Wednesday, September 23, 2009

Delayed Foreclosures Stalk Market

From the WSJ
"For now, the delays have led to what is probably a temporary drop in the supply of bank-owned homes in California and other places where investors and first-time home buyers have been competing for bargains. In Orange County, Calif., the number of bank-owned homes listed for sale dropped to 322 in early September from 1,404 in November 2008, according to Altera Real Estate.
But the number of foreclosures is expected to increase in the fourth quarter as mortgage-servicing companies determine who is eligible for a loan modification and who isn't. "We are going to see a spike from now to the end of the year in foreclosures as we take people out of the running" for a loan modification or other alternatives, says a Bank of America Corp. spokeswoman. Foreclosure sales had dropped to "abnormally low" levels in response to government efforts to stem foreclosures, she adds."

Not exactly hot news for those following  foreclosure activity. I am active in that market and my experience is that of 30 or 40 listed foreclosures at my local Sheriffs Sale, 90% are either postponed or bought by the bank for a nominal sum. This has been consistent for the last 6 months.

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