Sales Of Foreclosed Homes in California Pick Up Speed
California continues to reel under the foreclosure tornado. More foreclosed homes are being sold and the picture remains grim. The weather is showing no signs of improvement. A report has been issued about 9,477 foreclosed homes by one of the most reliable prime online data collecting sources focusing on August 2007. The total value of the loan was $3.86 billion. Auction sales picked up speed state wise by 10.4% as compared to the total sales in July of this same year.
4,199 of these foreclosed homes comprise of 44.35% of the total sales. The latter have been described as ‘spectacular owned’ units. Their total value is $1.71 billion. These spectacular owned units are generally not occupied by the owner but had been bought for investment and speculating purposes.
According to analysts it is these types of investment foreclosed homes that cause the greatest damage to the sub-prime mortgage market. The speculators have practically nothing to lose when they move out. These investments consist of 44.3% of the total sub-prime investments. The owners are just walking away with a casual shrug. They lose neither hearth and home nor memories. Even those with good credit history were not averse to this rampant speculation. This is the main reason for the foreclosure debacle.
The latest report on the August hones in on some important pointers. 90.3% of the total foreclosure sales in California belong to either homes purchased or refinanced during the two years of 2005 and 2006. Approximately 95% (9,015) of the units sold in the auctions reverted to only the lenders. The total value amounted to $3.7 billion.
During August the default notices to 16,563 foreclosed homes, shot up by 16.3%. In the foreclosure process this is the first step. But trustee sale notices were issued to 12,896 foreclosed homes – a decrease of 2.25%. The latter notice predetermines the date and time of the auction sale. The foreclosure process starts with delinquency when the borrower defaults for more than three months. Then notices are issued and these are followed by sales and repossession. It consumes time and money.
So far the data that has been released is comprehensive and includes complete figures of all the counties in California. Riverside County is the highest offender in foreclosures during August. San Bernardino County notched up one step to rank 8th by increasing 18.1% in the total number of foreclosure sales during August.
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