What really happens when properties finally hit the auction block? Well... here's an interesting chart looking at all the foreclosure home auctions in the state of California from December 20098 through 2009. It shows that most of the properties are bought back by the bank - take a look at the red line.
However, let's take a closer look at the dark line, the one in the middle that is on the rise. It shows the number of homes where the auctions have been cancelled. Reasons for it? Many distressed home sellers are trying to minimize the impact on their credit score by negotiating a short sale on their property with the bank. In many instances, if a home seller or a real estate agent negotiating on their behalf, can bring an offer to the bank, the lender will cancel or delay the auction date.
So... if you are a Pasadena neighborhood home owner ready to walk away from your home and leave it for the bank... Wait... there might be a way to have you walk away with a smaller dent on your credit. Contact a reputable real estate agent experienced with working short sales.
California Foreclosure Statistics for December 2008 through December 2009:
The orange line shows the number of homes that were purchased by investors or 3rd parties. As you can see the numbers are significantly lower - less than 1 in 6 homes that are up for auction fall into this category. Reasons are many - investors need all cash, they accept tremendous risk and inherit any and all title claims to the property.
If you are interested in seeing more data on foreclosure statistics in California, please visit our Foreclosure Search site. If you are home owner that is having financial difficulties and need to understand your options, please do not hesitate to give us a call.
IRINA NETCHAEV & ASSOCIATES
Pasadena Real Estate Agents