Video Tour of 3 Scottsdale Homes Purchased at the Trustee Auction

Looks like CA RE might have bottomed thanks to all the RE investors. Is that happening in AZ, too?
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Associated Press

Posted: 11/06/2009 05:56:45 PM PST
Updated: 11/06/2009 05:56:48 PM PST

The California real-estate market may have stopped falling for homes with the lowest prices, Wells Fargo CEO John Stumpf said.

“California real estate on the low end has found its bottom,” Stumpf said Friday during a presentation to the BancAnalysts Association of Boston. “When we take a property back, we’re getting more than appraised value and we’re getting multiple bids on those properties.”

Sixty-eight percent of the San Francisco-based company’s credit-impaired option-ARM portfolio is in California, according to the presentation. Wells Fargo, the largest U.S. home lender, set aside $26.5 billion of option-ARMs under what it calls credit-impaired loans, or those loans whose losses were covered through accounting measures, when it purchased Wachovia last year.

The average option-adjustable rate mortgage originated by Golden West Financial before it was bought by Wachovia was about $220,000 to $240,000, or about 80 percent loan-to-value, Stumpf said.

Option-ARMs, or Pick-a-Pay loans, let borrowers defer interest payments and add them to the loan’s principal; some have low initial rates that increase in later years. About $1.2 billion of those loans stopped collecting interest in the third quarter, the company said.

Comments

David Overfield

November 9th, 2009 at 1:08 PM

Investors are helping to put a floor on home prices but only at the lower price points. Homes that may cash flow when rented are very hot right now. Also, homes that can be fixed up and resold (flipped) are also popular with investors.

We’ve found that the home in Phoenix between $100,000 to $200,000 are very competitive at the trustee sale auction. Homes price above $250,000 have a bigger discount from full retail price at auction.

There is still a huge amount of home loans about to reset or recast that may keep the foreclosure wave going during this recession.

We filmed 3 more trustee home tour videos yesterday.
Alan

November 7th, 2009 at 11:17 AM

Looks like CA RE might have bottomed thanks to all the RE investors. Is that happening in AZ, too?
————
Associated Press

Posted: 11/06/2009 05:56:45 PM PST
Updated: 11/06/2009 05:56:48 PM PST

The California real-estate market may have stopped falling for homes with the lowest prices, Wells Fargo CEO John Stumpf said.

“California real estate on the low end has found its bottom,” Stumpf said Friday during a presentation to the BancAnalysts Association of Boston. “When we take a property back, we’re getting more than appraised value and we’re getting multiple bids on those properties.”

Sixty-eight percent of the San Francisco-based company’s credit-impaired option-ARM portfolio is in California, according to the presentation. Wells Fargo, the largest U.S. home lender, set aside $26.5 billion of option-ARMs under what it calls credit-impaired loans, or those loans whose losses were covered through accounting measures, when it purchased Wachovia last year.

The average option-adjustable rate mortgage originated by Golden West Financial before it was bought by Wachovia was about $220,000 to $240,000, or about 80 percent loan-to-value, Stumpf said.

Option-ARMs, or Pick-a-Pay loans, let borrowers defer interest payments and add them to the loan’s principal; some have low initial rates that increase in later years. About $1.2 billion of those loans stopped collecting interest in the third quarter, the company said.

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