Number of Potential Foreclosed Homes Grew in July
In July, the potential foreclosed homes in Santa Clara County, California rose in numbers despite the sharp drop in figures of actual foreclosures.
According to industry analysts, there were just so many homeowners at risk of foreclosures last month. They also noted the decline in foreclosure sales, attributing the drop to the voluntary compliance of banks to the request of state to hold off foreclosure activities.
However, analysts pointed out that government pressure on banks to help as many troubled homeowners as possible has not prevented them from placing more distressed homes on foreclosure process.
Analysts noted that because of the worsening economic condition and rising unemployment, many homeowners are falling behind their mortgage payments.
In July, about 3,519 properties were placed on foreclosure auctions in Silicon Valley, representing a 14 percent increase from the previous month and 90 percent higher from July the previous year.
Market data showed that the number of repossessed homes that were sold plummeted by 30 percent to 414 in July compared with 591 in June, and 36 percent below from the same month last year.
On the other hand, the number of foreclosure notices received by homeowners in Silicon Valley rose to 1,543 last month from 1,494 in June. The July figures were the second monthly highest posted in the region.
The number of homeowners who received notices of foreclosure auctions rose to 1,138 or 33.5 percent last month compared with 852 in June. The growing figures only showed that the foreclosure crisis in the Valley is far from over. Santa Clara County still holds the 45th position in the ranking of California counties based on foreclosures per capita.
Statewide, foreclosure sales dropped by 22.7 percent. But trustee’s sales notices increased by 36.1 percent while default notices remained unchanged. Receiving a notice of default is a sign that homeowners are on their way to foreclosure.
According to industry analysts, the drop in foreclosure sales was likely due to the increase in the number of homeowners who qualified for trial loan modifications. This indicated that the Obama Administration’s loan modification program is on its way to achieving its goal of helping homeowners across the country avoid foreclosures.
Additionally, foreclosure cancellation in the state rose by almost 25 percent last month, compared with June and 86 percent higher from the previous year.
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