The number of homes repossessed by lenders among tenant-occupied properties in Santa Cruz County, California has been rising, based on data from Santa Cruz Record.
According to local brokers, the number of foreclosures among homes being rented out has been increasing because these types of properties are exempted from the loan modification initiative of the Obama administration.
In 2009, a total of 727 houses in the county were sold at public foreclosure auctions, a decline of 20 percent from 2008, but the pace of delinquency surged by 17 percent to 2,079 default notices.
In February this year, delinquency notices decreased from 391 notices in February last year to 377 this year, but completed foreclosures increased from 210 units to 291 units and the number of sold foreclosed homes rose from 138 units to 150 units.
Although the pace of short sales is slightly rising, the number is still low compared to foreclosure sales because of the difficulty in carrying out pre-foreclosure sales. Nevertheless, the recently enhanced short sale program of the Obama administration could increase short sales in Santa Cruz.
Throughout the county, the percentage of sales of homes repossessed and distressed properties was still high at 48 percent. But home prices have been stabilizing, posting increases, although still below the peak prices in 2008.
In February, the sales price median for single-family houses in Santa Cruz County was $500,000, a significant increase from the $380,000 median in February 2009, but still far below the peak price of $682,500 in 2008. Low prices are also still prevalent in foreclosure-clobbered communities like San Lorenzo Valley and Watsonville.
A buyer in Scotts Valley got a deal when he found a good home priced at $185,000. The price was a bargain considering he was previously bent on purchasing a unit on Bethany Drive which was priced at $200,000, but needed $30,000 in repairs.
Committed buyers can continue looking for bargain-priced properties in the area, as foreclosures continue to push down the prices of nearby homes, whether newly built or nondistressed properties.
A house in Santa Cruz priced in 2006 at $778,000 was recently sold for $599,000. A home in Aptos sold for only $85,000 recently, overwhelmingly down from its 2006 price of $335,000.
Indeed, the downward price pressure of homes repossessed by lenders is still heavy as another Watsonville home bought for $560,000 in 2006 was recently sold for only $75,000.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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