Los Angeles Real Estate Market Showing Signs of Recovery
Releasing the Metro Market Report™ figures, Serdar Bankaci, founder of Default Research Inc, said that notices of default were the first stage in the foreclosure process and were a good forward indicator for the real estate and foreclosure markets.
Good news for the Los Angeles County property market is that the latest foreclosure data from Default Research Inc, a leading online provider of pre foreclosure listings (http://www.defaultresearch.com) and information, shows a decline in the number of notices of default for certain residential and commercial properties.
Thursday, April 29, 2010
Wednesday, April 21, 2010
Los Angeles Real Estate Market Showing Signs of Recovery
Los Angeles Real Estate Market Showing Signs of Recovery
Releasing the Metro Market Report™ figures, Serdar Bankaci, founder of Default Research Inc, said that notices of default were the first stage in the foreclosure process and were a good forward indicator for the real estate and foreclosure markets.
Although foreclosure sales continue, the long term outlook is good. A drop of almost 22% is a positive indicator for the Los Angeles real estate market
Los Angeles, CA (PRWEB) April 21, 2010 -- Good news for the Los Angeles County property market is that the latest foreclosure data from Default Research Inc, a leading online provider of pre foreclosure listings and information, shows a decline in the number of notices of default for certain residential and commercial properties.
Releasing the Metro Market Report™ figures, Serdar Bankaci, founder of Default Research Inc (defaultresearch.com), said that notices of default were the first stage in the foreclosure process and were a good forward indicator for the real estate and foreclosure markets.
According to Bankaci, the number of notices of default decreased from 33,767 in Q4 of 2009 to 26,388 in Q1 of 2010.
“Although foreclosure sales continue, the long term outlook is good. A drop of almost 22% is a positive indicator for the Los Angeles real estate market,” he said.
Bolstering the figures, the report further indicates that the number of single family notices of default dropped by five percent to 16,549 in Q1 of 2010 and condominium foreclosures decreased almost 11% to 5,312. Commercial properties followed the trend and saw a dramatic decrease from 687 properties in Q4 of 2009 to 92 in Q1 of 2010 – a drop of more than 86%.
The top five cities in the region with the highest number of notices of default in Q1 of 2010 were Los Angeles (8,528), Palmdale (2,146), Long Beach (2,081), Lancaster (1,984) and Whittier (1,020).
One factor that may have had an effect on the reduction in defaults is the passing of Senate Bill 1137 in July 2008, which aimed toward addressing the adverse effects of the state’s high foreclosure rate. The bill effectively increased the time taken to foreclose from less than five months to approximately seven to eight months. This has given property owners more time to consolidate and seek counseling in order to avoid foreclosure in the current economic downturn.
Default Research Inc's Metro Market Report™ provides accurate information on the number of unique notice of default filingsper county. Individual properties are counted once only during the prior twelve month period, thus making the statistics more precise than counting each property every month.
More about Default Research Inc.
Since 2004, Default Research Inc has been providing the freshest and most accurate pre foreclosure listings and statistics to real estate professionals and investors. Default Research Inc's proven data collection and efficient distribution methods result in pre foreclosure lists being available two to three weeks ahead of competitors.
Default Research Inc currently abstracts and reports data in the five critical states highest in foreclosures: Arizona, California, Florida, Michigan, and Nevada. Default Research Inc reports pre foreclosure documents days after being recorded. More information about Default Research Inc can be found: defaultresearch.com.
Releasing the Metro Market Report™ figures, Serdar Bankaci, founder of Default Research Inc, said that notices of default were the first stage in the foreclosure process and were a good forward indicator for the real estate and foreclosure markets.
Although foreclosure sales continue, the long term outlook is good. A drop of almost 22% is a positive indicator for the Los Angeles real estate market
Los Angeles, CA (PRWEB) April 21, 2010 -- Good news for the Los Angeles County property market is that the latest foreclosure data from Default Research Inc, a leading online provider of pre foreclosure listings and information, shows a decline in the number of notices of default for certain residential and commercial properties.
Releasing the Metro Market Report™ figures, Serdar Bankaci, founder of Default Research Inc (defaultresearch.com), said that notices of default were the first stage in the foreclosure process and were a good forward indicator for the real estate and foreclosure markets.
According to Bankaci, the number of notices of default decreased from 33,767 in Q4 of 2009 to 26,388 in Q1 of 2010.
“Although foreclosure sales continue, the long term outlook is good. A drop of almost 22% is a positive indicator for the Los Angeles real estate market,” he said.
