IE foreclosure sales up, but auctions struggling

   Their owners couldn’t afford them.
   The lenders don’t want ‘em.
   Even bargain hunters can’t justify fighting over them right now.
   Banks are struggling to unload foreclosed housing inventory through auctions at desired prices, according to a report released on Wednesday by Discovery Bay-based ForeclosureRadar, a foreclosure analysis company.
   What’s more interesting: San Bernardino and Riverside counties collectively saw foreclosure sales increase by 22 percent in May, with Riverside County experiencing the highest level of foreclosures per capita.
   The numbers vary month to month, but San Bernardino County’s monthly rank on the foreclosure totem pole moved from No. 9 to No. 5, the report said. Riverside County moved from No. 3 to No. 1.
   The ranking is based on the number of default notices, trustee sales and auctions.
   In California, “Sales at auctions increased 11.8 percent to a total of 25,523 properties,” the report states. “Of those, 24,831 received no bid higher than the lenders opening bid and became lender-owned (REO). The combined loan value at the time of foreclosure on this new REO inventory exceeded $10 billion for the first time.”

- Matt Wrye, staff writer, matthew.wrye@inlandnewspapers.com, or 909-386-3871

Here is ForeclosureRadar’s May report:

 

$10 Billion in Loans go “back to the bene”

Investor activity increases at the courthouse steps

Discovery Bay, CA, June 11, 2008 – ForeclosureRadar (www.foreclosureradar.com), the only website that tracks every California foreclosure with daily auction updates, today issued its California Foreclosure Report. Lenders, technically called the beneficiary or “bene” by foreclosure auctioneers, took back $10.4 Billion in California loans as a result of foreclosure activity in May. Despite this record the company’s report noted a significant increase in investor purchases at auction.

High-level findings include:

  • Notices of Default, the first step in California’s foreclosure process, were down 2.5% for the month totaling 43,011 new filings. Daily average filings were actually up 2.4% to 2,009 filings per day.

  • Notices of Trustee Sale can be issued 3 months following a Notice of Default and set the date, time and location of the foreclosure auction, increased 15.6 percent in May to a record 34,564 new filings.

  • Sales at auction increased 11.8% to a total of 25,523 properties. Of those 24,831 received no bid higher than the lenders opening bid and became lender owned (REO). The combined loan value at the time of foreclosure on this new REO inventory exceeded $10 Billion for the first time.

  • Despite more than 97% of foreclosed properties being returned to the lender, there was a notable 34.6% increase in properties purchased by third parties. We believe this third party bidding is due to a renewed investor interest as the lenders continue to increase discounts at auction.

“The increase in investor purchases at foreclosure auction is a welcome change.” said Sean O’Toole, founder of ForeclosureRadar. “For too long lenders were unrealistic about opening bids at auction. They finally seem to realize the magnitude of the problem and are beginning to discount accordingly.”

Lenders discounted 86 percent of all foreclosures taken to sale with an average discount of 28 percent. The Northern California Counties of Sacramento, San Joaquin, Stanislaus and Merced saw the largest average opening bid discounts ranging from 31 to 37 percent. In Southern California, Riverside saw the largest discounts, with an average of 27.5 percent, followed by San Bernardino at 25 percent.

At the county level we saw noticeable increases in foreclosure sales in both Riverside, which saw the highest level of foreclosures per capita in May, and San Bernardino which saw foreclosure sales increase by 22%. By total loan value, Southern California counties filled out the top five with Los Angeles having $1.83 Billion in loans foreclosed, Riverside $1.43B, San Bernardino $900k, San Diego $883K, and Orange at $695k. This is primarily due to the size of these counties – for example Los Angeles always has the highest foreclosure counts, yet ranks 33rd in our report when normalized for population.

