California again led the nation in foreclosure notices issued in the first six months of 2010, according to the Irvine-based online resource RealtyTrac, and Riverside and San Bernardino counties ranked in the top three areas statewide. But the foreclosure rate was down 15 percent from the previous six months and down nearly 13 percent from the first six months of 2009.

A total of 340,740 California properties received a foreclosure filing -- default notices, auction sale notices and bank repossessions -- in the first half of 2010, accounting for 1 in 5 of the total property filings nationwide. More than 1.6 million U.S. properties received foreclosure filings from January to June, a 5 percent decrease from the previous six months but an 8 percent increase from the same period in 2009, RealtyTrac reported.

"The second quarter was a tale of two trends," James J. Saccacio, chief executive officer of RealtyTrac, said in a press release from the company. "The pace of properties entering foreclosure slowed as lenders pre-empted or delayed foreclosure proceedings on delinquent properties with more aggressive short-sale and loan-modification initiatives. Meanwhile the pace of properties completing the foreclosure process through bank repossession quickened as lenders cleared out a backlog of distressed inventory delayed by foreclosure prevention efforts in 2009.

"The midyear numbers put us on pace to exceed 3 million properties with foreclosure filings by the end of the year, and more than 1 million bank repossessions," Saccacio continued. "The roller-coaster pattern of foreclosure activity over the past 12 months demonstrates that while the foreclosure problem is being managed on the surface, a massive number of distressed properties and underwater loans continues to sit just below the surface, threatening the fragile stability of the housing market."

Translation: Look out! It could get really crazy.

Riverside County tallied 7,260 filings or 1 in every 109 housing units. San Bernardino had 5413 foreclosures, 1 of every 126 units. Only Los Angeles County had more filings: 13,417, 1 in every 254 units.

The Southwestern states continued to fuel the foreclosure rate trend, with nearly 6 percent of all Nevada housing units (one in 17) received at least one foreclosure filing in the first half of 2010, giving Nevada the nation's highest foreclosure rate during the six-month period despite decreasing foreclosure activity.

Arizona had the second-highest state foreclosure rate, with 3.36 percent of its housing units (one in 30) receiving a foreclosure filing, and Florida registered the nation's third-highest state foreclosure rate, with 3.15 percent of its housing units (one in 32) receiving a foreclosure filing during the six months.

California was next at 2.54 percent, followed by Utah (1.91 percent), Georgia (1.79 percent), Michigan (1.73 percent), Idaho (1.68 percent), Illinois (1.61 percent), and Colorado (1.40 percent).

So what do these numbers indicate? Are we leveling out at the bottom or is this just slowed activity by the banks, which have a ton of non-performing assets on the books? Prices in Southern California actually have increased the past two months, year over year, but was that a result of the decrease in inventory, the tax-credit-increntive surge and low interest rates?

We're smack-dab in the middle of real estate season here, and homes under $250,000 are still garnering multiple offers in the first 10 days. But homes in the $350,000 range have slowed a bit (strictly anecdotal evidence here, based on my observations).

It's too soon to tell where we go in the last half of the year. But one thing can't be disputed. Foreclosures and short sales will continue to dominate the real estate market for the next 3-5 years, possibly longer.

(Brian Bean is a real estate broker and ambassador for Helping A Million Homeowners, a nationwide organization that is committed to helping alleviate the financial stress that so many homeowners face today. He can be reached directly at Brian@BigDreamInc.com.)

Brian Bean
Real Estate Professional
www.DreamBigRealEstate.com
www.IEShortSalePros.com
www.HelpingAMillionHomeowners.com

I've been specially trained to negotiate short sales with an emphasis on deficiency waivers.

"If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours."

- Henry David Thoreau

Labels: Corona, Foreclosure, Home Prices, Inland Empire, Loan Modification, Moreno Valley, Murrieta, Real Estate, Riverside, Short Sales, Statistics, Temecula