Foreclosure Activity September 2006 to August 2007- Orange County CA Real Estate
Still a Slippery Slope
By Nameet Dhaiwal Realtor
Orange County CA
September 15, 2007
Almost a year ago, default notices and trustee sales notices started to rise. Home sales were slower in 2006 as effects of decreased affordability caused by a sudden increase in home prices due to an ample availability of money. Towards the end of the year, there were too many expired listings. Sales continued to decrease, and then the market got hit by a sudden strictness in the credit score guidelines in March 2007, many fell short of refinance or selling their house, ending up with a default notice. July 2007 got a surprise from the Wall Street when investors suddenly realized the risk and stopped buying 100% financed loans, the nations banking system caught it as a surprise causing many banks to file bankruptcy and close their doors to the employees.
Big giants, such as Countrywide, are still facing challenges and many of the institutions, such as Chase Mortgage and Washington Mutual etc., increased their overnight lending rate for jumbo loans, as now they cannot sell, instead would have to portfolio these loans. There has been a big pendulum swing from one being able to get any loan a year ago, to handicapping the today's homebuyers with best credit and good down payment. Effects of Wall Street's panic in last few months will show its effects in coming months.
This whole turmoil is leading to more defaults and trustee sales and more of these properties going back to the lender, becoming REO (real estate owned) are causing a further burden on these institutions. Although Fed admits about being aware of the situation at this time and promising to take needed steps but for may people its day late and dollar short.
Here are the numbers for last one-year foreclosure activity for Orange County CA Real Estate, starting Sept 2006 to August 2007 according to date collected from County Records Research. Every month it is slipping further and causing uncertainty in the market.
