Foreclosure sales jump in California
June 11, 2012
• Up 6.1 percent in May from April
• ‘The real problem is negative equity’
Foreclosure sales were up 6.1 percent in May in California compared to April, driven by sales to third parties that were up 14.0 percent, according to a new report from foreclosure information company ForeclosureRadar Inc., of Discovery Bay.
In California, three bills in the state Legislature under the Homeowner Bill of Rights are being actively debated. While Senate Bill 1473, Senate Bill 1474, and Assembly Bill 1950 have already been passed, “they should have little impact on foreclosure activity throughout the state,” the report says. However if passed, two of the three remaining bills (Senate Bill 1470 and Senate Bill 1471) will significantly impact the marketplace, says ForeclosureRadar.
“I continue to find the push to ‘stop’ foreclosures, as we are currently seeing play out in the California Legislature, ludicrous. The real problem is negative equity, and the only thing stopping foreclosures will accomplish is insuring that we are stuck with the negative equity problem for far longer then necessary,” says Sean O'Toole, founder & CEO of ForeclosureRadar. "I completely get why folks are mad at both the banks and the situation. However, stopping foreclosures will lead to a much longer economic recovery, increased blight, fewer jobs, lower property tax receipts, and fewer opportunities for new homebuyers and investors.”
In the Central Valley, seven counties saw foreclosure sales increase in May while five counties saw less action on the courthouse steps.
Following are ForeclosureRadar’s figures for foreclosure sales in Central Valley counties in May, with the percentage change from April in parentheses:
• Butte: 1 (-98.08 percent)
• Fresno: 420 (-4.98 percent)
• Kern: 518 (20.19 percent)
• Kings: 72 (-37.93 percent)
• Madera: 42 (-51.16 percent)
• Merced: 139 (26.36 percent)
• Sacramento: 942 (13.22 percent)
• San Joaquin: 447 (-5.50 percent)
• Stanislaus: 346 (7.45 percent)
• Tulare: 232 (14.29 percent)
• Yolo: 73 (40.38 percent)
• Yuba: 54 (8.00 percent)
In Arizona, foreclosure sales were up 30.1 percent over April but still down 39.2 percent compared to May 2011. In Oregon, foreclosure sales were down 21.3 percent compared to April but flat compared to a year earlier.