No End In Sight For California Foreclosure Mess

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Written on:
April 16, 2008
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March sees record levels of California foreclosure filings

Discovery Bay, CA, April 15, 2008 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates, today issued its monthly California Foreclosure Report. March data indicates California's foreclosure crisis is accelerating and suggests that the normalization of the state's real estate market is still far from complete.

High-level findings include:

  1. Notices of Default - the first step in California's foreclosure process - jumped 14.3 percent during March, reaching a record high of 42,704. These new entries into the foreclosure pipeline will produce a jump in foreclosure sales and bank owned (REO) properties for months to come.
  2. Notices of Trustee Sale, which are issued approximately 3 months following a Notice of Default, jumped 47.9 percent in March setting a record high of 27,571 filings.
  3. Foreclosure sales at auction declined 6.5 percent in March to 15,833 with a combined loan value of $6.87 Billion. Lender inventories continue to swell as they failed to sell 97.7 percent of these properties despite offering an average discount of 21 percent off of loan value.

"Unfortunately, the foreclosure crisis in California is still deepening" said Sean O'Toole, founder of ForeclosureRadar. "The record jump in defaults last December are just now showing up in early April foreclosure sales, and the new record level of defaults this month won't begin to appear at auction until July."Continues O'Toole, "We see the housing pain in California continuing through the end of this year, as the market shakes off the effects of the credit mess and rampant overbuilding. As devastating as this may be, we do think that the end result - greater housing affordability for the average Californian, using conventional loan products - will benefit consumers and the housing industry alike."The largest discounts offered at auction were available in Merced County (32 percent off loan value on average), San Joaquin County (31 percent), and Monterey County (29 percent). Lenders offering the deepest discounts included Wilshire Credit Corp. (43.1 percent on average), World Savings (32.8 percent) and Downey Savings and Loan (30.4 percent).Properties are sold, on average, 145 days after the Notice of Default is recorded, up 13 days from March 2007. Total time to foreclosure can vary by Lender, for example, World Savings takes an average of 158 days from Notice of Default to sale at auction, while Indymac completes the foreclosure process in just 121 days on average.

ForeclosureRadar March Report by County

RankChange In RankCountyNDFNTSSalesPopulationPer Sale% ChangeFeb 2008% ChangeMarch 200711MERCED COUNTY6864843357376%698%2-1SAN JOAQUIN COUNTY17121262880757-6%323%31STANISLAUS COUNTY12709076537887%357%42SACRAMENTO COUNTY2614187113811,003-1%184%5-2YUBA COUNTY14598671,042-20%191%6-1RIVERSIDE COUNTY5383362818251,070-15%155%71SOLANO COUNTY7945533871,0932%303%81CONTRA COSTA COUNTY169011778581,2005%290%946ALPINE COUNTYNDND11,241NDND105SAN BENITO COUNTY9264461,25310%318%111MADERA COUNTY2341371111,301-1%1486%122KERN COUNTY12278945831,338-2%305%136LAKE COUNTY6234451,42536%150%1410COLUSA COUNTY2425151,43467%650%15-2SUTTER COUNTY13679611,499-13%205%16-6CALAVERAS COUNTY4518301,524-17%ND17-6SAN BERNARDINO COUNTY4032260612751,562-19%187%180MONTEREY COUNTY6333662191,940-3%366%19-3PLACER COUNTY4002831552,042-22%91%202YOLO COUNTY217124902,11510%275%21-4IMPERIAL COUNTY248105772,163-23%305%225TEHAMA COUNTY2929282,19833%133%236TULARE COUNTY3572341902,21437%375%24-3SONOMA COUNTY4883122142,243-7%224%25-5FRESNO COUNTY8975863792,373-12%211%26-19MODOC COUNTY3342,459-56%33%27-1NAPA COUNTY11663522,585-2%333%289PLUMAS COUNTY11482,68160%300%291ALAMEDA COUNTY13888535582,69115%198%306AMADOR COUNTY3422142,72456%100%31-6SAN DIEGO COUNTY3118199011252,726-12%112%320SHASTA COUNTY13182632,88119%215%336TUOLUMNE COUNTY4625173,42531%467%34-11EL DORADO COUNTY168122513,455-32%59%3523TRINITY COUNTY10543,506NDND36-5VENTURA COUNTY7904962283,585-12%175%373NEVADA COUNTY7553263,84918%333%38-10KINGS COUNTY8255373,993-26%131%39-6SANTA BARBARA COUNTY2961971034,093-6%110%40-5LOS ANGELES COUNTY7978497523514,358-6%183%4116MONO COUNTY17434,532NDND42-8ORANGE COUNTY256814966244,924-18%160%43-1SANTA CLARA COUNTY12335853405,215-3%342%44-1BUTTE COUNTY15981415,29817%37%45-4SANTA CRUZ COUNTY15076465,703-15%100%46-8SAN LUIS OBISPO COUNTY156108455,850-25%125%470SAN MATEO COUNTY350175917,95712%225%48-4LASSEN COUNTYNDND48,863-20%33%497DEL NORTE COUNTY9339,732ND50%50-1MARIN COUNTY120692410,55614%167%51-5HUMBOLDT COUNTY4222914,725-47%350%520SAN FRANCISCO COUNTY171994916,30058%206%53-2MARIPOSA COUNTY43118,2160%0%54-6MENDOCINO COUNTY3820422,611-60%-60%55-10SISKIYOU COUNTY269223,073-67%-50%

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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:
April 16, 2008
Category:
Not Categorized