Real Estate Fast Facts

Fast Facts
Calif. median home price: November 2011: $280,960 (Source: C.A.R.)
Calif. highest median home price by region/county November  2011: Marin: $736,410 (Source: C.A.R.)
Calif. lowest median home price by region/county November 2011: Madera: $103,330 (Source: C.A.R.)

Calif. Pending Home Sales Index: November 2011: 109.8, an increase of 11 percent compared with the prior year.

Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)

Mortgage rates: Week ending 12/29/2011 30-yr. fixed: 3.95% fees/points: 0.7% 15-yr. fixed: 3.24 fees/points: 0.8% 1-yr. adjustable: 2.78% Fees/points: 0.6% (Source: Freddie Mac)
George Avram
Broker/Owner/Real Estate Auctioneer
Continental Realty Inc.
16 Crow Canyon Court Suite 100
San Ramon CA 94583
DRE# 01422589
925-548-5461
www.24by7bid.com

Serious Delinquencies Decline, Foreclosure Rates Steady

Serious delinquencies are on the decline, while foreclosures have steadied at 5.5 percent, according to recent data from Foreclosure-Response.org, a joint venture of the Local Initiatives Support Corporation, the Urban Institute, and the Center for Housing Policy.

Among the 100 largest metropolitan areas, serious delinquencies – those 90 days or more past due or in foreclosure – declined from 10.4 percent to 9.3 percent from its December 2009 peak to June 2011.
The decline in serious delinquencies can be attributed to a decline in delinquent loans, according to Foreclosure-Response.org, which states delinquencies fell from 5.5 percent at the end of 2009 to 3.7 percent in mid-2011.
Areas experiencing higher rates of serious delinquencies include Florida, California and some areas of New Jersey, the Great Lakes region, and the South.

Areas with lower rates of serious delinquencies include Texas, the Central and Mountain Time zone regions, and some areas of the Pacific Northwest.
Seventeen of the top 25 metros ranked for serious delinquencies and four of the top five are located in Florida.
While serious delinquencies decline, foreclosures have “flat-lined,” according to Foreclosure-Response.org. The foreclosure rate has stayed at about 5.5 percent over the three quarters ending in June.
The two metros experiencing the greatest decline in foreclosures are in California – Riverside (1.9 percent) and Stockton (1.7 percent).
In contrast, metros in Florida, New York, and Illinois are seeing rising foreclosure rates. Tampa saw a 2.8 percent increase from December 2009 to June 2011, while Chicago saw a 2.3 percent increase, and New York saw a 2.1 percent increase.
Foreclosure-Response.org notes that these three states are judicial states, which “can create a significant backlog of foreclosures.”
“The foreclosure inventory that is building up is going to take an incredibly long time for lenders to clear,” said Urban Institute research associate Leah Hendey. “At the current pace of foreclosure sales, we are looking at a process that could take decades to complete.”
“It is critical that the status of these properties be resolved quickly if we want to stabilize communities and housing m

arkets,” Hendey continued. (Krista Franks - dsnews.com)

Fannie Mae: Economy Is Growing, But Momentum Will Wane

While the euro-zone crisis continues to depress the economic outlook here stateside, the U.S. economy is growing and we will see “a decent close to a tough year,” according to a fourth-quarter report from Fannie Mae.

The fourth quarter will end with more than 2.5 percent economic growth, making it the best-performing quarter in 2011.
Fannie Mae also notes that 140,000 private sector jobs were added in November, while September and October employment data was revised upward.
The report also mentioned “slight improvements in housing.”
However, Fannie Mae predicts the positive momentum will slow as we move into the new year.
Second and third quarter data for wages, salaries, and real disposable income were revised downward.
Additionally, consumer spending rose, surpassing income growth, which caused the saving rate to fall from 4.8 percent to 3.8 percent in the third quarter. This is the lowest saving rate since the fourth quarter of 2007. (Krista Franks - dsnews.com)

Yearly Home Values Decline Nearly $700B, But Rate of Decline Slows

As 2011 comes to a close, Zillow anticipates home value declines for the year will total more than $681 billion. The rate of depreciation, however, is slowing.

