In May the number of foreclosed properties in Orange County on the books of banks fell to account for only 0.5% of all home loans in the county.  The ratio of foreclosed properties to all home loans was 0.8% in both April ’09 and May ’08. These facts mean that bank-owned properties are selling, especially home priced under $500,000.

Unfortunately the number of homes that are in the process of foreclosure has increased to 2.1% in May – up from 1.3% in April. The ratio of mortgages at least 90 days late but without a notice of default jumped to 6.3% in May, from 4.6% in April and 4% a year ago. Although  loan modifications may help some people avoid foreclosure, statisitcs show that modifications work less than half the time.

It should also be noted that during the month of May the unemployment rate in Orange County rose 8.6% and the number of foreclosures typically rise and fall with the unemployment rate.