Discovery Bay, CA, August 12, 2010 - PropertyRadar (www.propertyradar.com), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for July 2010. Foreclosure activity was again mixed in July. Foreclosure filings and cancellations dropped after rising last month, while foreclosure sales rose after dropping last month."
Despite a tsunami of mortgage delinquencies we continue to see no signs of a foreclosure wave" says Sean O'Toole, Founder, and CEO of ForeclosureRadar.com. "Lenders and government intervention continue to delay foreclosures despite their continued failure to find a long term solution to unsustainable negative equity."
The discount from the market value at which 3rd Parties, typically investors, we're able to purchase properties at the trustee sale, varied by county. Orange County saw the toughest competition on the courthouse steps, with discounts from the market value of just 15.3 percent. Kern and Fresno Counties offered the largest discounts at 29.3 and 29.9 percent respectively. Statewide the average was 21.6 percent. Most investors resell properties they purchase at a trustee sale and must contend with the current occupant, past-due property taxes, senior liens, repairs, and resale expenses including commissions.
Notice of Default
Notice of Trustee Sale
Notice of Default filings is the first step in the foreclosure process. Notice of Trustee Sale filings set the date and time of auction and serve as the homeowner's final notice before the sale.
|Month||Notice of Default||Notice of Trustee Sale|
Back to Bank (REO)
Sold to 3rd Party
After the filing of a Notice of Trustee Sale, there are only three possible outcomes. First, the sale can be Cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements. Alternatively, if the property is taken to sale, the Bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank's opening bid, the property will be Sold to 3rd Party; if not, it will go back to the Bank and become part of that bank's REO inventory.
|Month||Cancellations||Back to Bank (REO)||Sold to 3rd Party|
Scheduled for Sale
Bank Owned (REO)
Preforeclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale canceled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party.
|Date||Preforeclosure||Scheduled for Sale||Bank Owned (REO)|
Foreclosure discounting compares the winning Bid Amount of properties sold at a trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an opening bid for each property, and if a 3rd Party does not make a higher bid the property will be sold Back to Bank (REO) for the opening bid amount. While 3rd Party bids are higher than the opening bid, properties Sold to 3rd Parties typically have lower opening bids to start with and therefore deeper discounts to both Loan Amount and Market Value.
Time to Foreclosure
Time to Resell - Bank
Time to Resell - 3rd
Time to Foreclose is the total time from the filing of the Notice of Default to the sale of the property at the trustee sale and reflects those properties sold in the month indicated. Time to Resell reflects how long it takes banks and 3rd parties to resell the properties they take back or purchase at trustee sale.
|Date||Time to Forclose||Time to Resell- Bank||Time to Resell - 3rd|
Foreclosure Activity By County
Notice of Default Notice of Trustee Sale Back to Bank (REO) Sold to 3rd Party