🔴 $30B In Non-Performing Loans | REO of the Week | Mountain View Home of the Week




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🔴 $30B In Non-Performing Loans | REO of the Week | Mountain View Home of the Week

Hey, so GSEs sell off 30 billion worth of nonperforming assets. What does that mean? Oh my God. The world's going to fall apart. Today's REA WTF of the week. Wednesday's distressed sale of the week, Mountain View home of the week, and San Jose market snapshot. What's going on in San Jose. And I can tell you that.


The inventory still sucks. Let's get into it. Let's do this real quick.


All right. There's my little spreadsheet. Everything's organized in spreadsheets. 


Understanding Non-Performing Assets

GSE sells off 30 billion worth of assets. Now these are nonperforming assets. And what is a nonperforming asset? That's like a pre-foreclosure. Pre-foreclosure is somebody who has not made their mortgage payments and X amount of days, right?


Typically when it gets sold off, it's past 120 days, which is four months, and 90 days. So there's a growing number of houses that are not performing mortgages that are not performing. People have lost their jobs, but it's not as alarming as you think, at least not yet. 

GSEs Sell Off $30B In Non-Performing Loans

The Impact of Non-Performing Assets


Now, 30 billion is a lot of money.

When I went to my lenders and Ryan Lundquist, my stats, nerd muse they also said that it's nothing really to be concerned about mostly because it's general information. So what, what's going on? There's. The average delinquency for these pools is from one to six years. Fannie Mae has also sold off 112, 000 loans, almost 113, 000 loans worth 20 billion.


And then Freddie Mac sold out 50, 000 loans worth up to 9 billion. So that's about the 30 billion mark, right? With an average LTV of 90 percent New York, Florida, and New Jersey accounted 40 percent these States accounted for 40 percent of the enterprises loans that were. One year or more delinquent as of December 31st.


The Foreclosure Process and Shadow Inventory


Now, why aren't they, why are they not going forward with the foreclosure process? There's a lot of new legal rigmarole that the banks have to go through to make sure that they cross all the T's and dot all the I's. There were a lot of reports last time, from 2008 to 2012, that banks would just repossess your house and if you didn't pay too bad, we'll take it from you and you don't have a choice.

Find your next home here

There was also this building. building process of shadow inventory. We talked about it with the car market, the automotive market, and what we had from 2008 to 2012, we also had a shadow inventory of houses that were nonperforming assets that weren't being foreclosed at that time. 


The Importance of Monitoring the Market


So this is something you should keep an eye on specifically because we don't know where this is going to land, right?


We, this might just level off. Shoot back up going to this slide, which we talked about a lot earlier this week, we have three of them that you can look at, but this is the most important one. We have very few of them in the foreclosure process right now, as opposed to 2008 to 2012, right? There was a lot and they shattered out and then two.



Willow Glen's five most expensive homes

Covid happened and people just stopped making payments. The banks had to work with those people that were not making payments and a lot of 'em came good to it. Made good. Some are struggling. It is just ticking up, so I'm not crying. Chicken Little, the sky is falling. I'm just saying this is one of the things that you need to keep an eye on.


Along with the automotive market, the credit card industry, the healthcare market, and all these other things. This is where I'm most comfortable. Sometimes I delve into those other industries just to get a flavor so you can see the 500-foot view of what's going on and where we're going to land.


If we're going to land. Or we could crash. We just don't know. These are not, these are just statistics. Statistics are there to make people feel comfortable. 


The State of New House Construction

#REWTF of the Week

Today's R E W T F of the week. Yeah, so a lot of these houses that are being built today are being built as quickly as possible and with the least amount of money and care.

When you do buy a house Make sure you have a real estate agent to help you walk through the process because those people at the office that are living in Those garages or working out of the garages in the offices of the houses. They're not there to protect you They're there to sell houses for Their client which is the seller so we have a process to protect you make sure That you look at stuff like this with a fine-toothed comb and before you close that all of this stuff is fixed.


I send out these things from Cy Porter an inspector down in Arizona all this stuff So it's happening more and more if you buy a brand new house Bring your agent with you because there's a process that we use to protect you. 

REO of the Week 

Bank Owned of the week

Bank Owned Property of the Week

Okay, this is the bank-owned property of the week. Look at this thing. This is a beauty, right?


1. 6, 9 million. Been on the market for 13 days. This one's going to sell fast. Four bedroom, three bath, 2, 700 square feet built in 1999. It's a nice-looking house. It looks like it's on a hill. It's okay though. I don't like that, but that might be on the other side. That looks like it's on the other side of the road.


