Discovery Bay, CA, June 15, 2010 - PropertyRadar (www.propertyradar.com), the only website that tracks every California foreclosure and provides daily auction updates, issued its monthly California Foreclosure Report for May 2010. Foreclosure filings, outcomes, and inventories dropped across the board from April to May. Foreclosure filings also declined substantially year-over-year with Notice of Default filings down 43.3 percent and Notice of Trustee Sale filings down 35.8 percent. The only significant increases from the prior year were Cancellations, up 141.3 percent, Sales to 3rd Parties, typically investors, up 75.4 percent, and Time-to-Foreclose, up 30.5 percent from May 2009."Given the staggering number of delinquent home loans, foreclosure activity should be rising not falling as we found again this month" says Sean O'Toole, Founder, and CEO of PropertyRadar.com. "We have recently witnessed a number of Cancellations where the owners have vacated the property and are clearly not working to modify their loan or complete a short sale. The most telling statistic that we present today may be that it takes lenders two months longer to foreclose than it did a year ago."
Prior MonthPrior Year-17.25%-43.34%
Prior MonthPrior Year-11.88%-35.78%
Notice of Default filings is the first step in the foreclosure process. Notice of Trustee Sale filings set the date and time of auction and serve as the homeowner's final notice before the sale.
8-Dec9-Jan9-Feb9-Mar9-Apr9-May9-Jun9-Jul9-Aug9-Sep9-Oct9-Nov9-Dec10-Jan10-Feb10-Mar10-Apr10-May439744058049799586234733742203470934753037063381753653430478272002590431309331392889723911284492489021147345593155643355307114075734224331123855828170284752722028501340713159427841
Prior MonthPrior Year-5.75%-13.17%
Prior MonthPrior Year-6.28%141.27%
Prior MonthPrior Year-6.73%75.44%
After the filing of a Notice of Trustee Sale, there are only three possible outcomes. First, the sale can be Cancelled for reasons that include a successful loan modification or short sale, a filing error, or a legal requirement to re-file the notice after extended postponements. Alternatively, if the property is taken to sale, the Bank will place the opening bid. If a 3rd party, typically an investor, bids more than the bank's opening bid, the property will be Sold to 3rd Party; if not, it will go Back to Bank and become part of that bank's REO inventory.
Prior MonthPrior Year-5.67%-17.30%
Prior MonthPrior Year-3.97%18.28%
Prior MonthPrior Year-2.26%-18.37%
Preforeclosure inventory is an estimate of the number of properties that have had a Notice of Default filed against the property but have not yet been Scheduled for Sale. The Scheduled for Sale inventory indicates those properties that have had a Notice of Trustee Sale filed, but have not yet been sold or had the sale canceled. The Bank Owned (REO) inventory indicates the number of properties that have been sold Back to the Bank at the trustee sale, and which the bank has not yet resold to another party.
Foreclosure discounting compares the winning Bid Amount of properties sold at a trustee sale to both the outstanding Loan Amount, and the current Market Value. Banks place an opening bid for each property, and if a 3rd Party does not make a higher bid the property will be sold Back to Bank (REO) for the opening bid amount. While 3rd Party bids are higher than the opening bid, properties Sold to 3rd Parties typically have lower opening bids to start with and therefore deeper discounts to both Loan Amount and Market Value.
<tr >Prior MonthPrior Year
-1.67%30.51%
Prior MonthPrior Year2.02%5.00%
Prior MonthPrior Year0.62%-10.93%Time to Foreclose is the total time from the filing of the Notice of Default to the sale of the property at the trustee sale and reflects those properties sold in the month indicated. Time to Resell reflects how long it takes banks and 3rd parties to resell the properties they take back or purchase at trustee sale.
Notice of DefaultNotice of Trustee SaleBack to Bank (REO)Sold to 3rd Party