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Fewer foreclosures, credit problems, a good sign for housing market

REO and short sale listings on the Central Coast continue to drop. In 2013, SLO County had the fewest “distressed property” listings (14%) since 2007, which was when the housing bubble was just beginning to pop. 

Through January in 2014, just 8% of listings were foreclosures or short sales, which is an excellent indicator of just how far the recovery has come. Distressed properties accounted for up to 39% of all County listings in the worst years of the downturn (2009 through 2011). (Keith Byrd).

Any questions about home loans in California? We are The Mortgage Experts: ask us anything! We have a loan program to fit every need. Call 805.543.LOAN or email us today.

Foreclosure saturation hurts neighborhood home values, because foreclosure and short sale properties are priced at the lowest end. Reduced pricing can bleed over to “normal” prices and put downward pressure on neighborhood property values.

RealtTrac data affirms this drop in foreclosure trouble. “Foreclosure activity”, which includes pre foreclosures (-0.0% year-over-year), auctions (-60% YoY), and bank repossessions (-77.8% YoY), are significantly lower than the previous year in SLO County. (RealtyTrac).

As the economy slowly improves, Americans are doing a much better job with debt in general. The national default rate declined to 1.34% in January’s national composite, which is down from 1.63% the previous year. (HousingWire).

Americans are getting better at managing debt even as we take on more. Household debt rose by $241 billion in the fourth quarter of 2013, including a 1.9% increase in mortgage debt (+$152 billion). (HousingWire).

We have put together a complete guide to obtaining mortgage finance after a “negative credit event” such as a bankruptcy, foreclosure, or short sale. See here. (Central Coast Lending).

The FHA Back to Work Program permits as low as a 12 month wait period if the payment difficulty came do to an “economic event”, such as a loss of job. Also, you can see here for our guide to repairing / improving your credit. (Central Coast Lending).

[Breaking news: 2014 Farm Bill extends, expands USDA loan]

We strive to be the Central Coast’s top source for real estate and mortgage news. Contact us with any feedback or suggestions. Email Rylan Stewart (rylan@centralcoastlending.com) the text “subscribe” to sign up for our twice-per-month newsletter.


Central Coast Lending is a California mortgage broker and direct lender based on the Central Coast of California in San Luis Obispo County. Call us today at 805.543.LOAN or email info@centralcoastlending.com to set up a free pre qualification. We are The Mortgage Experts: ask us anything!

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