Posted by: The Tim

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

15 responses to “Foreclosure Notices Still Spiking Around Seattle”

  1. softwarengineer

    FCs Worsening and Spiking Again Seattle

    This data tracking obviously attracts down-thumbs.

    Rate this comment: Thumb up 0

  2. The Desponder

    Do you guys think the Fed’s recent decision to purchase mortgaged back securities as part of QE 3 (or 4, depending on how you count them) will effect the way lenders treat defaults and foreclosures? I imagine that the gov’t is willing to buy MBS could increase the number of mortgages issued like the good ol’ days of the bubble years, but to a lesser degree. Could MBS purchases also lead to banks selling bad loans to the gov’t? And, would that slow down or speed up foreclosures?

    Rate this comment: Thumb up 0

  3. Jonness

    RE: The Desponder @ 2 – I’m not sure how it will affect defaults, but it should drive down the cost of mortgages while driving up the number issued. Interestingly, incomes have been crashing for four years and counting. This economy is plain whack.

    “New numbers that have just been released show that things are getting worse for American families. According to the U.S. Census Bureau, median household income declined to $50,054 in 2011. That is a 1.5 percent decline from the previous year, and median household income has now fallen for 4 years in a row. In fact, after adjusting for inflation median household income has not been this low since 1995. These new numbers once again confirm what so many of us have been talking about for so long – American families are steadily getting poorer. Incomes are going down and the cost of living just keeps going up. This dynamic is squeezing more Americans out of the middle class every single month. Others just keep going into more debt in an attempt to maintain their previous lifestyles.”

    http://world.hawaiinewsdaily.com/2012/09/things-are-getting-worse-median-household-income-has-fallen-4-years-in-a-row/

    Rate this comment: Thumb up 0

  4. Kary L. Krismer

    If would be nice to think that some of the surge is due to trustee’s making corrections to NTS as a result of the Bain v. MERS decision. I’ve only looked at a very small sample (less than 5 probably) but have not seen any evidence of that. One sale I saw was delayed one week, but that could have been for any reason. They seem to just be plugging ahead as if the case never came down.

    Rate this comment: Thumb up 0

  5. Lo Ball Jones
  6. Hugh Dominic

    My guess is the banks got the message that home prices in Seattle are now strong. So they want to sell them now.

    Rate this comment: Thumb up 0

  7. HappyRenter

    Does the Fed hope that QE3 will rush people into buying a home?

    Rate this comment: Thumb up 0

  8. Marc

    RE: Kary L. Krismer @ 4 – After seeing your comment about MERS and business as usual I went back and re-reviewed a note and deed of trust for a deal that just closed this week. Sure enough, MERS is still using the “solely as nominee for Lender and Lender’s successors and assigns” language. I guess they really don’t give a $#!@ what the Washington State Supreme Court has to say.

    Rate this comment: Thumb up 0

  9. Blurtman

    RE: The Desponder @ 2 – ” Could MBS purchases also lead to banks selling bad loans to the gov’t? ” That’s the idea. Create crap securities, obtain fraudulent Triple A ratings, sell them to suckers, get huge bonuses. What, the same institutions that engaged in this fraud were left holding some of this crap when “the music stopped.” No problem. The Fed will pick up what Fannie and Freddie did not. Ain’t taxpayers dumb? Vote for Obama, or vote for Romney. Won’t change a thing. But you obey the law now, ya hear?

    Rate this comment: Thumb up 0

  10. redmondjp

    By Blurtman @ 9:

    RE: The Desponder @ 2 – ” Could MBS purchases also lead to banks selling bad loans to the govâ��t? ” That’s the idea. Create crap securities, obtain fraudulent Triple A ratings, sell them to suckers, get huge bonuses. What, the same institutions that engaged in this fraud were left holding some of this crap when “the music stopped.” No problem. The Fed will pick up what Fannie and Freddie did not. Ain’t taxpayers dumb? Vote for Obama, or vote for Romney. Won’t change a thing. But you obey the law now, ya hear?

    You got it.

    Privatize the gains; nationalize the losses! That’s how the real money is made these days . . .

    Rate this comment: Thumb up 0

  11. Kary L. Krismer

    By Marc @ 8:

    RE: Kary L. Krismer @ 4 – After seeing your comment about MERS and business as usual I went back and re-reviewed a note and deed of trust for a deal that just closed this week. Sure enough, MERS is still using the “solely as nominee for Lender and Lender’s successors and assigns” language. I guess they really don’t give a $#!@ what the Washington State Supreme Court has to say.

    I could see a very good excuse for that if they were past the day for an owner to contest the sale. And maybe possibly an excuse if the NTS had already been filed. The real test will be what happens for the situation where the entire process was started after the Bain decision, if not earlier with NTS being filed after.

    It’s almost as if the decision being made is to proceed as usual and deal with those who object. That probably makes sense from the banks’ point of view, and perhaps even many owners’ points of view, but I’m somewhat surprised the title companies are going along with it.

    Maybe the problem is simply that the Bain decision is somewhat of a mess, and they’re waiting for the District Court to issue a decision which makes some sense?????

    Rate this comment: Thumb up 0

  12. apartment boy

    The Federal Reserve Bank is privately owned.
    O/T but the FDIC is 100% funded by quarterly insurance premiums paid by member banks.
    Hate to ruin the party with an inconvenient truth…but their losses aren’t nationalized(shout-out to Al Bore).

    Rate this comment: Thumb up 0

  13. Kary L. Krismer

    RE: apartment boy @ 12 – Four years ago you could have said something similar about Fannie and Freddie.

    I suspect though that F&F were something you could have said that about stronger than the FDIC. For F&F there was just an implied suggestion that the federal government would stand behind their bonds, but for the FDIC I think it’s explicit.

    I’m not sure the funding source matters all that much.

    Rate this comment: Thumb up 0

  14. Jill Schlicke

    Lo Ball Jones that was funny.
    Kary and Marc, have we heard anything from the title companies on this?

    Rate this comment: Thumb up 0

  15. Kary L. Krismer

    RE: Jill Schlicke @ 14 – I have not, but there’s no reason I would hear directly.

    I did have someone interested in bidding on a house being foreclosed, and they were going to be paying cash. I advised them to talk to a RE attorney prior to bidding on it because it was a MERS DOT. They opted to not bid, and apparently no one else did either because the bank bought the property back. Not sure if the bank wanted too much or if MERS taints the ability to get short term financing through the hard money lenders.

    Rate this comment: Thumb up 0

Leave a Reply

Do you want a nifty avatar picture next to your name, instead of a photograph of Tim's dog? Just sign up with Gravatar, and make sure to use the same email address in the form below. It's that easy!

Please read the rules before posting a comment.

You have 5 comments remaining on this post.

Archives

Find us on Google+