Foreclosure delays may be behind current peak in foreclosure activity
Discovery Bay, CA, September 16, 2008 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report for August 2008. Analysis show that Notices of Default, which indicate the start of the foreclosure process, increased in California by 4.8 percent; while both Notices of Trustee Sale and actual foreclosure sales dropped. With the exception of February, a traditionally slow month, Notices of Default have stayed in a tight range between 40,000 and 43,000 per month - a peak which may simply reflect the inability of lenders and trustees to process additional files.
High-level findings include:
- Notices of Default increased by 4.8 percent, to a total of 42,790 filings - almost perfectly offsetting the prior month's 4.6 percent decrease.
- Notices of Trustee Sale declined by 7 percent, to 36,292 filings in August.
- Properties taken to sale at auction decreased by 8.6 percent, to 26,309 properties, with a combined loan balance of $11 Billion.
- Of properties taken to sale, 96 percent went back to the lender, with a combined loan value of $10.55 Billion. Third party purchases continued to increase as the discounts offered by lenders also increased.