The foreclosure inventory maybe tapering off with banks urging underwater homeowners to do a short sale. To get a better picture of what the trend has been, these charts provide a visual of what is happening:
The first chart Contra Costa County Foreclosure Filings
illustrates the notice of defaults along with the notice of sale. This is where the homeowners have been notified Contra Costa County Foreclosure
notice of defaults were
the highest in July 2011 and the lowest in December. As can be seen,
January filings are up 25% over December numbers, but down for the
year.Â December had the highest "notice of sales" recorded.
Let's look at the chart below to see the actual outcomes. It is good to
see the downward trend for notice of sales, which can mean that a
another solution occured such as a loan modification, short sale or the
homeowner was able to bring the payments current.
The cancellations of sale or resulting in a foreclosure, is due to
success (in most cases) of getting approved by the lenders for a short
sale or a loan modification. The month's numbers of cancellations do not
correspond exactly to the month's notice of sales, but the overall
effect is that 14% of homes that were slated to be foreclosed upon, were
sold to individuals.
As can be seen from the chart "Contra Costa County Foreclosure Time Frame"
it is a very lengthy process, from the time the notice of default is
filed until the final sale at the courthouse on average for the past
year was 10 months. This is also a costly proposition for the banks. Add
to that the time it takes the banks once they are in possession of the
property it takes almost 8 months to resell the property.
Who knows if the "shadow inventory" is a reality. It is rumored the banks may be selling the inventory in bulk to investors with a requirement that these homes are to be used as rental units for a couple of years.
While the number of foreclosures in Contra Costa County are
decreasing, they will continue to be a part of our market for at least a
couple more years.
Current list of bank owned homes.
Source of Data/Charts: Foreclosure Radar