A report by U.S. bank regulators showed that they find pre-foreclosure homes to have risen in numbers in various areas of the U.S. during the 2010 third quarter. The increase is expected to continue until the first few months of 2011 as the number of delinquent borrowers also increases in the country.
In California, San Jose foreclosures and foreclosed property totals in other metro areas of the state jumped during the July-September 2010 period. Statewide, foreclosed properties numbered 382,000 during the quarter, representing a 31.2% surge compared with the previous quarter and a 3.7% increase from the same 2009 period.
The state also recorded the highest number of applications for mortgage modifications during the quarter in focus. Owners of California foreclosures who sought mortgage modification totaled 50,407 for the period, with over 17,000 applications filed under the Home Affordable Modification initiative of the federal government. Meanwhile, almost 33,000 borrowers in the state sought modification under other programs.
California accounted for 21.6% of all modification applications in the U.S. for the July-September period, giving the area the number one spot among all 50 states in terms of the number of loan modification applicants. Buyers also find pre-foreclosure homes and foreclosed properties increasing further in the state during the quarter.
Nationwide, completed foreclosures totaled 187,000 for July-September, representing a 14.7% increase compared with the April-June 2010 quarter. Compared with the 2009 third quarter, the number of foreclosed properties nationwide rose by 57.5%. Along with a rise in foreclosed property totals, the number of borrowers who are behind in their loan payments for a period of 30 to 59 days also increased, with figures rising by 4.3% compared with the 2010 second quarter.
Despite a rise in foreclosure and in the number of delinquent borrowers, some positive statistics did emerge during the period in focus. For one, nationwide delinquency rates among borrowers behind in payments for at least two months declined by 6.4% compared with the previous quarter.
For another, home retention activities also increased during the period, with mortgage servicers reporting that more than 470,000 retention actions were implemented. Analysts are hoping that this will find pre-foreclosure homes and foreclosed properties declining in the coming months, particularly when national foreclosed property totals have already reached 1.2 million in the third quarter.
For over 10 years, John Evan Miller has provided exceptional information on the foreclosure market.
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