As many as 80 percent of defaulting homeowners may lose their home at auction
Discovery Bay, CA, February 15, 2008 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates, today issued its monthly California Foreclosure Report.The number of properties sold at foreclosure auction jumped by 55 percent in January to a total of 19,821, with a combined loan value of $8.06 Billion. Compared to the same period one year ago, this represents a staggering 454 percent increase.Notices of Defaults recorded in January numbered 38,617, up 16.4 percent from 32,948 in December, 2007. This increase follows a 45.1 percent increase from November to December. With a minimum of roughly four months between recording of a Notice of Default and the property being sold at auction, the recent increases in defaults clearly indicate that auction sales are likely to also increase further in the coming months. By comparing January sales to defaults four months ago, it appears that as many as 80 percent of defaulting homeowners may now lose their home at auction."We are the only source for same-day auction results," said Sean O'Toole, founder of ForeclosureRadar. "The auction sales are a far more accurate indicator of the foreclosure problem. Defaults have not risen nearly as rapidly as auction sales. While certainly more homeowners are getting into trouble, the far larger issue is that fewer homeowners are able to get out of foreclosure than ever before."Homeowners aren't the only party to foreclosure under pressure. This month 98 percent of auction sales went back to the lender after receiving no bids, despite the significant discounts now being offered by lenders at auction. Out of the 19,821 homes that went to auction, 13,950 were discounted, with an average opening bid discount of 16 percent. Of that, 4,624 had discounts of 30 percent or more. The majority of these discounts are from the amount owed on an 80 percent first mortgage made in the last 2 to 3 years, meaning that many of these properties are being offered at 50 to 70 percent of their prior value.At the county level, notable month over month increases in activity were widespread, with the majority of counties seeing increases in auction sales of 50 percent of more.
ForeclosureRadar January Report by County
RankChange In RankCountyNDFNTSSalesPopulationPer Sale% ChangeNov 2007% ChangeDec 200613SAN JOAQUIN COUNTY15071023100066685%700%2-1RIVERSIDE COUNTY53722858281369453%475%32STANISLAUS COUNTY107472762482464%609%42SACRAMENTO COUNTY22981790162885167%380%52YUBA COUNTY140917988465%618%64SAN BENITO COUNTY31296194597%510%7-4MERCED COUNTY54639124999116%759%80SAN BERNARDINO COUNTY3848189619191,03846%653%90SOLANO COUNTY6184463901,08455%370%102CONTRA COSTA COUNTY15259698141,26555%399%112KERN COUNTY11697306071,28553%467%122MADERA COUNTY2141321051,37588%3400%134PLACER COUNTY3942682271,394106%320%141SUTTER COUNTY11690611,49974%369%153MONTEREY COUNTY4462562421,75669%952%164YOLO COUNTY131991051,81378%600%17-1SAN DIEGO COUNTY3282183416121,90247%343%185VENTURA COUNTY6864103902,09678%509%193IMPERIAL COUNTY20690792,10958%618%20-1FRESNO COUNTY8105234202,14240%453%217SONOMA COUNTY4152782102,28586%577%22-11LAKE COUNTYNDND282,289-18%40%232EL DORADO COUNTY18391712,48265%154%245SANTA BARBARA COUNTY3051751662,54071%453%25-1ALAMEDA COUNTY11687435632,66753%398%2615PLUMAS COUNTY5482,681167%300%273TULARE COUNTY3632011512,78664%331%287COLUSA COUNTY19973,07375%600%292ORANGE COUNTY224711389743,15451%505%30-3AMADOR COUNTY2612123,17833%300%31-5SHASTA COUNTY12885573,18430%159%320LOS ANGELES COUNTY7814419332013,20150%446%331TUOLUMNE COUNTY2725183,23564%260%344SAN LUIS OBISPO COUNTY14479713,70882%407%351NAPA COUNTY10080363,73557%227%36-3NEVADA COUNTY6737254,00325%92%376KINGS COUNTY8056364,10489%350%382BUTTE COUNTY5233524,17768%420%39-2SANTA CRUZ COUNTY12861584,52332%427%40-1SANTA CLARA COUNTY10004863754,72944%451%419SISKIYOU COUNTY401185,768167%700%424SAN MATEO COUNTY2441461215,98489%317%431MARIPOSA COUNTY7136,07250%ND44-23TEHAMA COUNTYNDND106,153-47%233%452MARIN COUNTY10850396,496105%333%46-1MENDOCINO COUNTY3316136,95744%550%4711LASSEN COUNTYNDND57,090ND150%48-6DEL NORTE COUNTY1147,2990%ND495HUMBOLDT COUNTY3912149,466367%367%50-48MODOC COUNTY9219,836-89%-80%511SAN FRANCISCO COUNTY166725813,77076%205%
CALIFORNIA FORECLOSURE REPORT METHODOLOGYRankings are based on population per foreclosure sale. NDF indicates the number of Notices of Default that were filed at the county, and NTS indicates filed Notices of Trustee Sale. Sales indicates the number of properties sold at foreclosure auction. Percentage changes are based on monthly Sales. The data presented by ForeclosureRadar is based on county records and individual sales results from daily foreclosure auctions throughout the state—not estimates or projections.