Holiday schedules likely to moderate foreclosure increases through December
Discovery Bay, CA, December 16, 2008 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report for December 2008. Despite the clear impact that State Senate Bill 1137 had on foreclosure activity in September and October, November saw significant activity increases across all stages of foreclosure. From October to November, filings of Notices of Default increased 28 percent; Notices of Trustee Sales increased 10 percent and properties sold at auction increased by 14.8 percent.Despite these significant gains, foreclosure activity is still well below the peak activity level reached before SB 1137 took effect. The holidays are likely helping to slow the return to those levels. It is not unusual to see double-digit increases in properties sold at auction in January, after the November and December holidays. From December 2007 to January 2008, properties sold at auction increased 55 percent. Compounding the likely increases after the holidays is the fact that the number of properties currently scheduled for auction is near the peak levels reached in July 2008, while foreclosure sales are 44 percent lower.
High-level findings include:
- November Notice of Default filings increased 28 percent from October, to a total of 21,557 filings. Despite this increase Notice of Default filings remain 49 percent lower than the peak, reached in August 2008, of 42,416 notices. Year over year filings are down 16.1 percent from November 2007.
- Notices of Trustee Sale, which set the auction date, time and location, increased by 10 percent from October to November, to 27,941 filings. The November Notices of Trustee Sale represent a 52.8 percent year-over-year increase, but are still 28 percent below the peak levels reached in July of 2008.
- Properties taken to sale at auction increased by 14.8 percent from October, to 16,125 sales, with a combined loan balance of $6.9 Billion. This represents a 31 percent increase from November 2007. Of the mortgages sold at auction this November, 97 percent were first mortgages.
- Lenders took back 94 percent of the 16,125 properties sold at auction, with a combined loan value of $6.5 Billion. Third party purchases increased 16.2 percent from October 2008, an increase of 195 percent from November 2007.
- Statewide, the average discount for properties sold at auction in November was 38.6 percent, compared to11.5 percent from the same time last year. Discounts of 50 percent or more were offered on more than 38 percent of properties statewide in November 2008.