Saturday, July 07, 2007

Lender-owned Homes on the Rise

by Bill McBride on 7/07/2007 12:46:00 AM

From the San Jose Mercury News: Once rare in valley, lender-owned homes on the rise

REOs, once rare in Silicon Valley, may soon contribute to lower home prices in some neighborhoods.
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In May, $2.8 billion worth of California real estate went up for sale in foreclosure auctions, according to ForeclosureRadar.com, a Discovery Bay company that sells foreclosure information to subscribers. Of that amount, about $2.6 billion worth failed to find buyers, and so became bank-owned. The figures represent the total value of the outstanding loans that went up for auction.

Those figures are way up from early this year. In January, for example, $1.49 billion worth of property was auctioned statewide, and $1.32 billion went back to banks. January is typically a busy month because trustees usually refrain from foreclosing during the December holidays.
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An estimated 8 percent of homes for sale - or about 450 houses and condos - in Santa Clara County as of June 30 were "distressed" in some way - either being sold in a "short sale," or in foreclosure or as REOs ...