Tuesday, August 11, 2009

Report: Record Number of California Foreclosures Scheduled For Sale

by Bill McBride on 8/11/2009 07:23:00 PM

From ForeclosureRadar: Record Number of Foreclosures Scheduled For Sale

[F]oreclosure 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 ...

Foreclosures scheduled for sale rose to 124,874, a 10.4 percent increase from the prior month, and a 93.3 percent increase year-over-year from July 2008. The year-over-year increase is significant given that foreclosure sales in July 2008 set a record that has not again been reached. The increase appears to be primarily due to the fact that lenders are willingly postponing foreclosure sales.
...
Political pressure, financial incentives and the postponement of sales awaiting the completion of loan modification trial periods are likely reasons for the delays. The vast majority of foreclosures, 72 percent, are postponing either due to lenders request, or mutual agreement between the lender and borrower.

The average California foreclosure has a total loan balance of $425,134 on a home that is now worth $236,739.
Whether or not there is a flood of foreclosures soon appears to depend on the loan mods. Notice that foreclosures remain pending during the loan mod trial period - so it is possible that the lenders will start cancelling many of these 'Notices of Trustee Sale' soon if the mods are successful.