No Foreclosure Wave In Sight

ForeclosureRadar Reports

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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.

Foreclosure Filings

Notice of Default

Prior Month -4.82%
Prior Year -47.09%

 

Notice of Trustee Sale

Prior Month -18.91%
Prior Year -30.354%

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.

Foreclosure Chart
Month Notice of Default Notice of Trustee Sale
Feb-09 49799 21147
Mar-09 58623 34559
Apr-09 47737 31556
May-09 42203 43355
Jun-09 47093 30711
Jul-09 47530 40757
Aug-09 37063 34224
Sep-09 38175 33112
Oct-09 36534 38558
Nov-09 30478 28170
Dec-09 27200 28475
Jan-10 25904 27220
Feb-10 31309 28501
Mar-10 33139 34071
Apr-10 28901 31599
May-10 24167 28103
Jun-10 26421 34913
Jul-10

25148

28310

Foreclosure Outcomes

Cancellations

Prior Month -13.75%
Prior Year 75.10%

Back to Bank (REO)

Prior Month 13.46%
Prior Year -18.44%

Sold to 3rd Party

Prior Month 16.72%
Prior Year 29.43%

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.

Foreclosure Chart
Month Cancellations Back to Bank (REO) Sold to 3rd Party
Feb-09 6904 16419 1266
Mar-09 6352 9201 1094
Apr-09 6707 12145 1653
May-09 7162 15864 2305
Jun-09 8674 19713 2694
Jul-09 10818 14632 2691
Aug-09 10004 14367 3285
Sep-09 8660 13155 3411
Oct-09 8757 16018 3960
Nov-09 10487 14165 3683
Dec-09 13287 12471 2629
Jan-10 13859 13943 3707
Feb-10 13806 11983 3631
Mar-10 16520 15365 4031
Apr-10 18437 14615 4336
May-10 17280 13775 4044
Jun-10 21962 10518 2984
Jul-10 18942 11934 3483

Foreclosure Inventories

Preforeclosure

Prior Month -20.18%
Prior Year -28.56%

Scheduled for Sale

Prior Month -4.12%
Prior Year 0.55%

Bank Owned (REO)

Prior Month -1.05%
Prior Year -18.63%

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.

Foreclosure Chart
Date Preforeclosure Scheduled for Sale Bank Owned (REO)
Feb-09 159215 64177 135488
Mar-09 179412 82390 122901
Apr-09 185603 92002 112792
May-09 174243 111824 107762
Jun-09 186060 113141 106139
Jul-09 175283 124874 100206
Aug-09 171841 131300 98829
Sep-09 169860 140382 95479
Oct-09 154905 149456 93926
Nov-09 157288 151573 93595
Dec-09 146941 147570 89119
Jan-10 152322 145977 90551
Feb-10 140126 145260 89529
Mar-10 157768 141669 89043
Apr-10 152770 137741 88490
May-10 144105 132269 87452
Jun-10 156874 130953 82402
Jul-10 125223 125559 81536

Foreclosure Discounting

Foreclosure Chart

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.

Foreclosure Timeframes

Time to Foreclosure

Prior Month -3.42%
Prior Year 20.56%

Time to Resell - Bank

Prior Month 0.75%
Prior Year 13.03%

Time to Resell - 3rd

Prior Month -3.53%
Prior Year 12.33%

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.

Foreclosure Chart

 

Date Time to Forclose Time to Resell- Bank Time to Resell - 3rd
Feb-09 198 223 186
Mar-09 176 231 214
Apr-09 171 234 196
May-09 180 240 183
Jun-09 173 244 168
Jul-09 187 238 146
Aug-09 185 228 147
Sep-09 191 220 141
Oct-09 195 219 131
Nov-09 198 220 133
Dec-09 222 224 141
Jan-10 229 224 149
Feb-10 224 224 150
Mar-10 225 232 153
Apr-10 239 247 162
May-10 235 252 163
Jun-10 234 267 170
Jul-10 226 269 164

Foreclosure Activity By County

      Notice of Default             Notice of Trustee Sale      Back to Bank (REO)       Sold to 3rd Party

Foreclosure Activity By County
 
 


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