No Foreclosure Wave In Sight

Written by:
Written on:
August 13, 2010
Category:
Not Categorized

No Foreclosure Wave In Sight

Discovery Bay, CA, August 12, 2010 - ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for 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, were able to purchase properties at trustee sale, varied by county. Orange County saw the toughest competition on the courthouse steps, with discounts from 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 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 MonthPrior Year-4.82%-47.09%

Notice of Trustee Sale

Prior MonthPrior Year-18.91%-30.354%

Notice of Default filings are 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 sale.

9-Feb9-Mar9-Apr9-May9-Jun9-Jul9-Aug9-Sep9-Oct9-Nov9-Dec10-Jan10-Feb10-Mar10-Apr10-May10-Jun10-Jul497995862347337422034709347530370633817536534304782720025904313093313928901241672642125148211473455931556433553071140757342243311238558281702847527220285013407131599281033491328310

Foreclosure Outcomes

Cancellations

Prior MonthPrior Year-13.75%75.10%

Back to Bank (REO)

Prior MonthPrior Year13.46%-18.44%

Sold to 3rd Party

Prior MonthPrior Year16.72%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 Bank and become part of that bank's REO inventory.

9-Feb9-Mar9-Apr9-May9-Jun9-Jul9-Aug9-Sep9-Oct9-Nov9-Dec10-Jan10-Feb10-Mar10-Apr10-May10-Jun10-Jul6904635267077162867410818100048660875710487132871385913806165201843717280219621894216419920112145158641971314632143671315516018141651247113943119831536514615137751051811934126610941653230526942691328534113960368326293707363140314336404429843483

Foreclosure Inventories

Preforeclosure

Prior MonthPrior Year-20.18%-28.56%

Scheduled for Sale

Prior MonthPrior Year-4.12%0.55%

Bank Owned (REO)

Prior MonthPrior Year-1.05%-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 cancelled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to Bank at the trustee sale, and which the bank has not yet resold to another party.

9-Feb9-Mar9-Apr9-May9-Jun9-Jul9-Aug9-Sep9-Oct9-Nov9-Dec10-Jan10-Feb10-Mar10-Apr10-May10-Jun10-Jul159215179412185603174243186060175283171841169860154905157288146941152322140126157768152770144105156874125223641778239092002111824113141124874131300140382149456151573147570145977145260141669137741132269130953125559135488122901112792107762106139100206988299547993926935958911990551895298904388490874528240281536

Foreclosure Discounting

Foreclosure discounting compares the winning Bid Amount of properties sold at 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

<tr >Prior MonthPrior Year

Time to Foreclosure

-3.42%20.56%

Time to Resell - Bank

Prior MonthPrior Year0.75%13.03%

Time to Resell - 3rd

Prior MonthPrior Year-3.53%12.33%Time to Foreclose is the total time from the filing of the Notice of Default to the sale of the property at 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.

9-Feb9-Mar9-Apr9-May9-Jun9-Jul9-Aug9-Sep9-Oct9-Nov9-Dec10-Jan10-Feb10-Mar10-Apr10-May10-Jun10-Jul198176171180173187185191195198222229224225239235234226223231234240244238228220219220224224224232247252267269186214196183168146147141131133141149150153162163170164

Foreclosure Activity By County

Notice of DefaultNotice of Trustee SaleBack to Bank (REO)Sold to3rd Party

Written by:
Written on:
August 13, 2010
Category:
Not Categorized