It’s a Tough Real Estate World

1-28-2008

Last night on 60 minutes there was a major segment on the sub-prime problem.  They talked to one couple who are having problems with their adjusting mortgage – their only option (they believe) is to walk away.  They were looking at Stockton, California as a foreclosure hotspot using: www.foreclosureradar.com.  I went to the site the Moreno Valley map is jam packed with pre-foreclosure, foreclosure and lender owned properties.  They are using www.zillow.com as the source for current values of the listed properties.  I have found zillow is not reporting the current (real) values in Moreno Valley.

Report from DataQuick (1-22-2008) found the number of mortgage defaults in California in the fourth quarter of 2007 was the highest in 15 years.  They reported the statewide median home price hit a high of $484,000 last March, going down to $402,000 at the end of the year.  Most of the loans in default originated in August to October 2006.  For Riverside County the default numbers were from 4528 in the 4th quarter of 2006 to 9913 in the 4th quarter of 2007.

A homeowner is suing her real estate agent for she believes the agent mislead her about the true value of the home she purchased.  The case goes to trial today in North San Diego County.  The agent claims the buyers did not do their due diligence, the buyers claimed they trusted the real estate agent – who not only sold them the house, but also worked as a loan broker.  Requests to see the appraisal were stalled, thus the appraiser was also sued, but settled.

On Friday 1/18/2007 a vice president of a collapsed subprime mortgage lender (Fieldstone Mortgage) jumped to his death, after apparently after killing his wife in a murder-suicide.

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