Foreclosure numbers in Big Bear are still on the rise.
The foreclosure filings in July 2009 were up 16% from June 2009, and 81% from July 2008.
Keep in mind, foreclosure filings are made up of Notices of Default, a recorded document that starts the foreclosure process, Notices of Sale, a recorded document that sets the date for the Trustee Sale, and lastly, Trustee Sales, properties that go back to the bank or sold to third parties.
While the overall news on the real estate market may appear to be getting better, foreclosure filings are not.
Here’s how the foreclosure numbers broke down for July 2009.
Notices of Default (NOD) – 99 total, up 10% from June and up 46% from July 2008.
The NODs have been hovering around for the late 6 months. This means that every month, nearly 100 property owners in Big Bear are starting down the foreclosure road. I don’t have the exact stats, but my professional guess is that 80% or more of these will ultimately go back to the bank and eventually end up on the market. This is not a great sign for things to come.
Until this number starts to shrink, we will continue to see bank owned properties hitting the market in Big Bear.
Notices of Sale (NOS) – 101 total, up 46% from June and up 77% from June 2008.
101 is the highest number we’ve seen in Big Bear. This means there were 101 properties in Big Bear that the Banks set a sale date on in July. Most of these will show up as bank owned and on the market for sale over the next few months. More bank owned properties on the market means more competition with organic sellers, and depressed prices.
While this number did go down, it is still one of the highest months we’ve seen in Big Bear, and I expect that to continue.
Given that the foreclosure numbers are a good measure of what we will be seeing 6-12 months down the road, the real estate market in Big Bear still has some rough waters ahead.
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