Record breaking foreclosure rate in California gjohnsit
8/7/2008 4:19:13 PM
"record breaking" and "foreclosure" are not good words to put together July was another record month for foreclosures in the state of CA with all hell breaking lose and banks taking back roughly 26,500 homes for $12.5 billion. 'Record-breaking' is not a good thing in the foreclosure universe. This 25% increase breaks all records ever posted and all foreclosure estimates. In May we passed $10 billion for the first time with $10.4 billion in loans, or roughly 24k homes, going back to the banks. In June, there were $10.2 billion in loans taken back by the banks, a slight drop. This was an encouraging sign until July's figures were tallied.To clarify, when I say ‘loans taken back by banks', these are actual foreclosures. When a home goes to the auction block the bank puts up the opening bid. If no 3rd party bidder comes in, the bank buys it back. All year long in CA at least, banks have been buying back roughly 97-98% of all homes that go on the auction block. That is an astounding figure in and of itself!
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