Wednesday, September 12, 2012

Will how you vote in 2012 affect the foreclosure rate??

"Holy I haven't blogged since December, Batman!!"
It's been nine-months since my last post, and I figure my topic of choice has to be a good one! ... Knowing we just wrapped up the Political Conventions last week, and yesterday marked the 11-year anniversary of Sept. 11th (Thank you to all our servicemen and woman for your daily sacrifices for our country) I feel a desire to be Patriotic, so I am going to work politics into this blog... Kind of...
I just read the blog of Sean O'Toole, the Founder and CEO of ForeclosureRadar.com . In it he talked about "how we continue to see reports that there will be a wave of foreclosure sales after the election in November..."
Now, I haven't seen any of these "continued reports" he is talking about, but I liked the topic...
The latest foreclosure numbers came out for the month of August, and from those numbers we are able to determine that come November, there will be NO influx of foreclosures. So, whether you vote for a new President, or vote to keep the President, for now it will not affect the foreclosure rate in any way. Here's how we know:
For August 2012, California Notice of Defaults were down 23.6 percent from July and down 49.1 percent from last year (foreclosureradar.com) . For those of you that don't know what a "Notice of Default" is; it is the first step in the foreclosure process - usually happens when someone hasn't been paying their mortgage for approximately three months. It's the bank's way of saying, "hey, you're not making a mortgage payment, if you don't get caught up we're going to foreclose on you..." So after a bank sends a Notice of Default (AKA takes the first step in the foreclosure process) it is mandatory that they wait a minimum of three months before they proceed and continue with a Notice of Transfer Sale.(AKA second step in foreclosure process... It is a letter to the homeowner giving them the exact date their home will be taken back)...
So from the August foreclosure numbers we are able to see that since less homes received Notice of Defaults (entered into the first step of the foreclosure process) come three months (AKA November), which is the minimum time banks have to wait until they proceed to the next step of the foreclosure process - the real estate market will not be hit with a wave of foreclosures after the election.

What this means for potential home buyers and investors: expect inventories to remain low, and offer competition to remain fierce - expect multiple offers on listings...

This is good news for the real estate market in general, because this means real estate prices will continue to rise, but not so good news for buyers because they will have so much company when trying to make offers...

Shameless Plug time:
Me and my staff here at Capital West Realty, INC are masters of Real Estate. Not only am I a certified short-sale and foreclosure specialist, but our office has four foreclosure accounts with banks. This means we often have an "insider" prospective on things coming up for sale, which means you could too! If you have any questions regarding buying, selling, short-sales, or foreclosures, please don't hesitate to call! I'd love to help!
916-834-7003

~ Chris

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