Affordability Improve - 64% Can Afford Entry-Level Home
The percentage of households that could afford to buy an entry-level home in California was 64 percent in the fourth quarter of 2009, compared with 61 percent for the same period a year ago, according to a report released Wednesday by the California Association of Realtors.
The California Association of Realtors. C.A.R.’s First-time Buyer Housing Affordability Index measures the percent-age of households that can afford to purchase an entry-level home in California. It is the most fundamental measure of housing well-being for first-time buyers in the state.
The minimum household income needed to purchase an entry-level home at $257,940 in California in the fourth quarter of 2009 was $44,100, based on an adjustable interest rate of 4.5 percent and assuming a 10 percent down payment.
First-time buyers typically purchase a home equal to 85 percent of the prevailing median price. The monthly payment including taxes and insurance was $1,470 for the fourth quarter of 2009.
At $44,100, the minimum qualifying income was 4 percent lower than a year earlier when households needed $45,900 to qualify for a loan on an entry-level home. Home prices remained below peak levels, resulting in an improvement in housing affordability compared with the previous year.
At 84 percent, the High Desert region was the most affordable area in the state. The San Luis Obispo County region was the least affordable in the state at 48 percent, followed by the San Francisco Bay region and the Santa Barbara area, both at 50 percent.
Affordability nationwide is considerably higher than in California. The national affordability index stood at 77 percent with an entry-level home costing $146,970. That comes with a monthly payment, including taxes and insurance, of $840 and a minimum qualifying income of $25,200. In California, only the High Desert, Sacramento County, and the Riverside/San Bernardino region — all hard-hit by the recession — had a higher affordability index.
But of those three, only the High Desert’s entry-level price of $103,130 came in lower. It had a monthly payment of $590 and a minimum qualifying income of $17,700.
Throughout Los Angeles County, C.A.R. said the affordability index stood at 53 percent, with an entry-level price of $299,190, a monthly payment of $1,520 and a minimum qualifying income of $51,300.
FHA to Hike Downpayment for Buyers with Poor Credit
It won’t happen until this summer, but buyers with FICO scores lower than 580 will have to come in with a higher downpayment to qualify for a FHA loan, the government announced Tuesday.
The 3.5 percent minimum downpayment — highly favorable terms from one of the few sources of loans out there today — will remain for borrowers with a 580 credit score or higher.
But for those with lower credit scores, the minimum down payment will be hiked to 10 percent as of this summer if the borrower wants to participate in FHA’s mortgage insurance program.
Realtors have opposed efforts to increase the down-payment, insisting it would exclude too many borrowers without truly improving FHA’s reserves. There had been a proposal to raise the downpayment to 5 percent for all borrowers, but that appears to have been dropped with Tuesday’s announcement.
“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said FHA Commissioner David Stevens.
“These changes are among the most significant steps to address risk in the agency’s history,” he said. “Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”
FHA policy changes include:
• Mortgage insurance premium will be increased to build up capital reserves and bring back private lending. The first step will be to raise the up-front MIP to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge. If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP. This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing. The initial up-front increase will go into effect in the spring.
• Update the combination of FICO scores and down payments for new borrowers. New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA’s 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%. This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well. This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.
• Reduce allowable seller concessions from 6 percent to 3 percent. The cur-rent level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions. This change will go into effect in the early summer.
• Increase enforcement on FHA lenders. Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1. This is an operational change to make information more user-friendly and hold lenders more accountable.
• Enhance monitoring of lender performance and compliance with FHA guidelines and standards. HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes: Requiring all approved mortgagees to assume liability for all of the loans that they originate and underwrite; authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches.
In addition to the changes proposed Tuesday, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers going forward.
Mortgage Rates Drop Below 5%
Home-mortgage rates fell this week, with the average rate on 30-year fixed-rate mortgages dropping back below 5% as Treasury yields continue to fluctuate, according to Freddie Mac's weekly survey.
Recovery in the U.S. housing market has been fragile. Demand for new and used homes, after strengthening in earlier months, dropped in December because of cold weather and continuing joblessness. In addition, buyers sought to wrap up home purchases before a federal tax credit was set to expire in November, pulling sales in earlier.
