Investor activity increases at the courthouse steps
Discovery Bay, CA, June 11, 2008 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report. Lenders, technically called the beneficiary or "bene" by foreclosure auctioneers, took back $10.4 Billion in California loans as a result of foreclosure sales in May. Despite this record we saw a significant increase in investor purchases at auction.
High-level findings include:
- Notices of Default, the first step in California's foreclosure process, were down 2.5% for the month totaling 43,011 new filings. Daily average filings were actually up 2.4% to 2,009 filings per day.
- Notices of Trustee Sale can be issued 3 months following a Notice of Default and set the date, time and location of the foreclosure auction, increased 15.6 percent in May to a record 34,564 new filings.
- Sales at auction increased 11.8% to a total of 25,523 properties. Of those 24,831 received no bid higher than the lenders opening bid and became lender owned (REO). The combined loan value at the time of foreclosure on this new REO inventory exceeded $10 Billion for the first time.
- Despite more than 97% of foreclosed properties being returned to the lender, there was a notable 34.6% increase in properties purchased by third parties. We believe this third party bidding is due to a renewed investor interest as the lenders continue to increase discounts at auction.