Home and Condo Foreclosures in California Highest Again- By: John Cutts
Home and condo foreclosures in California again accounted for the biggest percentage of all filings in the country in May. The 72,030 homes in California that got hit with filings made up 22.3 percent of the 322,920 filings posted nationwide.
Those looking to buy foreclosures for sale can find plenty in California as the state also posted 15,946 units of repossessed units, also the highest among states in May. California, however, was behind Nevada, Arizona and Florida in rate of foreclosures by state, with its rate of one in 186.
While the foreclosure trend nationwide continued its declining trend in May, California showed a resurgence. While it posted a stunning 25.2-percent month-over-month decline in April, it posted a month-over-month increase of 3.3 percent in May. Total foreclosure postings, however, continued to be lower than that of May 2009 by 22 percent.
Meanwhile, to protect former owners of home and condo foreclosures in California from further financial troubles after foreclosure, the state Senate finally passed a bill that would prohibit mortgage lenders from collecting the difference between the home loan amount and sales proceeds of the foreclosed home.
Previously, the Senate rejected the bill because the banking industry successfully argued that there were plenty of borrowers who refinanced many times their loans to obtain cash to buy boats, bigger cars and other luxury items. The Senate relented only when a compromise bill was crafted. The final bill provided for deficiency forgiveness only for original loans and for refinanced loans without cash obtained. For cash-back loan refinancing, the protection is limited only to the original loan.
Housing advocates argued that distressed borrowers should not bear more hardship for the decline of property values, as this already partly caused the loss of their homes.
With the nearly 16,000 units that entered California foreclosure listings in May, it is expected that the sales of home and condo foreclosures will again increase over the month. The 37,481 new and existing homes sold in April represented an increase of 0.5 percent from March.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.