 

ForeclosureRadar May Report by County:

Rank

Change in Rank

County

NDF

NTS

Sales

Population
Per Sale

% Change Apr 2008

% Change May 2007

1

2

Riverside

5385

4447

3564

548

9%

269%

2

-1

Merced

564

509

431

573

-2%

307%

3

-1

San Joaquin

1498

1426

1102

605

-5%

232%

4

1

Stanislaus

1271

1080

817

630

4%

304%

5

4

San Bernardino

4106

3359

2648

752

22%

322%

6

7

San Benito

49

54

76

758

41%

375%

7

-1

Sacramento

2620

2237

1730

801

5%

169%

8

0

Yuba

143

90

86

812

6%

146%

9

6

Madera

206

148

170

849

34%

448%

10

-3

Solano

826

612

481

879

-2%

285%

11

3

Contra Costa

1723

1356

1141

902

20%

310%

12

-1

Kern

1266

1037

795

981

2%

235%

13

5

Sutter

141

99

76

1,203

21%

204%

14

5

Placer

432

370

248

1,276

18%

188%

15

2

Monterey

613

449

307

1,384

2%

339%

16

12

Sonoma

488

428

328

1,463

39%

438%

17

6

San Diego

3362

2801

1977

1,551

17%

191%

18

7

Fresno

957

738

561

1,603

21%

257%

19

-9

Lake

ND

ND

40

1,603

-39%

186%

20

-8

Calaveras

ND

ND

26

1,758

-40%

2500%

21

1

Tehama

ND

ND

33

1,865

-6%

106%

22

4

Ventura

784

635

437

1,870

5%

267%

23

6

Amador

28

29

20

1,907

11%

82%

24

3

El Dorado

185

141

91

1,936

3%

107%

25

-4

Yolo

200

136

97

1,962

-9%

116%

26

6

Alameda

1457

1080

754

1,991

15%

259%

27

-7

Imperial

229

193

83

2,007

-22%

137%

28

7

Napa

116

85

65

2,068

41%

282%

29

-13

Colusa

ND

ND

10

2,151

-44%

900%

30

-6

Tulare

415

275

193

2,179

-14%

245%

31

-1

Santa Barbara

311

256

188

2,243

9%

300%

32

1

Orange

2528

2046

1332

2,307

18%

302%

33

1

Los Angeles

8209

6416

4274

2,397

15%

283%

34

6

Santa Clara

1291

920

674

2,631

35%

536%

35

3

Shasta

107

101

65

2,792

14%

81%

36

6

Butte

95

54

75

2,896

29%

108%

37

2

Santa Cruz

183

127

85

3,086

5%

673%

38

5

Kings

93

53

46

3,212

18%

360%

39

-3

Nevada

85

58

30

3,336

-9%

100%

40

-3

San Luis Obispo

190

118

74

3,557

-14%

196%

41

4

Tuolumne

45

22

16

3,639

23%

433%

42

9

Mendocino

36

28

18

5,025

29%

260%

43

6

Marin

98

80

50

5,067

6%

400%

44

-13

Mariposa

ND

ND

3

6,072

-57%

ND

45

5

San Mateo

417

318

119

6,085

1%

240%

46

-2

Siskiyou

18

18

7

6,592

-36%

75%

47

5

Trinity

ND

ND

2

7,012

-33%

100%

48

7

Del Norte

ND

ND

3

9,732

50%

200%

49

-2

Modoc

ND

ND

1

9,836

-50%

ND

50

-9

Plumas

12

4

2

10,722

-67%

100%

51

-5

Mono

2

2

1

13,597

-86%

-50%

52

2

San Francisco

171

110

54

14,790

-14%

200%

53

0

Humboldt

39

20

8

16,566

-27%

33%

54

-6

Lassen

ND

ND

2

17,726

-75%

-50%

Sign up to receive the California Foreclosure Report

California Foreclosure Report Methodology

Rankings are based on population per foreclosure sale. NOD indicates the number of Notices of Default that were filed at the county, and NTS indicates filed Notices of Trustee Sale. Sales indicates the number of properties sold at foreclosure auction. Percentage changes are based on monthly Sales. The data presented by ForeclosureRadar is based on county records and individual sales results from daily foreclosure auctions throughout the state – not estimates or projections.

About ForeclosureRadar.com

ForeclosureRadar is the only web site that tracks every foreclosure in California with daily updates on all foreclosure auctions. ForeclosureRadar features unprecedented tools to search, manage, track and analyze preforeclosure, foreclosure auction, short sale and bank owned real estate. The web site was launched in May 2007 by Sean O’Toole, who spent 15 years building and launching software companies before entering the foreclosure business in 2002 where he has successfully bought and sold more than 150 foreclosure properties. ForeclosureRadar is an indispensable resource for real estate agents, brokers, investors, lenders, mortgage brokers, attorneys and other real estate professionals specializing in the California real estate market.

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