California default filing notices and trustee sale notices fell in July 2010 from June and year-over-year. At the same time, foreclosure cancellations were down, and more foreclosure properties moved into REO status. Despite large volumes of mortgage delinquencies, experts say that a foreclosure wave has yet to occur because of lender and government intervention in delaying foreclosures. See the following article from HousingWire for more on this.
California mortgage defaults and foreclosure activity remained mixed in July, according to ForeclosureRadar, which tracks filings across the state.
Foreclosure filings and cancellations dropped in July after rising in June while foreclosure sales rose after dropping last month.
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Notices of default filings slipped 4.8% from June and 47% from the same month last year. Notices of trustee sale fell 18.9% from June and 30.5% from July 2009:
Foreclosure cancellations were down in July from recent highs while foreclosure properties moving into real estate owned (REO) status and sold to third parties increased slightly over last month:
“Despite a tsunami of mortgage delinquencies we continue to see no signs of a foreclosure wave,” said CEO Sean O’Toole. “Lenders and government intervention continue to delay foreclosures despite their continued failure to find a long term solution to unsustainable negative equity.”
The discount that foreclosure sales had relative to market value varied locally among third parties (typically investors) buying at trustee sale. Statewide, the average was a 21.6% discount off market value. Orange County saw the slimmest discount of 15.3% off market value. Kern and Fresno counties, on the other hand, offered the largest discounts of 29.3% and 29.9% respectively.
The time elapsed from notice of default to sale of the property at trustee sale slipped 3.4% from last month but is 20.6% longer than the same time last year.
This article has been republished from HousingWire. You can also view this article at HousingWire, a mortgage and real estate news site.