The Foreclosure Wave Continues

The foreclosure wave continues to roll across the country and Alameda is not immuned. As long as you have been awake in the last 18-months the foreclosure market has been one hot topic and from what I can tell it may be another 18 before we find something else to talk about in real estate.

To add fuel wave of information to this topic Foreclosures.com announced that completed foreclosures in February reached the highest monthly total since the foreclosure crisis began, soaring by more than 67 percent over January's reduced foreclosures, according to the latest U.S. Foreclosure Index released today by the website.

According to Foreclosures.com: In February, 121,756 new foreclosures were completed, up from 72,694 in January, which had seen a 26 percent drop from December's 97,841 foreclosures. The February number topped the previous monthly high of 104,243 new foreclosures seen last September - then the high-water mark for this crisis. It shows a new wave of distressed properties hitting the market.

Chart of Alameda Listing

Link to Lager Version

In the past three months Alameda saw a peak on February 15, 2009 with 40 distressed properties listed for sale on the MLS and the distressed inventory has remained flat for the past three weeks. Realtytrac as a much bigger number on their website, they list 70 properties that are Banked Owned (a.k.a. Real Estate Owned (REO)). That means their about 40+ properties that are not on the MLS. The website list 186 properties in pre-foreclosure, these are that are behind on payments and foreclosure process has begun. Here is a chart from Realtytrac tracking foreclosure sales:

The Island is seeing the flood leak into our community. Job loss, bad loans and declining home values have been a little more moderate, but the impact is now coming home. The pre-foreclosure number is a real warning signal for what may come. All the efforts by banks and goverment seem to be coming up short.

“Despite the efforts to stem foreclosures by government and many banks, the hopeful signs of the last quarter of 2008 and January didn't follow through in February,' says Alexis McGee, foreclosure expert, educator, and author. 'Many homeowners are in trouble and rising unemployment continues to threaten to intensify the problem.”

The U.S. Foreclosure Index also found the number of pre-foreclosure filings - the original filings that can lead to a foreclosure - increasing to the highest monthly total since the foreclosure crisis began, hitting 207,703 in February, up more than 24 percent from 166,860 in January and up 9 percent from 190,467 in December, the previous monthly high.

Foreclosures increased across the country despite a temporary halts by major banks and Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac previously had foreclosure moratoria from Nov. 26 to Jan. 31, which helped to slow down foreclosures during that period, and reinstated the moratoria in mid-February. Nearly all the bank moratoria have since expired or are about to expire.

The top five states that continue to dominate the numbers of foreclosures for February are California, Florida, Arizona, Michigan, and Texas.

California continues to dominate the numbers:
-- California: 23,988 foreclosures, up 67 percent from January and down 24.7 percent compared to September's high.
-- California: February pre-foreclosures are up 35.4 percent from January, and 7 percent higher from December.

Top 10 States Nationwide REOs Last 6 months

1. California

2. Florida

3. Arizona

4. Michigan

5. Texas

6. Georgia

7. Ohio

8. Nevada

9. Illinois

10. Tennessee

Top 10 States Nationwide Pre-Foreclosure Last 6 months

1. Florida

2. California

3. Arizona

 4. Illinois

5. Nevada

6. Texas

7. New Jersey

8. Georgia

9. Michigan

10. Oregon

Top 10 List Source: Foreclosures.com