Tuesday, November 20, 2007

97% of foreclosures going back to the bank

From the Central Valley Business Times.com:

October foreclosure sales increased by 40 percent from September with a total of 12,336 properties – with a loan value of $5 billion -- sold at auction statewide, according to figures compiled by ForeclosureRadar.

The Discovery Bay-based company operates a Web site that it says tracks every California foreclosure on a daily basis.

The October figure is a 568 percent increase over the same period in 2006.

There were 8,818 properties sold in September in foreclosure auctions with a value of $3.6 Billion dollars, according to ForeclosureRadar.

“We see no sign of a foreclosure peak at this point, and we don't expect to see one until the third or fourth quarter of 2008 at the earliest,” says Sean O’Toole, founder of ForeclosureRadar.

“The sales we are seeing now are from missed payments in March. So current auction sales really have not yet been impacted by either August’s liquidity crunch or the ARM reset peaks this month and again in March 2008,” he says.

The October ForeclosureRadar report notes that notices of default were up 11.9 percent though on a daily average basis they were down 8 percent due to the limited recording days in September. Notices of sale were up 33.5 percent to 18,929 – compared to 14,000 in September and 13,500 in August. Sales were up 39.9 percent from September.

The report also notes that third parties purchased 382 properties versus 11,953 that went back to the bank.


Funny Circus Bears said...

Staggering numbers, and just the beginning.

xs10shell said...

I saw an ad for a development of 42 new houses in Oxnard going to auction with min. bids of about 40% of original pricing. So out of curiosity I looked on the auctioneers website (Kennedy Wilson). The properties and the discounts I saw listed there from all over the state was just plain frightening.

Ichabod said...

As of 10:15 am Tuesday, November 27:
In Kern County on the MLS (Bakersfield Association of Realtors), there are 4,920 residential properties listed for sale. Of that, 797 (16%) are bank owned REOs, and 648 (13%) are short sales.

Short sales have a horrible time selling because the lenders take FOREVER to approve them. I had a client submit an offer for a short sale property in August. We didn't hear a counter until the end of October! We quickly submitted a counter that was verbally accepted, and then waited for a response until my buyer got impatient and cancelled halfway through November! I finally heard from the lender the day after he cancelled- "we are about to submit your offer for final approval." They held on to the offer for almost three weeks and NEVER submitted it! I called that lady and e-mailed her on a daily basis- toward the end three times a day. Crazy!