Less Than Tripled Here

Written by Jim the Realtor

August 30, 2010

From the latimes.com, and featured at CR:

http://www.latimes.com/business/realestate/la-fi-luxury-foreclosures-20100829,0,479624,full.story

“The number of homes in the $1-million-and-up market that have become bank owned has tripled during the last three years in Los Angeles County, and the trend has shown little sign of slowing.”

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What about San Diego County? On Foreclosureradar.com you can search by approximate value, here are the number of detached properties over $1,000,000 that were foreclosed in SD County for the entire year:

2007 = 74

2008 = 103

2009 = 162

2010 = 126 so far.

13 Comments

  1. Geotpf

    From the article:

    The number of homes in the $1-million-and-up slice of the market that have become bank owned has tripled in the second quarter compared with the same period three years earlier in Los Angeles County, which has the majority of Southern California’s high-priced REO houses. And the trend has shown little sign of slowing, according to data from ForeclosureRadar.

    “Three years earlier” would be second quarter 2007, not second quarter 2008.

    What was the number in San Deigo County in 2007?

  2. Jim the Realtor

    You got me.

    2Q07 = 16
    2Q08 = 33
    2Q09 = 43
    2Q10 = 73

    4.5x

    I did enjoy my 25 minutes of breathing room though.

  3. Geotpf

    Thanks for the update. 🙂

    126 / .6667 (the year is about two thirds over) = 189

    74 * 3 = 222

    189 / 74 = 2.55

    So, not quite there (up 255%, not 300%), but close.

  4. Geotpf

    Sorry to correct you so quickly. If I didn’t somebody else would have. (That’s my excuse and I’m sticking with it. 😛 )

  5. Jim the Realtor

    Quickly?

    25 minutes felt like vacation! 😉

  6. jack

    I have a friend who hasnt paid a mortgage payment in over a year and has not even got a NOD.The lender was countrywide.They plan to leave after the bank boots them out.

    I am assuming that they are still responsible for property taxes and hoa because the home is still in their names.

    If they dont pay the taxes I’m assuming the county will place a lien on the property.I believe in CA they can sell the property after 5 years to pay taxes.

    When the bank does foreclose I wonder if the bank will have to pay the back taxes to clear the title for a future owner?I guess the county could get a judgement against the original owner but that would involve court.So I imagine the bank would have to go after the owner for the taxes if they wanted their money back.

    Do any of you have any experience with the property tax and hoa fees during and after foreclosure as I’m talking about?

  7. shadash

    jack,

    Welcome to the club. We all know people like this.

    It’s discusting and immoral. But banks are allowing it. Now that we gave them all our tax dollars (Tarp) to stay in business there’s not much we can do.

    Why do you think the Fed is so against deflation? Does it really matter to those in a 30 year fixed? Or are bankers worried about losing value of their book “assets”.

  8. clearfund

    Jack – HOA and Taxes are both senior liens against the PROPERTY…NOT PERSONAL.

    Thus, whomever buys the house at the foreclosure auction is responsible for the back taxes (and should have already factored that cost into their max purchase price). Same with HOA.

    In the end, its the lender who ultimately gets shafted for these costs as either they pay them, or the property’s sale price is reduced by these amounts at auction.

  9. FreedomCM

    clearfund,

    I bow to your professional knowledge, but…

    I was under the impression that HOA lien was junior in CA, and got wiped out by the FC. Maybe I was thinking of another state, and in CA it is a senior lien?

  10. clearfund

    I’ll admit to the HOA part being in the ‘unknown’ area of my mind…not 100% sure and I know there is conflicting data/posts on this topic.

    I do know that it typically shows up on title as a recorded lien after taxes but before any mtg as it is in place before the home was sold to the buyer (probably many years ago).

    Thus my assumption of it being senior to any mortgage…if not it should be!

  11. Jim the Realtor

    HOA liens are junior from our experience, though if they were to file after the foreclosure, they might get lucky and the new bank owner not catch it at closing.

  12. dacounselor

    Just remember that even if an HOA lien is sold-out during foreclosure it does not wipe out the debt. The HOA can pursue you personally for the amount past due. And if the CC&R’s have an attorney fees provision, you are on the hook for the HOA’s attorney fees as well.

  13. jack

    Thank you guys for the insight.

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