The 30-year fixed-rate mortgage averaged 4.97% for the week ended Thursday, down from last week's 5.01% average and 5.16% a year ago. Rates on 15-year fixed-rate mortgages were 4.34%, down from 4.4% and 4.81%, respectively.
Five-year Treasury-indexed hybrid adjustable-rate mortgages averaged 4.19%, down from last week's 4.27% and 5.23%. One-year Treasury-indexed ARMs were 4.33%, up from 4.22% last week but down from 4.94% a year earlier.
Santa Clarita Valley Homes Sales Up 3% During 2009
Sales of existing single-family homes in the Santa Clarita Valley increased for the second consecutive year during 2009 with the 2,258 closed escrows up 2.9 percent from the tally reported in 2008, the Southland Regional Association of Realtors reported.
The increase in activity was not as pronounced as the 10.1 percent rise reported in 2008 primarily because tight financing and an extremely limited inventory of properties listed for sale restricted sales even as buyers returned to the market to capture favorable prices, low interest rates and a federal tax rebate.
Annual condominium sales also increased during 2009, posting a 0.5 percent gain over 2008. It was the first increase in condo annual sales after three consecutive years of declines. A total of 840 condos changed owners last year.
The 3,098 properties negotiated by Realtors during 2009 generated $1.16 billion for home buyers, sellers and the local economy. Typically, each sale yields many thousands of dollars more as buyers paint, landscape, remodel and purchase appliances to prepare a home for occupancy.
“Overall, what we’re seeing is very encouraging,” said Andrew Walter, the 2010 president of the Association’s Santa Clarita Valley Division. “The bottom has passed and in 2010 we’re likely to see more sales and a slow, steady increase in resale prices.”
The annual median price of single-family homes sold last year declined for the third consecutive year, although not as steeply as in 2008. The 2009 annual median of $407,208 was down 8.5 percent from the prior year, compared with a 22.0 percent drop posted in 2008.
However, Walter noted that the low point for resale prices of this real estate cycle came in December 2008 when the monthly median hit $385,000.
Ever since, prices have been trending higher as multiple bidders compete over a limited number of homes for sale. The year ended with a December median price of $417,500, the highest monthly median of the year.
“It’s very important for consumers to understand that while prices are still the most favorable in many years, the demand for entry-level homes is so strong that we’re seeing multiple offers on the limited number of properties listed under $500,000,” Walter said.
“We’re blessed that Santa Clarita is such a desirable place to live,” Walter said, “yet that translates into added competition on every listing and the need to present offers over list price if a buyer wants a real chance of success.”
With most buyers hoping to take advantage of a unique opportunity to buy a single- family home, condominium resale prices have been slow to recover, although there, too, the low point appears to have passed with the lowest monthly median of this cycle appearing in March.
The condo annual median price of $226,567 was 15.5 percent lower last year, which was an improvement from the 24.1 percent drop in the annual price seen in 2008. It was the third consecutive the condo annual median fell.
“Prices are still down from the prior year, which is what attracts buyers,” said Jim Link, the Association’s chief executive officer, “but the upward trend in prices has narrowed the gap.
“The market certainly is not healthy or even balanced, with the scale still favoring buyers,” Link said, “but it certainly has improved and is much better off than this time last year.”
December ended on a relatively positive note, even with a limited inventory. December single-family sales of 178 homes were off 7.3 percent from the prior year, but up 9.9 percent from November as buyers sought to lock in the federal tax credit, which had been set to expire at the end of November but has since been extended through April 30. December condo sales of 94 units were up 5.6 percent from the prior year and rose 30.6 percent from the November tally.
There were 738 properties listed for sale at the end of December throughout the Santa Clarita Valley. That was down 44.7 percent from the prior year. At the current pace of sales, the inventory represents a mere 2.7-month supply, down from the 4.7-month supply of December 2008. A supply of 5- to 6-months is believed to represent a “balanced” market. Pending escrows, a measure of future resale activity, increased 16.7 percent during December, which suggests the market will remain busy well into the Spring.
