +0000

Properties priced $500,000 or above accounted 35.3% of Bay Area homes sales, the latest report from DataQuick notes. This is a more than 2% decline from June, when properties in that price range accounted 37.7% of all home sales. The All time low for the current cycle was in January 2009, when just 22.7% of sales crossed the $500,000 threshold, DataQuick reported.
Investors purchased around 21.2% of the total Bay Area homes sold in July, a 20% increase compared to June, and up 17.4% from a year ago. The peak was 23.4% in February this year, while the monthly average since 2000 is 13.8%. These buyers paid a median $236,000 in July, $1,000 more than a month prior, but down from $269,250 a year ago.
All cash sales accounted 26.3% of July sales, a 0.3% increase from June and up from 25.1% reported in July 2010. The record was 30.5% this February, while the monthly average is 11.9% since 1988, DataQuick noted.

Bay Area housing market slows down

Istvan Fekete — Mon, 22 Aug 2011 15:00:32 +0000

The political show influenced the Bay Area housing market: after strong month-to-month sales gain the area for previous months, July was unusually weak. Home sales were down especially for homes above $500,000 but edged higher than July of 2010.
According to DataQuick’s recent report, a total of 6,887 new and resale houses and condominiums changed ownership in the San Francisco Bay Area, which is a nearly 14% drop since a month prior when a total of 7,998 homes sales were reported.
A decline from June to July is normal for the season, with that dip averaging 6.8 percent since 1988, when DataQuick’s statistics begin. July sales have varied from a low of 6,666 in July 1995 to 14,258 in 2004. Last month’s sales were the third-lowest on record for a July, behind July last year and in 1995, and fell 26.8% below the average July sale tally.
“Last year’s tax credits were by and large gone by July, so last month’s year-over-year comparison is pretty much apples and apples. We’re still looking at a dysfunctional market. Distribution curves are lopsided, bottom-feeding is still prevalent and the lending market is just plain weird. We’re off bottom by all metrics, but far from anything resembling normal,” said John Walsh, DataQuick president.
Foreclosures accounted 26.6% of July’s total sales, a slight increase from a revised 26.1% in June and up 1.3% from a year prior. Short sales made up an estimated 18.8 percent of Bay Area resales last month. That was up from an estimated 17.9 percent in June, 17.2 percent a year earlier, and 14.4 percent two years ago.

Negative equity on the rise in Bay Area

Istvan Fekete — Mon, 15 Aug 2011 15:00:26 +0000

The number of Bay Area homeowners who are underwater is up 22.8% compared to a year ago, Zillow’s recent report highlighted.
“Negative equity is growing because you still have foreclosures happening so the housing values are still declining,” said Svenja Gudell, senior economist for Zillow. “As home values decline, negative equity will increase.”
Alameda County reports 20.2% of homes underwater, a 2.5% increase from 17.7%, and in Solano County, 55.4% of homes were underwater, up from 51.5%.
However, not all areas were affected; for instance Santa Clara County, recorded a drop in negative equity as 12% of homes are underwater, while a year ago there were 12.8%.But the report shows Santa Clara as an exception. San Mateo County recorded a 3% rise in negative equity with its 13.7%, up from 10.7% reported in Qs of 2010. .
“Negative equity is still among us. We are still surrounded by it,” said Jeff Pereyda, a broker-realtor with Tri-City Real Estate Brokers in Fremont. “Some are in negative equity and don’t need to sell. Some are in negative equity and need to sell. We’re seeing only the ones that need to sell.”

Bay Area foreclosure activity down

Istvan Fekete — Fri, 12 Aug 2011 15:00:18 +0000

Fewer Bay Area homeowners received notice of default in July than a year ago, but the improvement is not a sign that the housing crisis is slowing.
This drop is due to an increase in short sales and loan modifications, said Daren Blomquist, manager of communications and marketing for RealtyTrac.
“It’s because foreclosure-prevention programs are having a bigger impact. The problem with that is that unless the economy and home prices and unemployment improves, those foreclosure-prevention programs, at the end of the day, are really short-term Band-Aid solutions,” Blomquist said. “There is still a lot of risk baked into the market.”
In Santa Clara County, 593 notices of default went out, down 22% from last month, and down 14% from a year ago. Another 294 homes became bank-owned, up 5% from June, but down 1% from 2010. In San Mateo County, 228 default notices were handed over, down 45% from June, but up 3% from last year. Banks repossessed 75 homes, 20% less than a month ago and a 23% less than a year ago.
Throughout the Bay Area, some 2,081 homeowners got a notice of default, a 34 percent decline from a year ago, said the report. Another 1,072 homes were taken back by banks, a 27 percent drop.
“The delays that started with robo-signing kind of bought homeowners some time and caused lenders to take a second look at some of these foreclosure-prevention programs,” said Blomquist.

San Rafael condos face possible foreclosure

Istvan Fekete — Mon, 08 Aug 2011 15:00:35 +0000

A 82-unit condominium complex has defaulted on its $35 million loan, which means that a possible foreclosure is at the horizon.
In addition to the bank’s lawsuit, another 19 subcontractors who worked on the property have filed complaints against San Rafael-based Monahan Pacific Corp., the project’s developer. These subcontractors demand $2.8 million in unpaid fees.
“I believe that a receiver is necessary to take possession of 33 North because the property needs to be completed,” Jeffrey Koehler, a vice president at U.S. Bank National Association, said in July 1 court papers. “I have toured the property and while it is largely constructed, there is still significant work that needs to be done to finish the property.”
Now Monahan is facing a foreclosure lawsuit filed by Bank of America, which requests a foreclosure sale to recoup its $33 million on the project loan.
On the other side Tom Monahan, president of Monahan Pacific, said “the economic downturn’s deleterious effect on the housing market spurred the money woes and lawsuits surrounding my company. Housing has been hit very hard,” he said. “Everybody has to protect their legal rights, and we have legal rights and they have legal rights,” Monahan added. “There’s two sides to every story, and I think generally speaking in a healthy, robust economy things go better and in a downturn economy I think people run to their lawyers.”
Now Monahan is still negotiating with the lender and hopes to reach an amicable agreement.

Former Hercules City Manager’s home in pre-foreclosure

Istvan Fekete — Fri, 05 Aug 2011 14:00:58 +0000

Nelson Oliva, former Hercules City Manager sank into financial crisis, so he put his Hercules home for sale.
The six-bedroom, five-bathroom house, built in 2003 on Nautical Cove in the Victoria by the Bay neighborhood, is listed at $549,999.
The listed property is in pre-foreclosure. “The bank is holding off on foreclosure while it considers a recent offer by a prospective buyer,” said Viktor Manrique of Realty World in Hercules.
Oliva is the second Hercules city manager that goes into pre-foreclosure this year. The Railroad Avenue house of Mike Sakamoto, Oliva’s predecessor, was on the market for a possible short sale in the spring. It appears to have recently gone into foreclosure, according to industry records.
The home in pre-foreclosure was purchased by Oliva in spring of 2007 shortly after the began his four-year stint with the city. The price of the property was than $918,500 records show. He paid the amount with the help of a $250,000 relocation assistance loan from the city and a $668,500 mortgage.