California Foreclosure Sales Drop by 39.1% in October 2008

ForeclosureRadar is reporting a 39.1 percent from the prior month, due to significant increases in cancellations and postponements. Under California law,scheduled foreclosure sales can be postponed for a period of up to one year, until they are either canceled or sold. Foreclosure cancellations in California increased by 78 percent in October, resulting in nearly 20 percent of foreclosure sales scheduled being called off.

Notice of Default (NOD) filings continue to be impacted by CA State Senate Bill 1137

• Notice of Default filings up 2.8% (16,810 filings in October)
• Notices of Trustee Sale increased by 32.9% (25,408 filings in October)
• Properties taken to sale at auction declined by 39.1% (14,042 sales)
• Lenders took back 94 percent of the properties taken to auction ($9.19 Billion loan value)
• Third party purchases declined 24% 

The increase in cancellations was led primarily by Countrywide which saw a 460% increase incancellations from the prior month, and a 48 percent decline in the number of properties they sold at auction.

The October declines in California foreclosures is not an indication that the foreclosure problem is over for the California housing market. Loan modifications being made by the banks do not address the overall issue of negative equity. Helping home owners reduce their monthly payments with a low interest loan is a stop-gap measure that is "banking" on the housing market to rebound enough in a couple of years for homeowners to refinance with a loan to value ratio that is in the plus column for the bank.

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Contact Paul for more information on how foreclosures are impacting East Bay home prices (925) 963-4246