The $681 billion decline this year is 35 percent less than last year’s $1.1 trillion drop in value.
Additionally, much of this year’s decline occurred during the first half of the year. Values declined $454 billion in the first six months of 2011, and by the end of the second half of the year, values are expected to wan another $227 billion.

“While homeowners suffered through another year of steep losses, the good news is that homes are losing value at a substantially slower pace as the market works its way towards the bottom,” said Zillow Chief Economist Stan Humphries.
“Compared to last year when we saw sharp declines following the expiration of the homebuyer tax credits, this year we saw some organic improvement in home values, in terms of a slowed depreciation rate which resulted in a smaller total value loss for the year,” Humphries said.
Nine of the 128 markets Zillow tracked experienced increasing home values over the year.
The largest gain was seen in the New Orleans area, where home values rose $3.5 billion. The Pittsburgh metropolitan statistical area (MSA) followed with a $2.7 billion upsurge.
In terms of dollar value, the greatest decline was seen in the Los Angeles MSA, where home values declined $75.5 billion.
New York ranked second with a $44.8 billion drop in value, and Chicago followed with a $41.7 billion decrease. (Krista Franks - dsnews.com)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com

Auction Handbook

What is an auction?

Auctions have existed for more than 2,000 years and continue to grow in popularity every year. An auction occurs when consumers gather physically, or online, to buy an item by bidding against each other until the highest offered price is reached.

The history of auctions

Records handed down from ancient Greeks document auctions occurring as far back as 500 B.C. At this time, women were auctioned off as wives. In Rome, around the time of Christ, auctions were popular for family estates and the selling of war plunder. One of the most significant historical auctions occurred in 193 A.D. when the entire Roman Empire was put on the auction block by the Praetorian Guard.

American auctions date back to the Pilgrims’ arrival on America’s eastern shores in the 1600s and continued in popularity during colonization with the sale of crops, imports, livestock, tools, slaves and entire farms. Colonels during the American Civil War were the only people allowed to auction war plunder and today many auctioneers carry the title of “Colonel”.

Auction schools started in the early 1900s in the United States.

The Great Depression created many opportunities for auctioneers as their services were needed to liquidate the assets of individuals and businesses hurt by the economy.

As time has gone by, auctions have become more and more popular as a means to sell goods and assets. Technology

has changed the face of auctions from the days where auctioneers would stand before an audience and call an auction, to today’s auctions where computers, cell phones,and fax machines are utilized daily.

The auction option

Whether you’re selling sentimental prized possessions or looking to buy one-of-a-kind treasures, an auction is just the place to make things happen.

Contrary to what some might view as complicated and time consuming, a fast-paced auction is one of the most efficient ways of converting your property or assets into immediate cash. With the combination of pre-sale marketing and the auctioneer’s attention-getting chant, you could have enthusiastic, attentive buyers aggressively competing to purchase your property.

If you’ve never attended an auction, you’re missing out on a great time!

Auctions are exciting and most importantly, auctions are fun! Auctions exhilarate and captivate everyone, from the opening call of “Would you bid?” to the sound of the gavel slamming down and the ringing of “Sold!”.

Everywhere you turn at an auction, there’s a thrill in the air as potential buyers find something they want and set out to successfully bid against others who want the same thing. Auctions bring out the competitive nature in all of us!

Industry overview

Today’s auction industry is broad and diverse and ranges from art and antiques, to real estate and automobile auctions. Professional auctioneers sell on average a quarter-trillion dollars in goods and assets every year in the United States.

What types of auctions are there?

Agricultural machinery & equipment

Art, antiques & collectibles

Automobiles

Benefit

Commercial and industrial machinery & equipment

Commercial and industrial real estate

Estates

Intellectual property

Land and agricultural real estate

Livestock

Personal property

Residential real estate

Everywhere you turn at an auction, there’s a thrill in the air as potential buyers find something they want and set out to successfully bid against others who want the same thing.

Auction Answers

The Complete Idiot’s Guide to Live Auctions

Excerpts from The Complete Idiot’s Guide to Live Auctions, a publication authored by the National Auctioneers Association.

