San Diego, CA (PRWEB) August 7, 2007
According to a new report issued by BankForeclosuresSale.com, the foreclosure scenario in California continued its downward spiral during the second quarter of 2007. California has been near the top of the list for states with the highest foreclosure inventories over the past two years, but during the recently ended quarter they reached their highest point since 1996.
Statewide, California saw 17,400 homes entering some stage of the foreclosure process from April to July. The area that experienced the most drastic increase was San Diego County, a region that has remained largely outside of the rising tide of foreclosures experienced in other parts of the state, jumping more than 450 percent from July 2006 to July 2007.
California has always been a popular location for homebuyers and real estate investors to zero in on, and many experts speculate that this is what caused their regrettable foreclosure situation.
"When you have a lot of investors buying up properties during booms like the one we saw a few years ago, there's bound to be a fall. Property values then plummet, and people are stuck with overpriced mortgages on homes they cannot sell in a sluggish market. That's when bank foreclosures come into play," remarked a BankForeclosuresSale.com representative.
The BankForeclosuresSale.com report hones in on a statistic of special interest to those considering purchasing homes on the foreclosure market. During the second quarter of 2006, almost 90 percent of the homes that went into default, the first stage of foreclosure, eventually avoided a foreclosure sale by refinancing or selling the property in question. However, during 2007, only 55 percent of homes going into default were able to avoid foreclosure.
The BankForeclosuresSale.com specialists took this to mean two things. First of all, this shows that, as a general rule, a rate of default may be able to remain the same, while the rate of foreclosure, and thus the foreclosure inventory, can still increase. Second, this data is causing many to speculate that the California bank foreclosures market is flooded. Less homes being bought up in default usually suggests a flooded market, meaning prices on bank foreclosures and other types of properties should be way down.
"We're looking at an optimum time to buy bank foreclosures in California. The surplus inventory far exceeds the demand, which means buyers will be able to get some extraordinary prices from homeowners looking to avoid a foreclosure on their record."
Since foreclosures already offer bug discounts, taking advantage of the chance for extra savings could mean the chance for a very inexpensive and ultimately profitable investment.
BankForeclosuresSale.com specializes in providing highly accurate market studies and information on bank foreclosures, pre-foreclosures and all kinds of other foreclosure properties to the public. Their experienced team also specializes in delivering high quality foreclosure listings to help members locate discount homes anywhere in the country. Learn more at http://www.bankforeclosuressale.com.
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