Friday, November 13, 2009

California Foreclosures for October 2009

The October 2009 ForeclosureRadar foreclosure report for California was released today. NoD are down MoM and significantly up YoY. NTS are up MoM and YoY. The YoY comparisons were much easier because of the delay caused by SB 1137 last year. Both foreclosures and 3rd party sales are up MoM and YoY, with 3rd party sales seeing a significant increase. Cancellations aren't spiking at all, if loan mods are going through one would expect to see cancellations jump as evidence.

The above is the county level data for Ventura County and Los Angeles county. As always you can click to enlarge any graphic.
Investors are adept at finding the trustee sale bargains. I thought Sean O' Toole's words in the release about 3rd party sales matched what I had been seeing/blogging in the monthly trustee sale charts and will quote it here (emphasis mine):

The number of foreclosures sold at auction to 3rd party bidders, typically investors, continues to grow significantly. Given that this increase in sales to 3rd parties happened in conjunction with a decline in the average discount to market value received by these investors, it is clear that the sales at the court house steps are becoming increasingly competitive. Many auction investors are gaining confidence that they can make money reselling homes purchased on the court house steps, given the limited supply of homes available on the MLS and continued demand stimulus in the form of tax credits and low interest rates.
Investors are having a field day with the current enviroment. As long as REO's are being metered out and supply is being choked off from the market they will continue to do so.

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