Absentee Bid

A procedure which allows a bidder to participate in the bidding process without being physically present. Generally, a bidder submits an offer on an item prior to the auction. Absentee bids are usually handled under an established set of guidelines by the auctioneer or their representative. The particular rules and procedures of absentee bids are unique to each auction company.

Absolute Auction (Auction Without Reserve)

An auction where the property is sold to the highest qualified bidder with no limiting conditions or amount.

“As Is”

Selling the property without warranties as to the condition and/ or the fitness of the property for a particular use. Buyers are solely responsible for examining and judging the property for their own protection. Otherwise known as “As Is, Where Is”.

Auction Listing Agreement

A contract executed by the auctioneer and the seller which authorizes the auctioneer to conduct the auction and sets out the terms of the agreement and the rights and responsibilities of each party.

Auction With Reserve

(Subject to Seller Confirmation)

An auction in which the seller or his agent reserves the right to accept or decline any and all bids. A minimum acceptable price may or may not be disclosed and the seller reserves the right to accept or decline any bid within a specified time.

Ballroom Auction

An auction of one or more properties conducted in a meeting room facility.

Bidder's Choice

A method of sale whereby the successful high bidder wins the right to choose a property or properties from a grouping of similar or like-kind properties. After the high bidder's selection, the property is deleted from the group, and the second round of bidding commences, with the high bidder in round two choosing a property, which is then deleted from the group and so on, until all properties are sold.

Bidder Package

The package of information and instructions pertaining to the property to be sold at an auction event obtained by prospective bidders at an auction.

Buyer’s Premium

A percentage added on to the high bid. Buyer premiums are used by many auction houses as a way of spreading the cost of the event with the people who benefit most from the opportunity to purchase; the buyer. It is an amount added to the high bid in addition to the high bid and payable by the buyer.

Caveat Emptor

Latin term meaning “let the buyer beware.” A legal maxim stating that the buyer takes the risk regarding quality or condition of the property purchased, unless protected by warranty.

Minimum Bid Auction

An auction in which the auctioneer will accept bids at or above a disclosed price. The minimum price is always stated in the brochure and advertisements and is announced at the auctions.

Opening Bid

The lowest acceptable amount at which the bidding must commence.

Terms and Conditions

“Terms and Conditions” are the printed rules and format ofthe auction. Terms and conditions outline the type of auction, the commission structure of auction, and any other pertinent information. The terms of each auction vary and differ between auction companies.

Ringman

The “ringman” is a member of the auction team who works with bidders throughout the auction. A “ringman” is generally recognized as the person in the crowd yelling and flashing hand signals to the auctioneer when a bid has been made. This individual works the auction “ring”, hence the name “ringman”.

Withdrawal

Failure to reach the reserve price or insufficient bidding.

There’s even more curiosity among bidders when it comes to the prices obtained at auction. Auctions are a social event and while people attend to find great deals, many walk away making new friends.

Auction tips

There's an excitement about auctions that makes it a special event that draws people again

and again. People attend out of curiosity about what unique or interesting items are for sale. There’s

even more curiosity among bidders when it comes to the prices obtained at auction. Auctions are

a social event and while people attend to find great deals, many walk away making new friends.

Auctions are also a great educational opportunity to learn about art, autos, furniture, and every type

of property sold, by talking to other attendees, sellers and auctioneers. You learn about values,

construction of items, collection practices and much more when you attend an auction.

Before you bid...

t Understand the basic types of auctions: absolute, reserve, and subject to seller confirmation.

t Arrive early and register for the auction. Certain auctions (i.e. real estate) may require a cashier’s check or other   payment in advance of the auction to qualify you to bid in the auction.

t Always read the Terms and Conditions sheet handed to you at registration because you are bound by them if you bid. Also inspect items you are interested in buying because when you buy at auction you typically buy “as is” which means if you bid and win, you now own and cannot return the item.

t Bid in sync with the chant. You should be listening closely and following the increasing bids. Remember: Filler words in the chant are used to remind buyers of the last bid number and give buyers time to consider their next  bid

Hiring an auctioneer...

