FORECLOSURE TRENDS IN NEWPORT BEACH

By
Real Estate Broker with Robert Owen Deane Real Estate Broker


Knowing what is taking place in the Newport Beach Market will help you make informed choices. If you are interested in Foreclosure Prevention, this is knowledge that will serve you well.

NEWPORT BEACH  MARKET TRENDS IN FORECLOSURES

Newport Beach has not been sheltered from the downturn in the real estate market. While the real estate market is in far better conditions than many others, there are still 437 home in the foreclosure process. Of this total, the majoring are in the first stage of the foreclosure process, Notice of Default (NOD); 47 percent of the homes in foreclosure are at the NOD stage. Homes that are scheduled for Trustee Sales (foreclosed by the bank and up for sale), is the second largest category. A total of 158 homes went to trustee sale in September. Trustee sales have been trending downward since April. Bank owned home in Newport Beach have been slowly trending downward and now comprise 17% of all homes in Foreclosure.

Graph of Foreclosure Inventories in Newport Beach,CA

If your home is in foreclosure, how long can you stay in your home?

Legally, the foreclosure process from Notice of Default to Trustee Sale can be completed in 111-days. But then we hear about people staying in their homes for years. What is the truth?  Actually in Newport Beach it is more like one year. On average the foreclosure process is taking 347 days in Newport Beach and this time frame has been trending upward since the beginning of the year. One reason banks are more and more favoring short sales is the fact it is taking six months or more to sell a REO home; investors are not doing much better.

Graph of Time to Foreclose in Newport Beach,CA
Newport Beach,CA – Time to Foreclose

The number of home receiving Notices of Default here in Newport Beach  (the first step in the foreclosure process which arrives once the homeowner is 90-days behind in mortgage payments) has ranged between 30 and 60 per month. NODs have been increasing since a low point in June, September filings however, are down by 8.3% from July.  Trustee sales are following this trend with a lag – Trustee sales (when the home is sold to a third party investor or returned to the bank) lag NODs by some six months. Since peaking in June, Trustee sales have been declining; down in September filings by 39% from July.

All home that receive a Notice of Default do not go into Foreclosure. For example, in September 2010 out of 28 homes in Foreclosure, only one was sold to third-paties at Auction (Cash Investors).
An average of thee homes go to investors each month. Most foreclosure investors flip the properties they purchase after taking care of title, occupancy and repairs. According to Foreclosure Radar, on a State-wide basis, investor sales are taking 44.5 percent longer than it did a year ago, up from 95 days to 137.

Notice of Defaults and Sales are taking place in all price ranges -with the majority now clustered above $1.0 million.

What is taking place in Foreclosure in Temecula

If you are behind on your mortgage or have already received a notice of default, you are not alone. What you do need to do is know your options. You will find that there are far better solutions than doing nothing and allowing your home go into default. Short Salesare proving to be a far better solution but your time could be running out.

Take the first step and educate yourself  -TemeculasNeighborhoodExpert.Com provides you with the information you need to make an informed decision. I am a Certified Distressed Property Expert (CDPE) with the education and resources to both provide you with the information you need and manage the Short Sale process. Call me if I can be of help – Robert Deane (949) 230-0325 or by e-mail at Robert@temeculasneighborhoodexpert.com


 

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Additional Information

EXCLUSIVE BUYER'S BROKER - RELOCATION CONSULTANT Robert Owen Deane - Exclusive Buyer's Broker, and an advocate for homebuyer's in the process of finding and buying a home. Exclusive Buyer's Brokers are the purist form of a homebuyer's representation; I never take a listing, I never work for a seller. My loyalty is 100% to homebuyer's. I am an Accredited Buyer's Representative (ABR) and member of REBAC; the world’s largest organization of real estate professionals focusing on BUYER representation. Many Exclusive Buyer's Agents are also members of NAEBA. This blog is The Home Buyer's Advocate, it provides homebuyers with information about the home buying process, market trends and neighborhood information in the Cities of Newport Beach, Irvine and Costa Mesa in Orange County, California.