April Foreclosure Notices Drop from March Record Levels
Discovery Bay, CA, May 12, 2009 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report for April 2009. In a reversal from the prior month, foreclosure notices dropped while foreclosure sales rose. Sales at auction rose by 35 percent overall and a record number of those properties were purchased by third parties at an average 28 percent discount from estimated market value. Notices of Default, the first step in the foreclosure process, dropped by 18.2 percent from the record level set the prior month. Notices of Trustee sale, which set the auction date and time, also dropped by 8.5 percent from the prior month.
High-level findings for April 2009 include:
- Notices of Default remained near earlier record levels, despite falling 18.2 percent from March to 42,675 filings. Year-over-year filings dropped by just 1.1 percent, though April of 2008 had held the record for Notices of Default until March 2009.
- Notices of Trustee Sale declined by 8.5 percent to 29,552 filings, a .8 percent decrease from the prior year, and a 24.2 percent decrease from the peak reached in July 2008.
- Foreclosures taken to sale at auction increased by 35 percent, to 13,550 representing $6.0 Billion in loan value. Despite the significant increase, these trustee sales remained 40.7 percent lower than the prior year, and 52.0 percent lower than the peak reached in July 2008. Nearly 90 percent of the foreclosed loans this month were originated between January 2005 and December 2007.
- Lenders took back 11,916 foreclosures for which no third party bid was received representing $5.3 in total loan value. Of these loans, nearly 99 percent were first mortgages, with many of these foreclosures wiping out the secured interest of junior lenders. Potential losses by junior lenders exceeded $623 Million across 6,911 wiped out junior loans.
- The number of foreclosures sold to third parties increased in April to 1,634 a 52.3 percent increase over March. Though the increase was significant, the percentage of foreclosures sold to third parties remains just 12 percent of the total, with 88 percent going back to the lender. The number of foreclosures sold to third parties increased 217.9 percent increase from April 2008.
- Lender discounts at auction decreased slightly to an average of 40 percent with Merced, San Joaquin, Stanislaus and Monterey counties seeing the largest discounts at 47 to 49 percent on average.