 If you are considering an auction for your personal or business assets, consider the following tips.

t Whether it be real estate, art, or automobiles, select an auctioneer with experience in your particular type of sale.

t Ask for references and attend one of their auctions and learn about auctions firsthand.

t Take an active role in the marketing and advertising of your assets.

t Always consider hiring an NAA auctioneer. NAA member auctioneers are at the top of their field in the auction business.

Members are professionals well versed in the psychology of selling. Their education, experience and networking capabilities stimulate competition among bidders, securing you the highest price per sale.

The art of auctioneering

Contrary to popular belief, the key to being a successful auctioneer is not the speed of their chant, but rather their ability to market and promote their auctions. Auctioneers are entrepreneurs who excel in marketing and advertising.

The primary role of an auctioneer is to develop a marketing campaign to promote the sale of their client’s assets and attract bidders to their auction. Many auctioneers are also appraisers and experts in their field of sales (i.e. art, antiques, etc.).

As appraisers, auctioneers help their clients evaluate the value of their assets.

(NAA - Auction Handbook)

If you are looking for a professional Real Estate Auction Company that specializes in marketing and promoting properties worldwide and is also using the latest cutting edge technology in online and live auctions, contact:

George Avram

Broker/Real Estate Auctioneer

Continental Realty, Inc. Dba: 24by7bid Realty

16 Crow Canyon Court Suite 100

San Ramon CA 94583

925-548-5461

GeorgeA@24by7bid.com

www.24by7bid.com

DRE# 01422589

California consumer sentiment slides

The California Composite Index of Consumer Confidence declined approximately 10 points to 78.6 in the fourth quarter of 2011 compared with the third quarter’s revised reading of 88.2, according to the A. Gary Anderson Center for Economic Research at Chapman University.  An index level below 100 reflects a higher percentage of pessimistic consumers versus those who are optimistic. In contrast, the survey of consumer confidence at the national level conducted by the University of Michigan showed a reading of 64.1 in the month of November increasing from the August reading of 55.7. The California Composite Index is generated based on three indices: Consumers’ outlook on current and future economic conditions, and an index measuring consumers’ spending plan. All three components of the composite index declined over the last three months.
Continued high unemployment rate in California, currently at 11.7 percent, and volatile stock market may be the main factors explaining why the consumer assessment of the current economic conditions has deteriorated so sharply. This index declined to a reading of 60.8 in November of 2011 from 67.1 in August of 2011. The index measuring future economic conditions also decreased to a reading of 95.8 in November from a reading of 106.8 in August 2011. Moreover, the index measuring consumers’ planned spending on big-ticket items decreased significantly from the August reading of 93.4. The reading of 79.8 suggests consumers’ spending in the early part of 2012 may decline sharply from the current strong pace reported by the retailers. (C.A.R. Newsline)

Existing-Home Sales Rise in November

Existing-home sales rose again last month, according to data released Wednesday by the National Association of Realtors (NAR).

That assessment, however, is coming off of lower sales numbers than previously thought, reflecting revisions to NAR’s data going back to 2007. The trade group has adjusted sales and inventory figures for the last four years downward by 14.3 percent, signaling the housing crisis has run even deeper that earlier assumptions.
NAR’s latest monthly report shows sales of previously owned homes increased 4.0 percent to an annual rate of 4.42 million in November from 4.25 million in October, and are 12.2 percent above the 3.94 million-unit pace in November 2010.
Total housing inventory at the end of November fell 5.8 percent to 2.58 million existing homes available for sale, which represents a 7.0-month supply at the current sales pace, down from a 7.7-month supply in October.
The national median existing-home price was $164,200 in November, down 3.5 percent from a year ago.
Distressed homes – foreclosures and short sales typically sold at deep discounts – accounted for 29 percent of November’s sales (19 percent were foreclosures and 10 percent were short sales), compared with 28 percent in October and 33 percent in November 2010.

