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Bank and Government Tax Foreclosures Diminished in Fourth Quarter

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By : John Cutts    99 or more times read
The number of bank foreclosures and government tax foreclosures declined in most areas of California during the October-December 2010 period when compared with the same 2009 quarter. However, analysts are predicting another increase this year as more borrowers defaulted and the unemployment level of the state continues to rise.

Bank foreclosures in Los Angeles and in majority of the southern California region posted declines in foreclosed property totals during the fourth quarter of last year. In the southern area, the number of households that received default notices totaled 37,592 across all six counties. This represents a drop of 16.6% when compared with the 2010 third quarter and a 19.7% fall compared with the 2009 fourth quarter.

However, housing industry analysts expect another rise in the number of California foreclosures this year as more people lose their jobs. This, analysts stated, will likely cause majority of them to default on their loan payments, and a big number of properties will again be seized by lenders in 2011.

Industry experts also attributed part of the decline in the October-December quarter to the moratorium imposed by several major lenders on the processing and selling of foreclosures, which resulted in considerable drops in the total number of bank and government tax foreclosures not just in California, but in most areas of the U.S. They stated that once these stalled cases are restarted, the state will probably post near-record levels of foreclosures again.

Properties repossessed by lenders also dropped during the quarter, representing a 22.5% fall compared with the 2010 third quarter and a decline of 34.4% compared with the 2009 fourth quarter. Meanwhile, foreclosed homes for sale sold at auctions totaled over 17,500 during the October-December 2010 period. Statewide foreclosure figures also recorded improvements in the final quarter of last year, with 69,799 default notices issued statewide to record a 16.2% drop from the third quarter and a decline of 17.5% compared with the 2009 fourth quarter.

For 2011, market analysts expect more properties to fall under bank and government tax foreclosures as majority of them believe that this year will be the peak of the housing industry crisis. Unless the job market is able to pull off some huge improvements before the year ends, foreclosures will remain high.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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