Posts (RSS)California Still the Leader in Foreclosed Home Listings
California still leads other states in foreclosed home listings, based on foreclosure data released by California-based real estate research firm RealtyTrac.
In May, California had 92,249 housing units hit with foreclosure filings, the highest figure among state foreclosures. The number represented an almost 23 percent increase from filings in May 2008.
The number of bank repo homes declined by 1 percent compared to April while defaults dropped by 18 percent. However, the number of auctions scheduled to sell properties in foreclosed home listings increased by 18 percent.
Marty Rodriguez, founder of Glendora-based broker Century 21 Marty Rodriguez, said she and her fellow brokers are still waiting for bank owned foreclosed properties that were not released before the foreclosure moratoriums. She said brokers received insider information that there are more bank owned homes still to enter the market.
Rodriguez said many homeowners who applied for loan modification during the foreclosure moratoriums failed to qualify, causing more properties to be added to foreclosed home listings.
Rodriguez also added that she has been receiving multiple offers on bank owned real estate owned properties because banks have priced them aggressively to get more offers. She said many of the offers have been exceeding the asking price because of the competition.
The over 92,000 foreclosure filings in California as reported by RealtyTrac included all filings in different stages of foreclosure: default, auction and real estate owned. The notice of default is given when the initial foreclosure is filed. The notice of auction is given when a trustee or foreclosure sale is scheduled. Properties are considered REO when they are foreclosed and repurchased by the bank.
The second state with the biggest number of foreclosure notices is Florida. Despite a decline in default notices, foreclosure auctions and bank owned foreclosed home listings compared to April, foreclosure filings increased by 50 percent to 58,931 units compared to filings in May 2008.
With 17,157 in foreclosure filings, Nevada ranked third among the states, according to the RealtyTrac report.
Rodriguez related that first-time buyers have been joining the frenzy in looking for bargain-priced units in foreclosed home listings. They are trying to beat the deadline for the $8,000 tax credit which is offered only up to the end of November.
With first-time buyers and investors competing in many markets, the asking prices for some distressed properties in foreclosed home listings go up instead of going down. Rodriguez cited a Corona home which was offered at $507,000 and which was finally sold at $590,000, still a bargain when the original price of $860,000 is considered.