California foreclosure sales jumped 22.5 percent in
July, compared to June, according to ForeclosureRadar, which tracks home
foreclosures in the state. Sales at foreclosure auction rose by more than $2
billion in combined loan value to $12.5 billion. According to the firm, this
represents more than 1,300 properties being taken to auction each business day,
up from 415 per day one year ago. In the meantime, notices of default declined
for the third straight month. The total number of properties still actively
scheduled for auction increased to 64,598 at the end of July, up from 59,973 at
the end of June and 53,793 at the end of May. This indicates further increases
in foreclosure sales are still likely near term despite the declining number of
defaults.In fact, 91 percent of the
decline in notices of default can be attributed to one company—Countrywide
Financial, according to Sean O’Toole, founder of ForeclosureRadar. He said he
believes this probably due to “the challenges of integrating two companies the
size of Countrywide and Bank of America than it is a fundamental shift in
foreclosure activity.”
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Home Sales Pick Up in San Diego
and State
Home sales in San DiegoCounty rose nearly seven percent in
June, according to California Association of Realtors’ most recent
figures.This also is some 20 percent
less than the sales figure from June 2007. Statewide, home sales increased by
17.5 percent in June compared to the same period a year ago while the median
price of an existing home fell nearly 38 percent.
“Statewide home
sales remained above the 400,000 level for the second month in a row and up
nearly 18 percent from a year ago,” said C.A.R. President William E. Brown.
“Following a 30-month string of year-to-year percentage decreases that begin in
October 2005, sales last month also posted their third consecutive year-to-year
gain.” He noted that sales were driven in part by deeply discounted distressed
sales in many areas of the state.
California Enacts Foreclosure Relief
Bill
The California legislature
has enacted a foreclosure reform law to address the adverse effects of high
foreclosure rates in the state. Effective September 8, the new law requires
lenders to contact homeowners to explore options for avoiding foreclosure at
least 30 days before filing a notice of default.It also requires owners acquiring property
through foreclosure to maintain the exterior of vacant residential properties.
This became effective July 8. Property owners can be fined up to $1,000 a day
for violations such as failing to take action against squatters or trespassers,
failing to act to prevent mosquitoes from breeding in standing water, or other
public nuisances. Another portion of the legislation, which also went into
effect July 8, requires a tenant or subtenant of a rental housing unit that has
been sold through foreclosure to be given a 60-day notice to quit, not just 30
days. However, a borrower who remains on the property after foreclosure may be
served a three-day notice to terminate. These measures are to remain in effect
until January 1, 2013. The full text of
Senate Bill 1137 (Perata) may be found at www.leginfo.ca.gov.
