California Foreclosure Report

Foreclosure Activity Back Up as Stalemate Continues

Despite apparent declines daily foreclosure activity is up on all fronts

02/16/2010 - With hundreds of thousands of California homeowners in foreclosure a stalemate continues as only a small percentage reach the end of the process through cancellation or sale and the time to foreclose increases. Once again the raw numbers fail to tell the story on foreclosure activity due to the difference in number of business days in January (19) vs. December (22). On a daily average basis foreclosure activity increased on all fronts.

Dramatic Declines in Foreclosure Activity

Banks cancel more foreclosures than they sell for first time

01/15/2010 - Foreclosure activity dropped dramatically in December, especially when looked at on a daily average basis. For example while Notices of Default dropped 17.5 percent in aggregate, they actually dropped 32.5 percent on a daily average basis due to the fact that December had 22 days on which documents were recorded, versus 18 in November.

Foreclosure Cancellations Jump 40 Percent

November Foreclosure Sales and Filings Impacted by Holidays

12/15/2009 - Despite apparent headline month-over-month declines in foreclosure activity, the real story requires looking at changes in the average daily activity. November had only 18 days on which filings could be recorded or trustee sales held because of fewer days in the month, Veterans Day and the Thanksgiving Holiday, while October had 22 recording days, and 21 trustee sale days.

Foreclosure Sales Jump by 21 Percent

Despite increase sales are still well below record levels

11/12/2009 - After 3 months of consecutive declines the number of foreclosure sales taken back by banks rose by 22.24 percent from September and 20.95 percent from October 2008. Despite these dramatic increases, the number of foreclosures taken back by banks remains 42.56 percent below the peak reached in July 2008, from which time the inventory of scheduled foreclosures has grown by 131.36 percent.

No Shadow Inventory of Bank Owned Homes

Foreclosure Investors Still Finding Discounts at Trustee Sale

10/13/2009 - ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for September 2009. This month's report features not only a new look, but an important new statistic - Bank Owned (REO) Inventory. By looking at the number of foreclosures the banks have taken back and subtracting those that have since resold, we are able to show the number of foreclosures the banks have held as inventory over time.

California Foreclosure Filings Drop

Foreclosures "HAMPered" by Making Home Affordable Program

09/17/2009 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report for August 2009. Foreclosure filings dropped both month-over-month and year-over-year, while the inventory of properties scheduled for foreclosure sale continued to grow, and foreclosure sales were flat.

Record Number of Foreclosures Scheduled for Sale

California Foreclosure Prevention Act fails to slow filings

08/20/2009 - ForeclosureRadar, the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report for July 2009. For the third consecutive month, foreclosure sales jumped significantly as lenders come off the moratorium. Once again, foreclosure stats were mixed, with Notice of Default filings flat, Notice of Trustee Sale filings rising by 31.6 percent and foreclosure sales dropping 22.7 percent. The number of properties scheduled for foreclosure sale - new Notices of Trustee Sale minus those sales that have cancelled or sold - rose to a record level of 124,874, nearly double the levels reached during the foreclosure peak last year.

Foreclosure Sales Increase 24.7 Percent

California Foreclosure Prevention Act has unexpected impact on June filings

07/14/2009 - For the third consecutive month, foreclosure sales jumped significantly as lenders come off the moratorium. Foreclosure sales increased by 24.7 percent following a 31.9 percent increase in May, and a 35 percent April increase. Notices of Trustee Sale dropped by an unexpected 28.7 percent, with the timing of the drop indicating that it was in response to the California Foreclosure Prevention Act. This law was widely believed to have little or no impact on foreclosure filings, as it exempted the majority of large lenders that operate in the state.

Foreclosure Sales Steadily Climbing

Despite Increases, Lenders Voluntarily Delaying 73 Percent of Scheduled Foreclosures

06/16/2009 - Foreclosures sales jumped 31.9 percent in May, following a 35 percent increase the prior month. Notices of Trustee Sale, which set the auction date and time, also rose a significant 42 percent from April, indicating that foreclosure sales are likely to continue to rise in the weeks and months ahead. Despite these increases, and a record number of foreclosures scheduled for auction, lenders continue to voluntarily postpone the majority of foreclosure sales.

Investors Purchase Record Number of Foreclosures at Auction

April Foreclosure Notices Drop from March Record Levels

05/12/2009 - In a reversal from the prior month, foreclosure notices dropped while foreclosure sales rose. Sales at auction rose by 35 percent overall and a record number of those properties were purchased by third parties at an average 28 percent discount from estimated market value. Notices of Default, the first step in the foreclosure process, dropped by 18.2 percent from the record level set the prior month. Notices of Trustee sale, which set the auction date and time, also dropped by 8.5 percent from the prior month.

Foreclosure Notices Soar, Foreclosure Sales Drop

Government Intervention Continues to Play Havoc in Foreclosure Market

04/14/2009 - Notices of Default, the first step in the foreclosure process, reached a record level – nearly 26 percent higher than the previous historic peak in April 2008. Notices of Trustee sale, which set the auction date and time, rose 82.3 percent from the prior month, though not yet reaching the prior record level set in July 2008. While foreclosure notices rose dramatically, sales at auction decreased 41.4 percent, to reach the lowest levels seen since the third quarter of 2007. While there is a lag between foreclosure filings and foreclosure sales, these dramatic differences are likely best explained by the unintended consequences of government intervention in the foreclosure process.

Average Negative Equity at Foreclosure Exceeds $200,000

Notices of Default and Properties Sold at Auction Continue to Rise in February

03/12/2009 - The average difference between current market value and outstanding loan amount exceeded $200,000 for properties sold at foreclosure auction in February. This represents a 189 percent increase in negative equity when compared to properties foreclosed on a year earlier. Notices of Default have increased 21.3 percent from January and have nearly returned to the peak levels reached in April 2008, despite the President's Day holiday and February being a short month. Properties sold at foreclosure auction (trustee sales), rose 11.9 percent from January to 17,131.