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Drop in Foreclosures and Federal Houses for Sale Expected for 2nd Half

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By : John Cutts    99 or more times read
The number of bank foreclosures, government foreclosures and federal houses for sale will likely decline in the coming second half of 2010 in California as total default notices issued dropped during the second quarter in most areas of the state. The 2010 second quarter marks the fifth quarter in succession that default notices have dropped in the state.

Foreclosure rates in the state have been some of the highest in the whole country, with almost all areas affected by the housing crisis, including Long Beach foreclosure investing. Although foreclosure numbers in the region remain high compared with other states, these numbers have been declining for the past four quarters.

The total number of California foreclosure properties is expected to decline further before the year ends as the April-June period recorded a considerable drop in default notices which totaled 70,051, according to statistics presented by MDA DataQuick. This represents a 13.6% decline compared with the first quarter of 2010 and a 43.8% decline when compared with the 2009 second quarter.

The recently concluded quarter records the lowest number of default notices since the 2007 second quarter. The first quarter of 2009 was the start of the foreclosure peak, when federal houses for sale and bank foreclosure numbers were at their highest and when notices of default reached a total of over 135,000.

According to real estate experts, sale of foreclosure properties by motivated sellers through short sales and pre foreclosures, along with lenders who are willing to negotiate alternatives to foreclosures, contributed to the decline in the total number of filings during the quarter. They also cited public policies and prices coming up from a bottomed out market as factors that led to more homeowners willing to sell before foreclosure is finalized.

Although mortgage loan defaults have moved from lower cost markets to more expensive communities in California, this trend seems to be leveling off according to real estate market analysts. The percentage of mortgage defaults in the whole state accounted for by areas with the lowest priced federal houses for sale and other dwellings has also declined to 40.1% in the second quarter from the first quarter's 40.9% and from the 44.9% recorded in the second quarter of 2009.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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