Although re-benchmarking resulted in lower adjustments to several years of home sales data, NAR says the month-to-month characterization of market conditions did not change.
Lawrence Yun, NAR’s chief economist, says November’s report indicates more people are taking advantage of the buyer’s market.
“Sales reached the highest mark in 10 months and are 34 percent above the cyclical low point in mid-2010,” Yun said. “We’ve seen healthy gains in contract activity, so it looks like more people are realizing the great opportunity that exists in today’s market for buyers with long-term plans.”
NAR also stressed that there were no revisions to home prices or month’s supply.
“From a consumer’s perspective, only the local market information matters and there are no changes to local multiple listing service (MLS) data or local supply-and-demand balance, or to local home prices,” Yun said.
A divergence developed over time between sales reported by MLSs and sales determined by a U.S. Census benchmark, with the variance beginning in 2007, NAR explained. The trade group cited growth in MLS coverage areas from which sales data is collected and geographic population shifts as reasons for the divergence.
“It appears that about half of the revisions result solely from a decline in for-sale-by-owners (FSBOs), with more sellers turning to Realtors to market their homes when the market softened,” according to Yun. “The FSBO market was overwhelmed during the housing downturn, and since most FSBOs are not reported in MLSs, national estimates of existing-home sales began to diverge based on previous assumptions.”
NAR’s says its 2010 benchmark shows there were 4,190,000 existing-home sales last year, rather than the 4,908,000 sales previously projected.
Revisions covering 2007 through 2010 are expected to have a “minor impact” on future revisions to Gross Domestic Product (GDP), according to NAR. (Carrie Bay - dsnews.com)

GSEs Held $2 Trillion in Subprime Loans at Height of Financial Crisis

At the height of the financial crisis in 2008, Fannie Mae and Freddie Mac held $2 trillion in high-risk subprime loans, amounting to 42 percent of their single-family portfolios, according to Edward Pinto of the American Enterprise Institute.
Pinto, who served as chief credit officer for Fannie Mae until the late 1980s, arrived at this number by relying on data from the Securities and Exchange Commission (SEC),

which filed a lawsuit against six former GSE executives for securities fraud.
According to the SEC, the GSEs released several statements undervaluing the amount of subprime loans in their portfolios.
In a 2010 report, Pinto attributed the industry’s increase in subprime lending to government policies he said “forced a systematic industry-wide loosening of underwriting standards in an effort to promote affordable housing.”
“These policies were legislated by Congress, promoted by HUD and other regulators responsible for their enforcement, and broadly adopted by Fannie Mae and Freddie Mac (the GSEs) and the much of the rest mortgage finance industry by the early 2000s,” Pinto wrote.
Fannie Mae announced a $2 trillion commitment to affordable housing in 2003, according to Pinto.
HUD is reported to have been a proponent of subprime lending. Pinto quoted HUD as saying “The line between what today is considered a subprime loan versus a prime loan will likely deteriorate, making expansion by the GSEs look more like an increase in the prime market.”(Krista Franks - dsnews.com)

Required Disclosures When Selling Real Estate

What you need to disclose to potential home buyers about your property.

When selling your home, you may be obligated to disclose problems that could affect the property's value or desirability. In most states, it is illegal to fraudulently conceal major physical defects in your property such as a basement that floods in heavy rains. And many states now require sellers to take a proactive role by making written disclosures about the condition of the property.

What You Must Disclose

Generally, you are responsible for disclosing only information within your personal knowledge. In other words, you don't usually need to hire inspectors to turn up problems you never had an inkling existed.
Some states require more. However, some states' laws identify certain problems that are your responsibility to search for, whether you see signs of the problem or not. In these cases, or where you could have seen a particular defect but turned a blind eye, you could ultimately end up in court, compensating the buyer for the costs of your failure to speak up sooner.

California's Stringent Disclosure Requirements

California sellers must fill out and give the buyers a disclosure form listing a broad range of defects -- such as a leaky roof, deaths that occurred within three years on the property, neighborhood nuisances such as a dog that barks every night, and more. In addition, California sellers must disclose potential hazards from floods, earthquakes, fires, environmental hazards, and other problems, in a Natural Hazard Disclosure Statement. California sellers must also alert buyers to the availability of a database maintained by law enforcement authorities on the location of registered sex offenders.