8 Important Tips for Protecting Yourself When Buying a Home
If you're getting ready to buy a house during what is typically the busiest buying and selling time of the year, then offers may be flying, loans may seem confusing, and everything may be moving way too fast. That's why it's important to do everything you can to protect yourself throughout the entire homebuying process.
Freddie Mac offers a number of tips:
Get pre-approved for a loan. With competition fierce, you'll want to be ready to make an offer. With a pre-approved loan, you'll have more clout as the seller considers your offer.
Make sure it's in writing. Don't settle for verbal agreements. If the seller says he'll replace the carpet or leave his washer and dryer, get it in writing.
Get a good-faith estimate.. Your mortgage lender is required to provide you with a good-faith estimate of closing costs within three days of receiving your application. They need to provide it in writing. If you don't have to pay loan application fees, you may want to compare lenders and compare closing costs.
Don't settle for the first lender you come across. Contact at least three lenders and compare rates.
Lock-in your rate. One of the most stressful parts of the loan process is watching rates inch up and down each day and trying to figure out when to lock in your rate. Once you do lock in, be sure to get a written statement that outlines your interest rate and length of the lock.
Get a home inspection. A professional home inspector will examine the house's major systems and let you know if there are any problems or defects. You can then use the information in your negotiations. Look for an inspector who is a member of the American Society of Home Inspectors. Members are required to have completed at least 250 paid professional home inspections and passed two written exams that test the inspector's knowledge. Also, ask for references.
Shop for homeowners' insurance as soon as your offer is accepted. The National Association of Realtors recently cautioned homebuyers to not take homeowners insurance for granted. You and your spouse may have a clean claims history and a stellar credit history - something insurance companies use to determine whether they will insure you - but it's not just you they're looking at . If the house you're eyeing has had claims, there's a chance they won't insure you, especially if it's a water-related claim.
Read everything. When you have the closing meeting to sign the mountain of papers, make sure you read through everything carefully and don't hesitate to ask questions if there are something you don't understand.
Finally, give yourself enough time between your closing and your move date, just in case there are delays in the closing process.
FHA Sets Tighter Lending Requirements
The Federal Housing Administration is implementing more-stringent lending requirements and higher borrower fees to cushion against rising defaults and stave off the need for a taxpayer bailout of the agency.
The FHA said Wednesday it will raise insurance fees that borrowers must pay, and it will cap the amount of cash that sellers can contribute for closing costs. It will also require higher down payments for the borrowers with poor credit scores, below 580.
"These changes are overdue," said David Stevens, the FHA commissioner, speaking to reporters. "FHA has a responsibility to be fiscally sound" and to provide homeowners with "financing that's going to give them the ability to live in their home long term."
The FHA, which backs as many as half of all new loans in certain housing markets, has come under fire for insuring home buyers who have put little or no money down as prices have plunged over the past three years. With its reserves falling sharply, the agency has been forced to walk a tightrope between protecting taxpayer dollars and helping to facilitate the housing recovery.
Josh Levin, a research analyst at Citigroup Inc., said the changes were less restrictive than expected and illustrated the "broader point that the federal government will likely find itself unable to extricate itself from support for the housing market."
Mr. Stevens characterized the changes as "significant but not overwhelming," and predicted that there would be "on the margin some curtailment of potential homeownership."
Starting this summer, borrowers with credit scores below 580 will be required to make a minimum 10% down. While the FHA doesn't have a credit-score cutoff, most lenders require a minimum 620 score. Fewer than 1% of FHA borrowers last year had credit scores below 580, according to LPS Applied Analytics.
The FHA opted not to raise minimum down payments for most borrowers, which are set at 3.5%. Some analysts had pushed for higher down payments and one bill in Congress would raise down payments to 5%.
Industry trade groups are strenuously opposed to such increases, and government officials, sensitive to concerns that tightening credit standards could hurt fragile housing markets, opted for less restrictive measures. "The FHA tightening arguably has no bite and is clearly a non-event," said Ivy Zelman, chief executive of Zelman & Associates, a housing-research firm, who called the changes a "major coup" for the housing industry.
