There were nearly 4,800 homes available for people engaged in San Jose foreclosure investing in February, based on reports released by a research firm.
In Santa Clara County, where San Jose is the administrative city, a total of 4,770 houses were posted for public auctions in February, just 80 units below the total number of homes listed for the February public auctions. In nearby San Mateo County, there were nearly 1,700 homes posted for the public auctions.
According to foreclosure analysts, the numbers of houses for the public auctions appeared to be slowing over the past months although the numbers are still just below record levels.
Additionally, the flow of pre-foreclosures in San Jose is still surging, as people find it more difficult to maintain or increase their income to make their monthly loan payments consistently. Almost 1,000 homeowners in Santa Clara County were notified of delinquency in February, a substantial increase of 25 percent from the January total and the highest monthly increase over the past 12 months. In San Mateo, the increase was even higher as total defaults rose by 32 percent.
Although the number of properties that entered San Jose foreclosure listings declined in February, the number of properties available for San Jose foreclosure investing is still high. Foreclosures in Santa Clara County fell by eight percent to 402 houses, the lowest number ever posted in a 12-month period.
The same declining trend was experienced in San Mateo County, with foreclosures falling by 13 percent to 138 houses.
The number of actual foreclosures has declined as more lenders give more time for troubled borrowers to restore their accounts. They are also allowing more homeowners to try to save their homes through the federal loan modification programs.
According to Dustin Hobbs, spokesperson for the California Mortgage Bankers Association, during normal times, it benefits banks to foreclose delinquent mortgages immediately, sell the properties, erase the nonperforming loans from their books and move on. But in these abnormal times when the market is overloaded with foreclosures, it benefits the banks to stretch the foreclosure process to regulate the flow of low-priced distressed properties into the market. At the same time, banks are also helping borrowers who are working out loan modifications.
With the relatively high number of properties posted for the public auctions, people can pursue their San Jose foreclosure investing activities and find lower-priced properties that they can turn into rentals or resell at a higher price.
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