Increasing Foreclosure Sales in California

Posted on September 18th, 2007 by hinson

According to the recent report issued by ForeclosureRadar, a total of 9,477 properties underwent the proceedings of foreclosure. The loan value of these houses is worth $3.86 billion. The auction sale in the month of August recorded a rise of 10.4% as compared to the month of July. The total valuation of the properties owned by speculators is $1.71 billion. There are nearly 4199 speculator properties that account for 44.35% of the total volume of foreclosure sales.

There are large numbers of homebuyers who buy properties primarily for investment purpose. The subprime market is suffering the most due to the presence of the investors. The borrowers who bought homes for investment purpose don’t have anything to lose once they are out of their investment property. The properties owned by the investors constitute 44.3% of the total investment property sales.

The real estate crisis that is prevailing over the entire nation has wreaked havoc all over. The speculators are primarily responsible for that. Foreclosure Radar report has brought forth certain facts. About 90.3% of the foreclosed properties in California were either bought in the year 2005 or 2006. Near about 95 percent of the properties going through the foreclosure proceedings went back to the money lenders itself. Approximately 9,015 properties went to the sub prime lender. The total loan value of all these houses was worth $3.7 billions.

The notice of delinquency issued in August went up by 16.3 percent. Nearly 16,563 notices of default were issued. The issue of notice is the first step of the foreclosure process. The rate of issue has indeed dropped down by 2.25 percent. And near about 12,896 notices were issued in August. The notice of trustee sale specifies the timings of foreclosure thereby clearly indicating the date and the time when foreclosure proceedings will take place.

The report of ForeclosureRadar is based on the figures obtained from all the counties of California. The statistics indicate that the county of Riverside had the maximum foreclosure activities in the month of August. San Bernardino County was at the eighth position in the list of foreclosure sales with a rise of 18.1% from the past months. The rate at which foreclosure sales are taking place is increasing at a very rapid pace.

Via