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Sheriff Sale Homes and Foreclosures Dropped in California Metro Areas

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By : John Cutts    99 or more times read
Despite being ranked among the top five states with the highest foreclosed property rates last year, several metro areas of California recorded a decline in Sheriff Sale homes and foreclosure numbers in 2010. However, analysts are predicting that, this year, foreclosure levels will return to the same level seen during 2008 and 2009.

The number of properties offered at Ontario and San Bernardino foreclosure sales declined last year by 20% when compared with 2009 figures. Aside from the Ontario-San Bernardino area, the San Diego-Carlsbad-San Marcos and the Los Angeles-Long Beach-Santa Ana metro regions also posted lower foreclosure activities in 2010 when compared with year-ago levels. The San Diego area posted a drop of 17%, while the Los Angeles region recorded a 16% decline.

However, the drop in the number of California foreclosed homes for sale in these metropolitan areas was largely attributed to lenders' decision to delay the filing of foreclosure actions against troubled homeowners as they tried to cope with the flood of distressed properties entering their real estate books. The nationwide moratorium on foreclosure processing and sales initiated by several major lenders also played a role in lowering the number of foreclosures in these areas last year.

Analysts are predicting that the number of foreclosures and Sheriff Sale homes in 2011 will outpace 2010 figures, as lenders restart foreclosure cases that were put on hold during the fourth quarter of last year. Aside from foreclosure actions, analysts are also expecting the number of properties that will be seized by banks to rise further this year, even going as far as to say that 2011 is going to be a record period for repossessions and foreclosures.

Housing industry analysts are predicting repossessed and foreclosed homes for sale to increase by at least 20% this year, with values of houses also expected to decline further. Those who agree with this prediction cited the huge number of borrowers holding underwater mortgages as the primary reason for the bleak market outlook.

Although foreclosures and Sheriff Sale homes are projected to surge this year, a number of analysts stated that the residential property market will start to rebound slowly by 2012. They stated that the recovery of the market will be slow, but it will likely start come 2012.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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