The FHA, which currently insures more than one-third of all new home loans, doesn't lend money to home buyers; instead, it insures lenders against default on loans that meet FHA criteria.
In exchange for FHA backing, borrowers who take out FHA-backed loans must pay an upfront insurance premium, currently set at 1.75% of the total loan amount. The premium can be rolled into the loan. The FHA said Wednesday it will raise that fee to 2.25%, the second increase in the past two years. The change will go into effect this spring.
Also to boost its reserves, the FHA will ask Congress to increase a separate insurance fee that borrowers pay annually. If approved, that would allow the FHA to boost the annual fee while easing the upfront fee.
The FHA also will reduce the amount of money that sellers can kick in for closing costs to 3% of the sale price, down from the current level of 6%. The higher cap led to abuses where sellers "heavily marked up the purchase price" to compensate for their contribution, says Lou Barnes, a mortgage banker in Boulder, Colo.
The value of the FHA's reserves to cover losses has fallen to $3.6 billion, about 0.5% of the $685 billion in loans outstanding and down from 3% a year earlier. Congress requires the agency to maintain a 2% capital-reserve ratio and if the agency were to run short of cash to cover projected losses, it likely would have to ask Congress for money for the first time ever. If the larger insurance fee had been in place last year, the FHA would have boosted its reserves by more than $1 billion.
Mr. Stevens said he expected that the agency's performance could see some "bumps and bruises in the months ahead" but said it was generally "headed in a positive direction."
The FHA also announced a series of measures to boost its ability to police lenders that originate loans with FHA backing, and the agency will ask Congress for greater authority to take action against lenders who originate loans with high rates of default.
"Mortgage lenders will find the new rules painful but necessary," said Howard Glaser, an industry consultant. He says the rules were past due given that "an 'anything goes' environment" had prevailed in recent years as former subprime brokers migrated into FHA-backed loans.
By NICK TIMIRAOS
FHA Waives 90 Day No Flip Rule for 1 Year
As almost everybody has been saying all along … short sale and REO flipping are becoming more and more accepted by the government and major lending institutions. This is evidenced, among other things, by Freddie Mac’s recent bulletins, updated credit policies by Wells Fargo to allow for C buyer financing, and revised title bulletins stating that the C purchase price does not need to be revealed to the A lender as long as certain disclosures are made.
Today, the FHA has rescinded its 90 anti-flipping rule and will, for a period of 1 year, allow FHA buyers to obtain loans on properties that have been recently purchased by investors.
There are a few details that you need to understand (e.g. if the resale is 20% higher than the investor’s purchase certain safeguards must be met.)
If you enjoy reading legalese, the waiver of 24 CFR 203.37a(b)(2) may be found here:
http://www.hud.gov/offices/hsg/sfh/waivpropflip2010.pdf
Fixer Uppers, Wise Investments or a Money Pit?
Fixer Uppers, Wise Investments or a Money Pit?
Learn how to spot a fixer-upper with good potential and figure out what makes a good investment or what makes a bad one.
Would you spend $650,000 for a beachfront home with sagging shutters, no landscaping, peeling paint, old appliances, outdated wallpaper and a generally drab exterior?
On paper, the house sounds less-than-desirable -- okay, it sounds hideous. But before you answer, consider that this potential fixer-upper is located in California jus t steps from the Pacific. Drab as it may be, could this home sparkle one day? With a coat of paint, some "sweat" equity, and thorough revamping inside and out could this property be an investment gem?
All homes are different, but there are certain criteria which can help you spot a fixer-upper with good potential. Here are a few basic questions to ask:
What needs to be changed?
There are some homes which are structurally sound that require only cosmetic changes -- say that worn carpet from the 1960's, the historic appliances, or that inefficient heating system which consumes more fuel than a high school.
It makes sense to inventory a home to see what can remain and what must go. A good home inspection can help you spot mechanical, structural, and system upgrades that should be made, and also provide some cost estimates.
Does the area support a new and higher price?
