Foreclosures fall after sizable increase in the month of August
After a substantial jump in foreclosures in the month of August, largely a result of Bank of Americas tremendous inventory of distressed properties, foreclosures went back to a level more in line with the prior month, yet well below peak foreclosure numbers. California Foreclosures have dropped nearly 56 percent since its highest levels.
Filings for Notice of Defaults fell dramatically from a high of 58,623 in March 2009 to 25,778 as of today. The state of Arizona also had a similar decline in the number of Notice of Trustee Sale filings, from a high level of 14,722 in March 2009 to less than 6,000 filings in September 2011. This represents a decrease of nearly 60%. The state of Washington, which had the biggest decrease of any state, with 71.5 percent fewer Notice of Trustee Sale filings last month, than at the highest level back in June of 2009.
Overall sales of Foreclosures were a different story this month. Arizona, California and Nevada, all showed an actual decrease in sales of foreclosed homes, while Oregon and Washington both had increases. Even with the declines in overall sales, the percentage of foreclosed homes bought by third parties, generally investors, was at or near it’s highest levels.
In California for example, third party investors represented 27.4 percent of all sales last month, which is a record in California. In the state of Arizona, the number of investor purchased homes reached 38.3 percent, Nevada even came close to a record third party sales month, set back in the month of August at 29%. Foreclosure home sales to third parties in Washington was up 15%, and Oregon was the only state to have an actual decrease.
