San Francisco Bank Foreclosures Growing with Prices Falling

by on cities

San Francisco bank foreclosures are still growing and prices are still falling, based on data released by a San Diego-based real estate research company and by information analyst Fiserv.

In the Bay Area, a total of 18,812 default notices were sent to distressed homeowners in the July to September quarter, an increase of more than 25 percent from the third quarter last year but marked a drop of nearly 6 percent from the previous quarter.

Across California, the number of default notices increased to 111,689 in the third quarter, an increase of nearly 19 percent from last year’s third quarter, but marked a drop of more than 10 percent from the previous quarter.

The quarter-over-quarter declines indicated that loan modification efforts have been working for some homeowners as the Obama administration and other groups continue to push lenders to step up their foreclosure prevention efforts.

Analysts in the area also contend that many banks are deliberately slowing down on their foreclosure actions because they do not want to add more low-priced properties to the already overloaded lists of San Francisco bank foreclosures and they do not want to douse the fragile signs of recovery.

Based on the report, the highest rate of increase in defaults occurred in the wealthiest counties. San Francisco had 607 default notices, San Mateo had 1,263 and Marin had 428. The increase rate in San Francisco was a staggering 72 percent while the increase rates in San Mateo and Marin were 58.5 percent and 65.9 percent, respectively.

Trustee deeds meanwhile in the Bay Area dropped by more than 38 percent from last year’s third quarter to 7,462, but this marked nearly 8 percent of increase from the previous quarter. Statewide, the number of trustee deeds dropped by more than 37 percent from last year’s third quarter to 50,013, but marked an increase of nearly 10 percent from the previous quarter.

Out of all foreclosure homes in the Bay Area, 7,700 houses or 16 percent have not been resold in the third quarter.

According to Fiserv, the current median home price of $675,000 in San Francisco metropolitan area marked nearly 26 percent of total loss in value since 2006. Fiserv expects prices to fall further by another 8.3 percent in 2010 and then starts to gain by a soaring 14.3 percent between the middle of next year and June 2011.