Sacramento Real Estate Views

Foreclosure Report – July 2009 – Sacramento County 11th in Foreclosures Statewide

Foreclosure Statistics Mixed

ForeclosureRadar.com, the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for July 2009.

This report is very comprehensive with great information looking into the housing downturn here in California. ( If you’d like a copy with more details, contact me.  I’ll email it to you.)

I was surfing my ForeclosureRadar.com account yesterday and I was amazed how up to date the information is.  I found a property that was listed in the MLS as a short sale that had been sold at auction that day and was recorded as such on the site.

That should not be a surprise for the listing agent. That said, it most likely will be as it was still listed.  Crazy!

Report Highlights

Notices of Default Flat

New notices of default dropped by 1.5% in July.  That is considered flat as it isn’t much of a decrease in activity.  Year over year filings were up by 11.8%.

Notices of Trustee’s Sales Up

After dropping in June, notices of trustee sale increase by 31.6% in July over June.  These numbers were up .7% over July of ‘08.

The California Foreclosure Prevention Act is doing little if anything.  Notices of trustee sale hit it’s highest level yet in July, two weeks after the law took effect.

Foreclosure Auction Sales Dropped

After increasing for 3 months straight, foreclosure auctions dropped by 22.7% in July.  Year over year sales dropped as well just over 40%.  July of 2008 had the highest level of foreclosure sales on record.

Average bids opened 39% lower than the loan balance with 45% of sales discounted by 50% or more.  In most areas of our region, that’s just about market price.

Investor Purchases

Sales to third party investors also remained flat in July with over 84% of foreclosures being taken back by the lender.

Scheduled Sales

Foreclosures scheduled for sale rose in July by over 10% from June and 93% over July of 2008.  That is an enormous increase as the sales record set in July of 2008 has not been reached!

The increase appears to be caused by lenders who are willingly postponing foreclosure sales.

From Sean O’Toole of ForeclosureRadar.com

“Despite the failure of the California Foreclosure Prevention Act to slow Notice of Trustee Sale
filings it is clear that lenders and servicers are delaying foreclosure.  More homeowners are now sitting at the brink of foreclosure, just days away from the next scheduled auction date, then ever before, yet we simply aren’t seeing the wave of foreclosures many predicted.”

Question of the Day – Why?

Political pressure? Financial incentives?  Sale postponement waiting on loan modification?  Could be but no one really knows for sure.  What adds mystery to this is the volume of homes involved.

Time will tell.

Thanks for visiting!

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Tags: sacramento foreclosure statistics

This entry was posted on Thursday, August 13th, 2009 at 1:04 pm and is filed under Foreclosure Statistics. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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