California Foreclosure Activity Drops

By
Real Estate Agent with Brentwood Real Estate, Short Sales, Foreclosures, HAFA BRE# 01446530

California Foreclosure Activity Drops

Cancellations and Time-to-Foreclose increase year-over-year

06/15/2010

Discovery Bay, CA, June 15, 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 May 2010. Foreclosure filings, outcomes and inventories dropped across the board from April to May. Foreclosure filings also declined substantially year-over-year with Notice of Default filings down 43.3 percent and Notice of Trustee Sale filings down 35.8 percent. The only significant increases from the prior year were Cancellations, up 141.3 percent, Sales to 3rd Parties, typically investors, up 75.4 percent, and Time-to-Foreclose, up 30.5 percent from May 2009.

"Given the staggering number of delinquent home loans, foreclosure activity should be rising not falling as we found again this month" says Sean O'Toole, Founder and CEO of ForeclosureRadar.com. "We have recently witnessed a number of Cancellations where the owners have vacated the property and are clearly not working to modify their loan or complete a short sale. The most telling statistic that we present today may be that it takes lenders two months longer to foreclose then it did a year ago."

Foreclosure Filings

Notice of Default

Prior Month

Prior Year

-17.25%

-43.34%

Notice of Trustee Sale

Prior Month

Prior Year

-11.88%

-35.78%

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.

 

8-Dec

9-Jan

9-Feb

9-Mar

9-Apr

9-May

9-Jun

9-Jul

9-Aug

9-Sep

9-Oct

9-Nov

9-Dec

10-Jan

10-Feb

10-Mar

10-Apr

10-May

43974

40580

49799

58623

47337

42203

47093

47530

37063

38175

36534

30478

27200

25904

31309

33139

28897

23911

28449

24890

21147

34559

31556

43355

30711

40757

34224

33112

38558

28170

28475

27220

28501

34071

31594

27841


Foreclosure Outcomes

Back to Bank (REO)

Prior Month

Prior Year

-5.75%

-13.17%

Cancellations

Prior Month

Prior Year

-6.28%

141.27%

Sold to 3rd Party

Prior Month

Prior Year

-6.73%

75.44%

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.

 

8-Dec

9-Jan

9-Feb

9-Mar

9-Apr

9-May

9-Jun

9-Jul

9-Aug

9-Sep

9-Oct

9-Nov

9-Dec

10-Jan

10-Feb

10-Mar

10-Apr

10-May

15608

14533

16419

9201

12145

15864

19713

14632

14367

13155

16018

14165

12471

13943

11983

15365

14615

13775

6445

6717

6904

6352

6707

7162

8674

10818

10004

8660

8757

10487

13287

13859

13806

16520

18437

17280

833

893

1266

1094

1653

2305

2694

2691

3285

3411

3960

3683

2629

3707

3631

4031

4336

4044


Foreclosure Inventories

Preforeclosure

Prior Month

Prior Year

-5.67%

-17.30%

Scheduled for Sale

Prior Month

Prior Year

-3.97%

18.28%

Bank Owned (REO)

Prior Month

Prior Year

-2.26%

-18.37%

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.

 

8-Dec

9-Jan

9-Feb

9-Mar

9-Apr

9-May

9-Jun

9-Jul

9-Aug

9-Sep

9-Oct

9-Nov

9-Dec

10-Jan

10-Feb

10-Mar

10-Apr

10-May

112078

130550

159215

179412

185603

174243

186060

175283

171841

169860

154905

157288

146941

152322

140126

157768

152770

144105

67841

69374

64177

82390

92002

111824

113141

124874

131300

140382

149456

151573

147570

145977

145260

141669

137741

132269

141176

137331

135488

122901

112792

107762

106139

100206

98829

95479

93926

93595

89119

90551

89529

90065

89998

87964


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

Time to Foreclosure

Prior Month

Prior Year

-1.67%

30.51%

Time to Resell - Bank

Prior Month

Prior Year

2.02%

5.00%

Time to Resell - 3rd

Prior Month

Prior Year

0.62%

-10.93%

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.

 

8-Nov

8-Dec

9-Jan

9-Feb

9-Mar

9-Apr

9-May

9-Jun

9-Jul

9-Aug

9-Sep

9-Oct

9-Nov

9-Dec

10-Jan

10-Feb

10-Mar

10-Apr

165

192

198

176

171

180

173

187

185

191

195

198

222

229

224

225

239

235

206

218

223

231

234

240

244

238

228

220

219

220

224

224

224

232

247

252

187

193

186

214

196

183

168

146

147

141

131

133

141

149

150

153

162

163

 

Posted by

 

John Giggy, Realtor & Foreclosure Specialist
Keller Williams Realty


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Comments (2)

Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

They dropped in the Phoenix area also

Jul 23, 2010 01:22 PM
John Giggy
Brentwood Real Estate, Short Sales, Foreclosures, HAFA - Brentwood, CA

@Bill. It looks like a common trend. What do you think is contributing to this?

Thanks for sharing.

Jul 26, 2010 11:27 AM