Take a look at where this is in a minute. So it's a nice-looking house, right? Yes, I told you it was on a hill.


It's cheesy looking. Have a nice shower. Dang, I might move into this thing. Might become a squatter in this house. This is nice.


Nice, broken. Don't forget, this is a bank-owned property. What you buy is what you can do inspections, but don't expect these sellers, these bank-owned. Nice photo right there. Look at that. Peek-a-boo. It's in all the reflections, that's awesome. Yeah, oh my goodness.


Hey, nice view. It's nice. The only problem is it's in Alum Rock. Not that I steer, but I'm just not a big fan of that area. I saw a lot of houses there. And


so it looks like you're getting into the hills. So it's not so bad. See if I can go to the satellite.




Nice. So that's a little. A small finger of a road right there. It looks like the Valley that's probably where,




so yeah, hustle and bustle. It looks like you're away from, the crazy parts that Silver Creek right there.


So yeah, I might go do a walkthrough of that. That'd be fun to do. All right. 

Mountain View Home of the Week

Mountain View Home of the Week

This is the mountain view home of the week. Looked at it a couple of weeks ago and it's just not selling because it's overpriced. Remember you have two choices. When you list a price, you listen to your agent and you list it below the market.


And you attract buyers, you attract the market, or you overprice the market, overprice your house, and you try to become a market maker. It really depends on the strategy that your agent is working on. When you overprice a house, it tends to sit on the market. This one's been on the market for 20 days. It's obviously overpriced since there's probably not a lot of traffic, right?


And the big indicator here is it's brand new. It's in great shape. We have a price, but we only had two people show up. If you have 50 people looking through your house, it's going to sell.


So there you go. Okay. My suggestion to them is to list lower, attract the buyers, have multiple offers, and bid it back up to what the buyers are willing to make. Buyers control the sales price, not the seller.


Okay. 

MARKET SNAPSHOT

San Jose Market Snapshot

So San Jose, February 14th, sounds like a snapshot of where we are. We had 56 houses that were on the market for over 40 days. 31 of those are on the market over 31 days. Bank-owned in Santa Clara County. I think this is 10 counties.


Yeah. So 10 counties around Santa, around the Bay area, we have 57 houses. We only have three or four bank-owned properties in San Jose proper all of California. So 123 right now, San Jose only has 165 homes for sale. We need to have six, seven, 800. We like eight or 900. We're so far below where we need to be, that number is not ticking up.




It actually came down from last week. We need this to get up there as quickly as possible. Now, maybe in March, April, or May, when our selling season changes, that might be a problem. It might be, you might see an influx, but I don't think it's going to get to the eight or 900 units available for sale at any given time.


I think we're going to still be struggling around 200 to 50 during our selling season.

Last week we only had 45 closes. Look, this is dismal. It's like, why are we even in business? How many agents do we have in this market? Why aren't we doing our job? We can't find this. We've talked about why that is right. Last year we had 35 closes. So last year was dismal as well. We only had 90 closings on average per week compared to a couple of months.


A couple of years ago in 2021 were 1200 closes a week.


Yeah,


no, not this one. Mondays.


So you look in 2020, we had a thousand closes per week in the Bay Area, right? And in the Bay Area, we had 1200 closes a week on average in 2021.


So, San Jose, I don't know what the average was, but I can tell you that it was a lot higher than 35. Maybe I'll do that. Start looking at the actual averages per week. But 37 per week, that's dismally low. We're still seeing houses go up over the list price because people are smartly listing their properties below houses.


However, we still have some houses that are sitting on the market for a lot longer than they should. Days on the market are 27. We have 63 pending this week. So the demand is there, right? We're almost 40 percent of the inventory is being consumed right away. So there's no reason to not sell your house because there's demand right now.


Rates go up. We don't know. There's going to be a little bit stall in the market, but we'll see what happens. All right. 


Conclusion and Final Thoughts


Today we talked about GSC selling off 30 billion in nonperforming assets. And what does that mean? Does it mean a whole lot? Just got to keep an eye on it. And the R E W T F of the week that is not a square building.


That's ridiculous. Wednesday distress sale of the week. Mountain View home of the week and San Jose snapshot tomorrow. We're going to talk about, we're talking about tomorrow. Oh, the inventory snapshot from. Locals, all the county, all the cities in Santa Clara, all the way out to the United States.


Hope to see you then. I'm Vito with Abitano. We'll see you out there.



Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Website: www.abitano.com Get your Equity and Investment report here RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia Free Homebuyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg?sub_confirmation=1




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