Lower Interest Rates & Now Declining Foreclosures... Now's the time to buy!

March 20, 2008 - PRLog -- California foreclosure rates declined in February, even on a daily average basis, according to a monthly report Wednesday from ForeclosureRadar, a Discovery Bay-based company that says it tracks every California foreclosure with daily auction updates.

Foreclosure sales at auction declined 15 percent to 16,931 sales with a combined loan value of $6.85 billion. Notices of Defaults, the first step in the foreclosure process, were down 7.6 percent to 37,362. There were 18,636 Notices of Trustee Sale, which set the auction date and time, down 20 percent from January.

Despite the declines the numbers are significantly higher than Q4 2007 averages -- defaults higher by 26 percent, and foreclosure sales higher by 36 percent.

"February declines are a welcome break from the astonishing increases in December, 2007 and January, 2008,” says Sean O’Toole, founder of ForeclosureRadar. “Unfortunately, those increases and the continued withdrawal of lending options point to more trouble ahead. Based on current activity levels, we still do not expect foreclosures to peak earlier than the third or fourth quarter of 2008."

Lenders continue to take back 98 percent of foreclosures at auction, despite offering substantial discounts.

A year ago opening bids were discounted 30 percent or more on just 3 percent of sales. Today, 77 percent of sales are discounted an average of 19 percent and 31 percent are discounted 30 percent or more.

Of the foreclosed loans for which ForeclosureRadar has determined loan position, 98 percent were first mortgages with the majority of those properties having their second mortgage wiped out at sale.

The majority of foreclosed loans were originated in 2006 (46 percent), followed closely by 2005 (36 percent), and for the first time 2007 (10 percent) which overtook 2004 (5 percent).

At the county level, the majority of large counties saw overall foreclosure declines, while a number of smaller inland counties saw continued increases despite the overall decline.

Five of the state’s “top ten” counties for foreclosure sales in February are in the Central Valley.

San Joaquin County leads the state in a per capita basis with one auction sale for every 709 residents. That’s 6 percent less than January, but 431 percent higher than in February 2007.

Merced County is second at one sale for every 781 residents. Yuba County is third in the state with an auction sale for every 831 residents. Stanislaus County is ranked fourth by ForeclosureRadar, with 842 residents per sale. Sacramento County is sixth in the state with one home hitting the auction block for every 995 residents.

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I am a Real Estate Agent proudly serving Kern County. Please visit my website, www.jasonthoele.com to search the MLS and find your dream home in Arvin, Bakersfield, Delano, Lamont, Shafter, Taft, Tehachapi and Wasco. I am a proud member of the BAofR (Bakersfield Association of REALTORS), CAR (California Association of REALTORS and NAR (National Association of Realtors). I have been in the Real Estate business for approximately 7 years buying and selling homes here in Bakersfield.

Website: www.jasonthoele.com