Lenders Drop Bids by 37%
I recently blogged about the huge results investors are seeing at the trustee sale auctions in Sonoma county, CA (). I wanted to share with you how the rest of California is doing to give you a glance at how the auctions are working statewide.
California trends continue similiar to the national trends I’ve been reporting. Foreclosure activity dropped across the board in California, while cancellations remained flat, most likely due to the failure of the Home Affordable Modification Program (HAMP).
Here are the recent stats:
Notice of Defaults- down 18.29% year over year (first step in the foreclosure process).
Cancellations- flat at 1.15% year over year (successful loan modifications or short sales).
REOs- down 21.09% year over year (lost to foreclosure, reverted to lender).
Sold to 3rd party- up 15.75% month over month and up 16.24% year over year (sold at the trustee sale auction to an outside bidder)
Foreclosure Bids- Average published bid (amount listed on the Trustee Sale Notice) is $375,000 relatively flat. However, the average openning bid (banks starting bid, discounted to stimulate bidding) is $235,000 (37% below published price) and the average winning bidder pays $239,000 (36% below the published price).
Notice that FEWER homeowners are getting their foreclosures solved with a loan modification or short sale in California (cancellations are down). Also notice that the amount of homes sold to outside bidders at the trustee sales are UP BIG. Proving that auction buying opportunities are flourishing right now and will continue to be our focus to find wholesale deals in 2011 and beyond.
And most importantly, notice that the lenders are lowering their minimum bids at the auctions on average 37% below the original published notice bid. Proving that there are “instant short sale approvals” happening every day, right now at the courthouse steps.
You can see why I am so excited about the potential for us to make healthy profits from buying at the Trustee Sale Auctions! And our own , Coach Sarah Garlick is going to lead the way tonight, showing us HOW we can get started in the lucrative auction business, using outside investors monies, TONIGHT in our New Live Professional Investors Webinar ““! Don’t miss out!
Hurry, or Call 800-310-7730 x2 NOW to secure your spot! Talk to you shortly…
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