Consider getting an inspection. While it's not usually required, some sellers hire a property inspector to look things over before they put the house on the market. (See Home Inspections: A Crucial Step.) The results will help you determine what items or house features need repair or replacement and will assist you with preparing any required disclosures. An inspection report is also useful in pricing your house and negotiating with prospective buyers.
Err on the side of disclosure. If you have even the faintest question about whether or not to disclose something to potential buyers, avoid the potential for liability and tell all. Full disclosure of any property defects will help increase the buyer's confidence that you're dealing fairly. And it will protect you from legal problems later, such as buyers who want out of the deal or who claim damages suffered because you carelessly or intentionally withheld information about your property.
And remember, just because you disclose a problem doesn't mean you must repair or correct it. The buyers have an interest in getting the deal closed as well, and often overlook minor issues. Or, the disclosed item can become a point of negotiation between you and your buyer.
Disclose lead-based paint and hazards. If you are selling a house built before 1978, you must comply with a federal law called the Residential Lead-Based Paint Hazard Reduction Act of 1992 (U.S. Code § 4852d), also known as Title X. You must:

• disclose all known lead-based paint and hazards in the house
• give buyers a pamphlet prepared by the U.S. Environmental Protection Agency (EPA) called Protect Your Family from Lead in Your Home
• include certain warning language in the contract as well as signed statements from all parties verifying that all requirements were completed
• keep signed acknowledgements for three years as proof of compliance, and
• give buyers a ten-day opportunity to test the house for lead.

If you fail to comply with Title X requirements, the buyer can sue you for triple the amount of damages actually suffered. For more information on lead hazards, prevention, and disclosures, contact the National Lead Information Center -- by phone at 800-424-LEAD, or check its website at www.epa.gov/lead.

How to Find Your Area's Required Disclosures

Check with your real estate agent or attorney or your state department of real estate for disclosures required in your state. Also, check with your city planning department for information on local ordinances and disclosures that affect your sale. Finally, be aware that real estate agents are increasingly requiring that sellers complete disclosure forms, regardless of whether or not it's legally required in their state.

How You Must Disclose

Most states' laws mandate that disclosures be on special forms the seller must sign and date. Be sure the buyer acknowledges receipt of the disclosures by signing and dating the forms as well. If your state doesn't require a specific disclosure form, be sure the buyer otherwise affirms receipt of your disclosures, in writing.
To learn more about required disclosures, see Nolo's Essential Guide to Buying Your First Home, by Ilona Bray, Alayna Schroeder, and Marcia Stewart (Nolo).

Fitch: CMBS Delinquency Declines Hit Month Four

November marked the fourth straight month that Fitch Ratings has recorded a decline in the delinquency rate for loans held in U.S. commercial-backed mortgage securities (CMBS).

CMBS late-pays fell by 15 basis points last month to 8.41 percent, down from 8.56 percent in October. New delinquencies totaling $1.8 billion were offset by $2.2 billion of resolutions, Fitch reports.
Behind the positive numbers, though, the New York-based ratings agency says the performance of CMBS collateralized by office properties remain an area of concern heading into 2012. More than half of all new delinquencies in November consisted of office loans.
Of the four most prevalent CMBS property types (office, retail, multifamily, and hotel), loans backed by office properties saw the largest percentage gain in delinquencies since October, as well as over the past twelve months.
Office late-pays were up 4.3 percent (27 bps) month-over-month, and since November 2010 they have increased 16.5 percent (93 bps), settling in at a 6.56 percent delinquency rate as of the end of November.
Office properties now contribute 210 bps ($8.4 billion) to Fitch’s CMBS delinquency index. The agency has said for some time now that office properties with rolling rents would be responsible for an increasing number of new delinquencies.