Bolstering the figures, the report further indicates that the number of single family notices of default dropped by five percent to 16,549 in Q1 of 2010 and condominium foreclosures decreased almost 11% to 5,312. Commercial properties followed the trend and saw a dramatic decrease from 687 properties in Q4 of 2009 to 92 in Q1 of 2010 – a drop of more than 86%.
The top five cities in the region with the highest number of notices of default in Q1 of 2010 were Los Angeles (8,528), Palmdale (2,146), Long Beach (2,081), Lancaster (1,984) and Whittier (1,020).
One factor that may have had an effect on the reduction in defaults is the passing of Senate Bill 1137 in July 2008, which aimed toward addressing the adverse effects of the state’s high foreclosure rate. The bill effectively increased the time taken to foreclose from less than five months to approximately seven to eight months. This has given property owners more time to consolidate and seek counseling in order to avoid foreclosure in the current economic downturn.
Default Research Inc's Metro Market Report™ provides accurate information on the number of unique notice of default filingsper county. Individual properties are counted once only during the prior twelve month period, thus making the statistics more precise than counting each property every month.
More about Default Research Inc.
Since 2004, Default Research Inc has been providing the freshest and most accurate pre foreclosure listings and statistics to real estate professionals and investors. Default Research Inc's proven data collection and efficient distribution methods result in pre foreclosure lists being available two to three weeks ahead of competitors.
Default Research Inc currently abstracts and reports data in the five critical states highest in foreclosures: Arizona, California, Florida, Michigan, and Nevada. Default Research Inc reports pre foreclosure documents days after being recorded. More information about Default Research Inc can be found: defaultresearch.com.
Thursday, February 25, 2010
The Art of Strategic Foreclosure
By Serdar Bankaci
When a property owner is living in a home where the value of the property drops and the debt owed is much greater than the assessment on the property, that property is said to have negative equity or, in colloquial terms, be upside down or under water.
One way out of this situation is for the owner to go into strategic default. Strategic default is the borrower actively choosing to stop making mortgage payments even though it is still affordable to him, and live in the house until the lender forecloses. The time frame for a foreclosure to be finalized varies, but the owner may have up to a year of living in the foreclosed property rent free, capable of eliminating other debt in the meantime.
Although this will negatively impact the borrower's credit, he will no longer take responsibility for payments on the property. Owners with a positive credit record must carefully decide whether strategic default is the right choice; such an action will dramatically bring down their credit score and effect future borrowing capabilities. They will find it difficult to obtain loans or they will be able to do so only by accepting very high interest rates. Any federal loan will be denied them for at least three to five years after the foreclosure as well.
It is a difficult decision to make, but an option one that has been increasingly employed since the burst of the housing bubble. As many people face a decrease in value by one quarter or one half the amount of their original purchase, making the mortgage payment on the higher value can be just as difficult a choice.
When a property owner is living in a home where the value of the property drops and the debt owed is much greater than the assessment on the property, that property is said to have negative equity or, in colloquial terms, be upside down or under water.
One way out of this situation is for the owner to go into strategic default. Strategic default is the borrower actively choosing to stop making mortgage payments even though it is still affordable to him, and live in the house until the lender forecloses. The time frame for a foreclosure to be finalized varies, but the owner may have up to a year of living in the foreclosed property rent free, capable of eliminating other debt in the meantime.
Although this will negatively impact the borrower's credit, he will no longer take responsibility for payments on the property. Owners with a positive credit record must carefully decide whether strategic default is the right choice; such an action will dramatically bring down their credit score and effect future borrowing capabilities. They will find it difficult to obtain loans or they will be able to do so only by accepting very high interest rates. Any federal loan will be denied them for at least three to five years after the foreclosure as well.
It is a difficult decision to make, but an option one that has been increasingly employed since the burst of the housing bubble. As many people face a decrease in value by one quarter or one half the amount of their original purchase, making the mortgage payment on the higher value can be just as difficult a choice.
For more information on foreclosures please visit www.defaultresearch.com.
Friday, February 12, 2010
Default Research Inc seen on Wall Street Journal
Foreclosure cases eased in 2009: report
The number of new foreclosure cases involving property in South Florida leveled off last year, according to a market report. Default Research, a data collection firm based near Pittsburgh, Penn., found that the initiation of foreclosure cases… (visit source article)
Monday, February 8, 2010
Default Research Inman News - Foreclosure cases eased in 2009
Foreclosure cases eased in 2009
"What we deal with is the initial foreclosure proceedings, which is the lis pendens," or notices that litigation is pending, said Serdar Bankaci, CEO of Default Research. "We basically track properties that are initially being foreclosed upon." Read More
By MIKE SEEMUTH
The number of new foreclosure cases involving property in South Florida leveled off last year, according to a market report.