If you buy a home for $300,000 and add improvements worth $100,000 are you ahead if area homes only sell for $350,000? What about $400,000? You need to recover the value of your investment, your time, and the cost of improvements. Many who specialize in fix-up work won't touch a project unless they can get a 100 percent mark-up -- two dollars in new value for each dollar invested.
What about the land?
In some close-in areas a home may simply not be worth an up-grade, instead it's the land and location which have value. In this case, the question is not whether to improve, it's whether to tear down. Essentially, the property's purchase price is equal to the combination of what you pay to buy it plus the expense of removing the old house. The addition of a new house is extra.
Who will do the work?
The economics of fixing-up vary enormously depending whether you're considering a do-it-yourself project or reconstruction contracted out to professionals. For the lowest cost and highest quality, it often makes sense to do both -- do much of the work yourself and then call in professionals for specialized work such as wiring, gas, and roofing.
Do You Need Repairs Or Remodeling?
According to Addie Mae, a mortgage lender, those contemplating the purchase of a fixer-upper should consider first whether the home "is in need of repair, remodeling, or both. Many homes need both types, but both don't provide equal returns on your investment."
Repair work, according to Addie Mae, usually falls under the "out of sight, out of mind" category and includes such major projects as plumbing, electrical systems and foundation repair. Remodeling, though labor-intensive, involves aesthetic projects such as kitchen updates, installing tile or wood floors, painting bathroom cabinets, etc.
"The important thing to remember is repair work usually costs money, while remodeling makes money," Addie Mae advis es. "You may find a home needing $25,000 in repair costs may only be priced $15,000 below current market value. On the flip side of that, a home in need of a little cosmetic painting may be $10,000 below market value.
"One way to turn that equation around is to make your repairs into a remodel," the lender advises. "For example, if you need to replace a large amount of dry rot in a wall, try adding a picture or bay window. If you need to replace the roof anyway add skylights. If you have sheetrock damage as well you might consider vaulting the ceiling or adding recessed lighting. These simple things can turn what would normally be a money drain into a money maker."
How Much Time Do You Have?
The general rule for fixing up is that everything takes longer than planned. If you need to re-sell quickly, then fixing-up becomes increasingly risky. If you have more time available, getting the job done becomes more plausible.
How Will You Pay For Your Fixer-Upper?
A fixer-upper requires two forms of financing: acquisition money to buy the home and additional dollars to do the actual repairs and improvements. In the best case, you want one loan to provide both forms of financing so that you do not have to pay for a second closing. Some mortgages to consider include the FHA 203(k) program, Fannie Mae's HomeStyle loans, Freddie Mac's HomeWorks financing, and similar programs. If you now live in a home and need money for improvements, consider HUD's Title 1 program for loans up to $25,000,
Be aware that for financing purposes it makes a big difference whether you are an owner-occupant or an investor not living on the property. For details, speak with brokers and lenders.
What is a CDPE?
What is a CDPE?
A Certified Distressed Property Expert® is a real estate professional with specific understanding of the complex issues confronting the real estate industry, and the foreclosure avoidance options available to homeowners. Through comprehensive training and experience, CDPEs are able to provide solutions for homeowners facing hardships in today’s market, specifically short sales.
The prospect of foreclosure can be financially and emotionally devastating, and often homeowners proceed without guidance of any kind. The developers of the CDPE Designation believe that the best course of action for a homeowner in distress is to speak with a well-informed, licensed real estate professional. They have the tools needed to help homeowners find the best solution for their situation. Often, when other options have been exhausted, CDPEs can help homeowners avoid foreclosure through the efficient execution of a short sale.
While enduring financial difficulties is challenging for any family, the process of finding a qualified real estate professional should not be. Selecting an agent with the CDPE Designation ensures you are dealing with a professional trained to address your specific needs.
As a A Certified Distressed Property Expert (CDPE), I don’t merely assist in selling your property, I help save my clients in need.
For more information, Contact me today to discuss your options.
Should You Invest in Foreclosures?
