Sacramento Foreclosed Homed Auction Sales Rose Again
Foreclosed home auction sales and other foreclosure auction sales in the Sacramento region in June jumped by 17 percent, based on real estate records in the counties of Sacramento, Yuba, El Dorado, Placer, Sutter and Yolo.
Foreclosed home auction inventories have been growing in the Sacramento region because of current economic difficulties that are also afflicting other places in California. California has been struggling to balance its budget for several years because of the large number of services the state is supporting. Currently, Governor Arnold Schwarzenegger, state officials and lawmakers are trying to find ways to remedy the budget deficit.
In June, nearly 1,400 foreclosed home auction units and other foreclosure units were sold, equivalent to one foreclosure unit out of every 1,024 households in the region.
During the same month, a total of 2,694 default notices and 1,673 trustee sale notices were filed in the region.
Compared to other regions in California, the Sacramento region is 12th in a list of regions based on foreclosure sales.
The counties with the biggest foreclosure sales were Merced, Yuba, Stanislaus, Riverside and San Joaquin.
Across California, housing units continue to enter foreclosed home auction inventories. Foreclosure sales rose by nearly 25 percent from the previous month of May. The only positive news item from this foreclosure data is that the foreclosure increase is lower than increases in the previous months of April and May. The rates of increases in the previous two months exceeded 30 percent.
Compared to foreclosure sales in June 2008, foreclosure sales this June were lower by around 8 percent.
Residential real estate analysts in California expect foreclosures to continue to increase despite foreclosure prevention initiatives in the state.
In June, the number of default notices increased by nearly 12 percent to nearly 46,000, the second-highest monthly figure on record. The number of defaults in June also represented a 10-percent increase from June 2008.
Recently, California lawmakers passed the California Foreclosure Prevention Act, requiring lenders to give homeowners 3 months to remedy their default problem before foreclosure proceedings are started. However, banks which have launched state-approved loan modification initiatives are exempted from the 3-month foreclosure moratorium regulation. Because of state efforts, bank foreclosure filings dropped, with some lenders such as Bank of America slowing down their foreclosure actions by more than 40 percent.
Nevertheless, despite federal and state foreclosure prevention efforts in California, foreclosed home auction inventories are expected to grow because of lingering economic difficulties.
