Friday, November 13, 2009

So where the hell are they?

I guess the good news is they took 20% more homes back in October than they did in Sept. Not a Tsunai for sure, more like a knee slapper or a big ripple.

......

Foreclosure repossessions in California increased 22.24% from September to October, according to data released by ForeclosureRadar.com.

Last month’s foreclosures increased 20.95% from October 2008. October’s foreclosures were 42.56% below California’s peak month of July 2008, but since then, the inventory of real estate owned (REO) properties has grown 131.36% in California.

“While we continue to see a steady stream of properties entering foreclosure, relatively few are completing the process and being sold at auction despite the increase this month,” said Foreclosureradar.com CEO Sean O’Toole.

“The bigger picture is that more and more homeowners are finding themselves upside down in foreclosure limbo,” O’Toole added, “some hoping for a loan modification or short sale, while others are just waiting for a knock on the door.”

The number of foreclosures initiated in October remained level with September levels. But, the company said, this is due in large part to recent legislation enacted in California that will temporarily slow the foreclosure process.

Investors are continuing the purchase REO properties from lenders, and courthouse auctions are becoming more competitive, as noted by increases in sales volume and prices paid, Foreclosureradar.com said.

“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,” the firm said.

The discount investors paid for REO properties bought at auction decreased from 20.5% in September to 17.9% in October. The majority of properties foreclosed on in October were originally purchased with mortgage originated between January 2005 and December 2007.

6 comments:

Sigma said...

Thank the government for meddling. Let's keep irresponsible dead beats in home while we keep the responsible hard working non-speculators on the way side. This is how you bring America back to the great country it once was? I don't think so. Those futuristic impressions of society you see in movies like Blade Runner suddenly become more realistic. Moral hazard's a bitch, so watch out.

Tyrone said...

Great stuff posted over at JMineset...

Compare your State to California's Debacle

Time Lapse Unemployment: Counties of the USA
.

Health and Beauty Care said...

I agree with Sigma, this is a way out to get back to earlier position with prestige and proud.
Best CD Rates

Martin Burtin said...

Tyrone, I like those. You might get entertained by this one:
http://www.city-journal.org/2009/19_4_california.html

golfer_X said...

*****UPDATE*******

The scheduled Tsunami was held up at the gate by government intervention. It's now running 6 months late. I've heard the same thing now from 3 different sources this weekend. The "new" scheduled arrival time is Feb/March. Are you guys getting as tired of hearing about this as I am? "checks in the mail"....yea riiiiight!

Todd said...

I wish they'd get this show on the road. There are so many people out there (myself included) that are just chomping at the bit, wanting to buy a house. Unfortunately our gubment and the banks don't seem to want any part of it and would rather continue patching the holes in this leaky bubble until it's completely deflated.