Periodically I hear from readers who want to make $1 million in real estate -- quickly and with no money down. Usually they want to know more about real estate foreclosures -- how to buy them and how to profit from such homes. I've participated in a couple of these deals, and I'm now working on my second million -- I gave up on the first.
Foreclosure properties can be a good place to invest for exponential growth (or loss). There are some deals out there for little or no money down, but potential investors should take precautions because foreclosed properties can involve significant risks.
There are various ways to invest in foreclosure properties. The first and probably most popular is to purchase a property, fix it up and then rent it out, hopefully creating a positive monthly cash flow. The investor then becomes a landlord, with all the responsibility of an investment property owner.
The second way to invest is to seek out foreclosures or "handyman" specials, buy them, invest more money to fix them up and then sell them, taking -- hopefully -- a profit once the house is sold.
A third approach is to purchase a foreclosure that is underpriced and selling it immediately at a higher value.
One way to sell homes for a higher value is to take back a mortgage. For example, let's say a house worth $100,000 is sold at a foreclosure to an investor for $50,000. The investor may put down 10 percent and ass ume or create a new mortgage for $45,000. The investor then advertises the property at a discount, say $80,000, offering 100-percent seller financing (remember, we're figuring that like houses are worth $100,000).
The owner hopes to create a sense of urgency by underpricing the house and pulling in buyers.
If successful, the investor takes a promissory note from the new purchaser for $80,000. He has now created a $35,000 note for himself (the difference between the $80,000 sale price and the original $45,000 mortgage). The new buyer makes payments to the investor for an $80,000 loan and the investor makes payments on the original loan for $45,000. In real numbers, here's what it would look like.
If the original loan is for $45,000 at 8 percent over 30 years, the principal and interest is $366.88. When the second buyer takes a note for $80,000, the investor may charge a bit higher interest since he's offering 100 percent financing (which is normal in the mortgage world).
Let's say he offers an $80,000 loan, 9.5 percent over 30 years. The monthly payment is $672.68, creating a positive cash flow of about $306 per month.
If the borrower stays in the house for 30 years, the investor will make $88,295 in interest and $30,000 in capital gains after he's paid his own interest on the first note for a total return of $118,295. Not a bad return on a $5,000 downpayment.
Keep in mind that not all mortgages allow an owner to "wrap" a second mortgage onto original loan. Most loans today contain a "due-on-sale" clause, meaning if the property is sold, the first trust must be paid off immediately. Wraparound financing is popular when investors purchase foreclosed Veterans Affairs (VA) properties as the VA allows wrap-around loans in such cases.
Before you go out, checkbook in hand and ready to bid away, take some advice first.
If you're deciding to invest in foreclosure properties with a spouse or with other investors, be sure that everyone understands this form of investing. You are about to enter a world of hi gh finance, property management, calls in the night from tenants and other risks that regular homeowners never experience.
Second, get educated. Reading this column does not constitute preparing the first-time investor to start bidding on properties. There are plenty of real estate agents and auctioneers who do this on a daily basis and would be happy to educate you in the world of foreclosure properties. Also, visit the bookstore for guides by reputable authors who know investment intricacies.
Third, be realistic.
- Not all foreclosures are good deals.
- Not all foreclosed properties are available at discount.
- If you take back a loan your buyer could default.
- Most loans today prohibit wraparound financing.
- Repairs might be far more than you expect.
- Not all tenants pay their rent on time -- or at all.
- Some renters damage property.
- Changing interest rates could impact your bottom line.
- It may not be possible to re-sell the property without extensive -- and costly -- repairs.
- Not every deal yields a profit.
- If you have a profit you may face taxes.
- If you only look at foreclosures you may miss other investment opportunities.
The list of potential downers goes on...and on and on.... Think of it this way: If making money with foreclosures was both easy and a sure bet every time, no one would bother with IPOs -- or jobs.
Fourth, get professional help from brokers, lenders, attorneys, accountants, home inspectors, and others.
And don't worry, foreclosure properties are not about to disappear. The mortgage industry is already reporting that delinquencies on mortgage payments are up these days in the latest economic slowdown, meaning, if anything, we'll be seeing more foreclosures on the auction block.
