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Repossessed homes backlog is reported in California in May. According to data, about 111,824 distressed properties in California were scheduled for auctions.

However, only 16 percent of properties scheduled for auctions were actually put on the auction block. Year-to-date comparison showed that 49 percent of foreclosed properties were auctioned off.

Additionally, 40 percent of last month’s delayed repossessed homes auctions were requested by lenders, while 33 percent were postponed as a result of the agreement between homeowners and lenders.

According to industry experts, the data showed that lenders are doing their best to help distressed homeowners and delay foreclosures. They claimed that there was less number of properties being foreclosed compared with the percentage of homes scheduled for foreclosure or in default.

Also last month, the number of homeowners who received notices of default dropped by 4 percent from a month ago and 3 percent from the April total the previous year. The total number of statewide foreclosure filings was 40.870.

Notices of default are the first stage of foreclosure proceedings. It occurs when a homeowner missed paying his mortgage installments.

Meanwhile, May foreclosures scheduled for auctions declined by 30 percent to 17,871 compared with the same month a year ago. Furthermore, 84 percent received opening bids lower than the outstanding amount of loan. An average opening bid for repossessed homes was 59 percent of the total loan amount.

For example, if a foreclosed home with a loan of $100,000 was scheduled for auction, the average opening offer would be around $59,000. On the other hand, of the total number of distressed properties that went into the auction block in May, almost 88 percent were withdrawn by lenders when third-party bidders failed to win the property.

Usually properties that remained unsold after the auction were taken back by lenders to sell on private auctions or open market.

Meanwhile, California’s May foreclosure rate was the second highest in the country despite the 4 percent drop in the state’s foreclosure activity from April. One out of 144 homeowners received a foreclosure filing last month, totaling 92,249 properties.

The number of foreclosure filings last month represented a 23 percent increase from the same month a year ago. On a positive note, bank repossessed homes in California declined 1 percent from April to May and defaults inched down by 18 percent.

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