California Foreclosure Report Notes Big Lender Discounts In November

Written by:
Written on:
December 14, 2007
Category:
Not Categorized

Banks and lenders start to aggressively discount at auction

Discovery Bay, CA, December 13, 2007 - ForeclosureRadar™, the only web site that tracks every California foreclosure with daily updates on foreclosure auctions, issued its monthly California Foreclosure Report today which showed a total of 12,282 properties with a loan value of $4.91 Billion dollars sold at auction in November. This was a 432 percent increase over the same period in 2006, and a slight reduction compared to October which had a total of 12,336 with a value of $4.968 Billion dollars. Although the month to month comparison appeared to decrease, the average daily sales actually increased 20 percent from October due to the fewer number of auction sales days in October versus November.

"A notable sea change occurred in November. Lenders are starting to aggressively discount properties" said ForeclosureRadar founder, Sean O'Toole. "As the only service that tracks opening bids at auction, we were surprised by the size of the discounts, and even more surprised that most still go back to the bank with no investor bidding."

The ForeclosureRadar report noted that the average lender discount was $48,000 in November, up from $9,000 at the beginning of the year. Also noted was the percentage of sales being discounted, which has doubled to 66 percent. Lenders are clearly becoming anxious to avoid taking on more real estate owned (REO) assets.

The following are examples of foreclosure auctions where the lender significantly discounted the opening bid from the amount owed on the loan. In the case of 8215 Shay Circle in Stockton, the home was purchased new in January, 2006 for $481,000. The loan defaulted in 2007 and the lender discounted the opening bid at auction in November to $240,000. This particular property went back to the bank with no investor bids.

Property AddressLoan Amount /Opening BidDiscount /Percent Discount8215 Shay CircleStockton, CA 95212$419,416.16 /$240,000.00$179,416.16 /42.8%163 Creekside CircleSacramento, CA 95823$286,970.96 /$168,000.00$118,970.96 /41.5%7465 Newcomb StreetSan Bernardino, CA 92410$274,730.54 /$162,000.00$112,730.5441%614 S Clementine StreetAnaheim, CA 92805$422,012.64 /$318,750.00$103,262.64 /24.5%7485 Gayneswood WaySan Diego, CA 92139$522,448.44 /$367,127.54$155,320.90 /29.7%1177 California Street 1507San Francisco, CA 94108$939,088.24 /$710,000.00$229,088.24 /24.4%701 6th AvenueRedwood City, CA 94063$612,529.12 /$488,750.00$123,779.12 /20.2%

California Foreclosure Statistics By County

RankChange In RankCountyNDFNTSSalesPopulationPer Sale% ChangeOct 2007% ChangeNov 200615MERCED COUNTY41228825397539%1481%2-1SAN JOAQUIN COUNTY10836996641,0032%630%32SACRAMENTO COUNTY2011147011321,2247%355%43YUBA COUNTY10861571,22512%338%5-1STANISLAUS COUNTY9275334191,2283%525%6-4RIVERSIDE COUNTY2272218715841,233-3%458%71SOLANO COUNTY6313903151,34225%650%83CONTRA COSTA COUNTY12928416611,55721%536%91KERN COUNTY9366184791,6289%477%104SAN BENITO COUNTY4528331,74627%725%11-2SAN BERNARDINO COUNTY1827157610721,858-8%489%120PLACER COUNTY3012161532,069-4%410%130MADERA COUNTY137102682,1230%656%141SUTTER COUNTY11463422,1772%250%151LAKE COUNTYNDND292,2114%222%1630PLUMAS COUNTY5492,383350%800%175MONTEREY COUNTY3882181702,49926%844%180EL DORADO COUNTY13979682,591-1%518%192FRESNO COUNTY6814233332,7019%693%20-1IMPERIAL COUNTYNDND612,7312%663%2110SONOMA COUNTY3231871463,28735%535%221ALAMEDA COUNTY4322764283,508-3%386%2321GLENN COUNTYND483,581167%700%2419TUOLUMNE COUNTY1918163,639129%220%253NAPA COUNTY8041353,8416%3400%266NEVADA COUNTY5035263,84918%333%27-1SAN DIEGO COUNTY149113507933,867-6%210%28-8YOLO COUNTY11980493,885-25%600%294TULARE COUNTY2721561083,89519%370%30-3VENTURA COUNTY3572791874,371-16%450%31-6TEHAMA COUNTYNDND144,395-18%180%324SHASTA COUNTY10576394,65318%144%33-4SANTA BARBARA COUNTY140126894,737-11%345%341SAN LUIS OBISPO COUNTY10166554,78615%323%353BUTTE COUNTY5433425,1728%200%363KINGS COUNTY6828275,47117%350%370ORANGE COUNTY8878985455,637-2%382%38-4LOS ANGELES COUNTY3654314316536,198-15%335%39-9AMADOR COUNTY221566,356-33%100%407HUMBOLDT COUNTY2213196,97590%533%410SANTA CLARA COUNTY6734062377,4820%339%429SISKIYOU COUNTY171067,691100%500%4310MARIPOSA COUNTYNDND29,108100%ND441SAN MATEO COUNTY15490749,7853%252%45-5SANTA CRUZ COUNTY114742510,494-38%733%462MONO COUNTYNDND113,5970%ND47-5CALAVERAS COUNTYNDND315,237-50%ND48-24LASSEN COUNTYNDND217,726-80%0%491MARIN COUNTY70311221,112-29%140%504COLUSA COUNTYNDND121,5120%ND514MENDOCINO COUNTY279422,6110%100%520SAN FRANCISCO COUNTY89362828,524-40%180%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.

Written by:
Written on:
December 14, 2007
Category:
Not Categorized