Default Research, a data collection firm based near Pittsburgh, Pa., found that the initiation of foreclosure cases in South Florida decreased last year after soaring for two years.
Thursday, January 14, 2010
California Foreclosure Activity Slows Due To Modifications And Regulation
Foreclosure cancellations actually eclipsed real estate owned sales in California for December, and lenders scaled back the depth of discount offers at auction. Loan modifications were the biggest factor, while mandatory one-year delays prior to foreclosure sale accounted for about a fifth of cancellations. With delinquencies still on the rise the real picture is grimmer than this latest good news would suggest. See the following article from HousingWire for more on this.
The amount of California foreclosure cancellations increased 26.5% in December to 13,243, primarily due to loan modifications. And for the first time this number overtook foreclosures reaching real-estate owned (REO) status, according to ForeclosureRadar, which tracks foreclosure activity in the state....
Echoing the report from Default Research, that said foreclosure filings fell across many counties in November, ForeclosureRadar reported a 32.5% drop in notices of default. But, delinquencies continue to plague the market. According to a report from another California real estate consulting firm, Foresight Analytics, delinquencies in Q309 grew 11% for first-lien residential mortgages.
Friday, January 8, 2010
Pre Foreclosures Stable In '09, According To Default Research Inc.
California, Florida See Decreases in Pre Foreclosures, While Arizona Sees Increase
Mt. Pleasant, PA (PRWEB) January 8, 2010 -- Default Research Inc. (http://www.defaultresearch.com), a premier provider of Notice of Default, Notice of Trustee Sale, and Lis Pendens, said that pre foreclosures remained relatively stable in their seven state coverage area from 2008 to 2009. Since 2004, Default Research has reported triple digit increases from year to year, but this year only Arizona saw an increase in pre foreclosures, while California, Arizona, Florida, and Michigan saw decreases. For more detailed regional area foreclosure statistics listed by county, please visit http://market.defaultresearch.com.
Arizona Still Increasing
Arizona pre foreclosures (http://www.defaultresearch.com/state/azforeclosure) increased over 8% in 2009 with Maricopa County, the state's largest county, experiencing a unique Notice of Trustee filing increase of 15 percent. The hardest hit cities included Phoenix (24,364), Mesa (6,446) and Glendale (5,007).
"The fourth quarter saw home inventories begin to decrease and median home prices fell as well," said Serdar Bankaci, founder of Default Research. "Our accurate numbers show that residential foreclosure levels will remain constant, while commercial and non-residential properties will continue to increase."
California Down Over 16 Percent
California, the country's most populous state, saw Notice of Default (http://www.defaultresearch.com/glossary/noticeofdefault) and Notice of Trustee Sale recordings drop by an average of 16.8 percent in 2009, and Los Angeles County, the country's largest county, saw foreclosures decrease by 16.5 percent. The hardest hit cities with foreclosures in the state were Los Angeles (20,256), Sacramento (13,495) and San Diego (10,745).
Bankaci said, "California real estate indicators suggest 2010 to be similar to 2009 with foreclosures remaining around the same level. However, we do expect commercial foreclosures to increase while the residential market slowly improves."
South Florida Sees Double Digit Drop
2009 brought a 13 percent drop in the number of unique mortgage foreclosure related Lis Pendens (http://www.defaultresearch.com/glossary/lispendens) in Florida. Miami-Dade County, the state's largest county, saw foreclosures drop by 22 percent. The hardest hit cities included Miami (25,351), Hialeah (4,170) and West Palm Beach (3,714).
"The median home prices continue to decline in Florida along with inventories, and with that steady decline we could be in for a recovery sometime in 2010," said Bankaci, "whose daily pre foreclosure lists, which also include commercial properties, are e-mailed directly to real estate professionals in the region.
Small Drop in Michigan
The number of Michigan Trustee Sale Notices (http://www.defaultresearch.com/state/miforeclosure) increased just over 1 percent in 2009. However, it is important to note that Wayne County, the state's largest county, saw a double digit decrease of 11 percent. The hardest hit cities included Detroit (12,582), Warren (1,853) and Dearborn (1,790). With these improving numbers, the median home prices and inventories are still falling steadily.
"The Detroit Area was devastated by the foreclosure crisis and the downturn in the automotive industry as well. Therefore, the future of the Detroit housing market will depend largely on the economy and unemployment rates in 2010," said Bankaci.
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