A Record Month for California Foreclosure Activity
Discovery Bay, CA, May 13, 2008 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates, today issued its monthly California Foreclosure Report. April foreclosure numbers were up in all categories, creating extraordinary indicators. Average daily auction sales exceeded 1,000 properties a day for the first time in California's history.
High-level findings include:
- Notices of Default - the filings for the first step in California's foreclosure process increased only slightly to set a new record of 44,101 new filings.
- Notices of Trustee Sale, which are issued approximately 3 months following a Notice of Default, increased 7.8 percent in April surpassing the previous record with a total of 29,892 new filings.
- April foreclosure sales at auction jumped 44 percent over March to a record 22,838 sales, with a combined loan value of $9.45 Billion. The majority of these sales received no third party bid and reverted back to the lender despite the largest across the board discounts ever offered at trustee sale auctions.
"We expected a significant increase in auction sales based on previous default patterns" said Sean O'Toole, founder of ForeclosureRadar. "Unfortunately, the continued increases in defaults tell us that the worst is still ahead. It is time for lenders to accept this reality, and start approving short sales rather than forcing more than two-thirds of troubled homeowners through the entire foreclosure process."Lenders added 22,324 properties to their real estate owned or "REO" inventory in April. Last month DataQuick reported that 38.4% of all home sales in California were from this REO inventory, equaling approximately 9,432 properties. Based on those levels, lenders are increasing REO inventories 1.36 times faster than they are able to resell them.In April, it took lenders an average of 140 days from Notice of Default to the property being sold at auction. Average discounts at auction were 25%, but nearly half of all properties taken to auction offered discounts of 30% or more from the current loan balance. The majority of these loans were 80% LTV first mortgages, making discounts of 40 to 50% from the prior sales price common in many parts of the state.The largest discounts offered in major Southern California counties were in Santa Barbara (29 percent) and Riverside (28 percent). The smallest were Los Angeles (19 percent) and Orange (21 percent). The spread was wider in Northern California, with Merced offering the states larges discounts (37 percent), and San Francisco the smallest (12 percent).In a sign that foreclosures are affecting every part of the state, foreclosure sales nearly doubled in both Marin County (96 percent increase), and Orange County (up 82 percent).
ForeclosureRadar April Report by County
RankChange In RankCountyNDFNTSSalesPopulationPer Sale% ChangeMarch 2008% ChangeApril 200710MERCED COUNTY63440043856331%1725%20SAN JOAQUIN COUNTY18321220115757631%399%33RIVERSIDE COUNTY50594101327459779%332%45ALPINE COUNTYNDND2621100%ND5-2STANISLAUS COUNTY121086178665420%330%6-2SACRAMENTO COUNTY27851827165383820%217%70SOLANO COUNTY84052449285927%369%8-3YUBA COUNTY1511228186221%153%98SAN BERNARDINO COUNTY41502982217791571%389%103LAKE COUNTY61396598644%364%111KERN COUNTY12498747781,002ND389%124CALAVERAS COUNTY3219431,06343%514%13-3SAN BENITO COUNTY5234541,06717%391%14-6CONTRA COSTA COUNTY179312239541,07911%283%15-4MADERA COUNTY2181831271,13714%877%16-2COLUSA COUNTYNDND181,19520%500%171MONTEREY COUNTY6322873021,40738%586%18-3SUTTER COUNTY12494631,4523%215%190PLACER COUNTY4703002111,50036%148%201IMPERIAL COUNTY2681451071,55739%106%21-1YOLO COUNTY2021291071,77919%257%220TEHAMA COUNTY3332341,81021%467%238SAN DIEGO COUNTY3523259316821,82350%213%24-1TULARE COUNTY4092442251,86918%400%250FRESNO COUNTY10706434651,93423%308%2610VENTURA COUNTY8185624161,96582%282%277EL DORADO COUNTY202124882,00273%126%28-4SONOMA COUNTY5023372362,03410%354%291AMADOR COUNTY3422182,11929%500%309SANTA BARBARA COUNTY3422311722,45167%244%3122MARIPOSA COUNTY6572,602600%ND32-3ALAMEDA COUNTY15068615582,6910%213%339ORANGE COUNTY2520166011332,71282%364%346LOS ANGELES COUNTY8276558737232,75258%340%35-8NAPA COUNTY12066462,923-12%254%361NEVADA COUNTY7351333,03227%267%379SAN LUIS OBISPO COUNTY159102863,06191%682%38-6SHASTA COUNTY16784573,184-10%128%396SANTA CRUZ COUNTY193105813,23976%326%403SANTA CLARA COUNTY14127135003,54747%585%41-13PLUMAS COUNTY17563,574-25%50%422BUTTE COUNTY14299583,74541%100%43-5KINGS COUNTY9155393,788-89%179%4411SISKIYOU COUNTY2215114,195450%450%45-12TUOLUMNE COUNTY3623134,479-24%117%46-5MONO COUNTYNDND34,5320%ND47-21MODOC COUNTY4124,918-50%100%480LASSEN COUNTYNDND75,06575%40%491MARIN COUNTY11272475,39096%327%50-3SAN MATEO COUNTY2691021186,13630%203%513MENDOCINO COUNTY3120146,460250%250%52-17TRINITY COUNTY4227,012-50%ND53-2HUMBOLDT COUNTY48141112,04822%0%54-2SAN FRANCISCO COUNTY187966312,67729%271%55-6DEL NORTE COUNTY112214,598-33%ND
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.
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