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California Foreclosures Rebound After Impact of SB 1137

""ForeclosureRadar"":http://www.foreclosureradar.com, an online company that tracks California foreclosures and provides daily auction updates, issued its California Foreclosure Report for November 2008 today.
Despite the clear impact that California State Senate Bill 1137 had on stemming foreclosure activity in September and October, November saw significant increases across all stages of the foreclosure process, the company said. Still, even with these significant gains, foreclosure activity is still well below the peak activity level reached before SB 1137 took effect, ForeclosureRadar said.
+_ForeclosureRadar's high-level findings for the state of California include:_+
- November notice of default filings increased 28 percent from October, to a total of 21,557 filings. Despite this increase notice of default filings remain 49 percent lower than the peak reached in August 2008 of 42,416 notices. Year-over-year filings are down 16.1 percent from November 2007.
- Notices of trustee sale (which set the auction date, time, and location) increased by 10 percent from October to November, to 27,941 filings. The November figures represent a 52.8 percent year-over-year increase, but are still 28 percent below the peak levels reached in July of 2008.
- Properties taken to sale at auction increased by 14.8 percent from October, to 16,125 sales, with a combined loan balance of $6.9 Billion. This represents a 31 percent increase from November 2007. Of the mortgages sold at auction this November, 97 percent were first mortgages.
- Lenders took back 94 percent of the 16,125 properties sold at auction, with a combined loan value of $6.5 billion. Third-party purchases increased 16.2 percent from October 2008, an increase of 195 percent from November 2007.
- Statewide, the average discount for properties sold at auction in November was 38.6 percent, compared to11.5 percent from the same time last year. Discounts of 50 percent or more were offered on more than 38 percent of properties statewide in November 2008. Even those counties with the least foreclosure activity are seeing significant increases in the discounts lenders are offering at auction.
""As a percentage of the properties scheduled for auction, foreclosure sales are far below historic levels,"" noted Sean O'Toole, founder of ForeclosureRadar. ""The combination of SB 1137 and typical holiday delays appear to be creating an unprecedented backlog going into 2009.""
Looking at properties sold at auction in California last month, the average time to foreclose has increased 25 days over the previous year, to 163 total days, ForeclosureRadar reported. The time between the notice of default filing and the notice of trustee sale filing is now 116 days, with 47 days from the notice of trustee sale to the property being sold at auction, the company explained.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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