Fitch says delinquencies for loans backed by office properties have closely mirrored broader trends seen across the sector. For example, several weak office markets contribute an outsized share toward the overall office delinquency figure, including Atlanta, Phoenix, Dallas, Sacramento, Detroit, and Las Vegas.
Each of these markets experienced third-quarter vacancy rates at or in excess of 20 percent, with three markets – Phoenix, Detroit, and Las Vegas – reporting rates over 25 percent, according to data provided by REIS.
However, loans backed by central business district (CBD) office properties from the strongest office markets are virtually absent from Fitch’s index. For instance, the CBDs of D.C., New York City, San Francisco, and Boston collectively contribute just one office loan to the index – a New York City office property in foreclosure.
In contrast to the increase for office – and modest upticks for hotel and industrial – multifamily and retail delinquency rates declined last month.
Multifamily delinquencies dropped 28 basis points to 15.71 percent, while retail shed 20 basis points to hit 6.63 percent.
Past-dues among hotel properties rose 12 basis points, posting a delinquency rate of 12.66 percent in November, while industrial delinquencies edged up 4 basis points to 10.34 percent.
Fitch Ratings’ delinquency index includes 2,579 loans totaling $33.8 billion that are currently at least 60 days delinquent, in foreclosure, REO, or considered non-performing matured. The total delinquency percentage is calculated from the outstanding CMBS populated rated by Fitch, consisting of approximately 33,500 loans comprising $402.3 billion.
The index excludes rated loans that are 30 to 59 days delinquent, which totaled $2.1 billion in November, compared with $1.5 billion in October.
Fitch Ratings maintains a ‘stable outlook’ on approximately 86 percent of its U.S. CMBS portfolio. Most of the remaining bonds are either considered distressed (8 percent) or have a ‘negative outlook (6 percent). (Carrie Bay -dsnews.com)

Fannie Mae: Three Servicers Improve Foreclosure Prevention Efforts

Fannie Mae released the results of the Servicer Total Achievement Rewards (STAR) Program Thursday, announcing improvements by JPMorgan Chase, PHH Mortgage, and U.S. Bank. All three banks improved their foreclosure alternative practices.
“The STAR program evaluates servicers’ capabilities and results and holds them accountable for preventing foreclosures and protecting the interests of American taxpayers,” said Tara Clayton, VP of servicer review and measurement at Fannie Mae.

“STAR is making a difference when it comes to increasing servicers’ focus on areas of critical importance to homeowners, Fannie Mae, and the market,” Clayton stated.
STAR breaks servicers into three categories based on the number of Fannie Mae loans they service.
In the first peer group of 11 servicers, four are expected to receive a three STAR rating – meaning they are at or above median performance – in 2011. Those four include CitiMortgage, Everbank, GMAC Mortgage, and Wells Fargo.
In Peer Group Two, six of nine servicers are expected to receive a three STAR rating at the end of the year, including Aurora Bank, FSB, Central Mortgage Company, Fifth Third Bank, The Huntington National Bank, and Regions Bank.
In Peer Group Three, nine of 13 servicers are expected to be at or above median performance level.
The nine banks include American Home Mortgage Servicing, Arvest Mortgage Company, Associated Bank, Capital One, Colonial Savings, Doral Bank, Manufacturers and Traders Trust, Nationwide Advantage Mortgage, and Navy Federal Credit Union. (Krista franks - dsnews.com)

Real Estate Fast Facts

Fast Facts
Calif. median home price: October 2011: $278,060 (Source: C.A.R.)
Calif. highest median home price by region/county October  2011: Marin: $781,250 (Source: C.A.R.)
Calif. lowest median home price by region/county October 2011: Lake County: $96,500 (Source: C.A.R.)

Calif. Pending Home Sales Index: October 2011: 122., an increase of 3.1 percent compared with a prior year.

Calif. Traditional Housing Affordability Index: Third quarter 2011: 52 percent (Source: C.A.R.)

Mortgage rates: Week ending 12/8/2011 30-yr. fixed: 3.99% fees/points: 0.7% 15-yr. fixed: 3.27 fees/points: 0.8% 1-yr. adjustable: 2.80% Fees/points: 0.6% (Source: Freddie Mac)

George Avram

Broker/Owner/Real Estate Auctioneer

Continental Realty Inc.

16 Crow Canyon Court Suite 100

San Ramon CA 94583

DRE# 01422589

925-548-5461

www.24by7bid.com