Auctions for Fixer Upper Homes for Sale and Other Foreclosures Rise

by on States

The number of auctions, which feature foreclosed properties like fixer upper homes for sale, increased in California in December 2010 compared with the previous month. The number of foreclosure auctions jumped in the state despite a decline in foreclosure-related filings and housing sales during the same period.

The increase in sales auctions that offer Modesto foreclosures for sale and other distressed properties from various areas of the state happened at the same time that foreclosure starts are declining in the region. Housing data for the month showed that default notices issued to homeowners dropped by 16.7% compared with November 2010. According to housing industry experts, the decline in the number of issued filings is mainly due to the controversy surrounding lenders' alleged use of faulty documents in processing foreclosed properties.

Experts also stated that the traditional slowdown in foreclosure activities and the buying and selling of California bank foreclosures for sale during months leading to the Christmas season also contributed to the decline. Although notices of default fell in the state, the number of notices for trustee filings climbed by 1.5% during December compared with November.

Meanwhile, sales of foreclosed properties, like fixer upper homes for sale, also recorded a small decline. The number of foreclosed houses reverting back to lenders dropped by 0.7% for the month, while foreclosures purchased by third party buyers, mostly investors, also dropped by 8.2%. For investors who purchased foreclosed properties from auctions, it took them an average of 157 days before they were able to resell these properties based on December housing data.

The length of time it took real estate investors to unload bank foreclosed properties for sale as reported in December represented a 6.1% increase from the average time recorded in November. Compared with December 2009, the length of time that foreclosed properties stay with investors before they are resold went up by 51%.

According to market analysts, the mixed housing data for California during the month shows that mortgage servicers are being more careful in processing foreclosed properties, such as fixer upper homes for sale, following the documentation controversy that halted sales of foreclosures in the last quarter of the year.