{"id":402806,"date":"2010-03-08T08:31:55","date_gmt":"2010-03-08T13:31:55","guid":{"rendered":"http:\/\/www.foreclosuredeals.com\/wp\/?p=5198"},"modified":"2010-03-08T08:31:55","modified_gmt":"2010-03-08T13:31:55","slug":"los-angeles-home-auctions-delayed-strategically-by-lenders","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/402806","title":{"rendered":"Los Angeles Home Auctions Delayed Strategically by Lenders"},"content":{"rendered":"

Los Angeles home auctions<\/a> are being strategically delayed by lenders for various reasons, based on reports from several banks, homeowners and housing organizations.<\/p>\n

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Lenders are not completing their foreclosure filings due to one or more of the following: giving time for loan modifications, avoiding maintenance costs, complying with federal programs, giving time for short sales<\/a>, controlling the foreclosure inventory on the market to prevent sharp price declines or avoiding bad publicity.<\/p>\n

According to a research firm, banks now are taking about 229 days to put distressed properties into lists of foreclosed homes in Los Angeles<\/a>, a sharp increase from the 146 days that lenders take to complete foreclosures in August 2008.<\/p>\n

The delays in completing pre foreclosures in Los Angeles<\/a> have partly pushed up home prices in the metro area in February this year. According to Clear Capital, home prices in Los Angeles gained 2.2 percent during the rolling quarter covering February 2010, contributing to the high number of best performing California cities in terms of home price appreciation.<\/p>\n

Meanwhile, based on another report, home prices continued to improve in the metro area despite a year-over-year rise in foreclosure filings in January because lenders were regulating the flow of properties entering Los Angeles home auctions.<\/p>\n

In January this year, the pace of foreclosure activity in the Long Beach-Los Angeles metro area increased year-over-year to 3.8 percent of all households with mortgage loans in the area, an increase from 2.2 percent in January last year.<\/p>\n

The rate of mortgage delinquency also increased to 12 percent, an increase from the January 2009 default rate of 7.4 percent. These delinquent mortgage loans have missed more than three payments.<\/p>\n

The 3.8-percent foreclosure rate<\/a> of Los Angeles was slightly higher than the statewide rate of 3.8 percent, but was much higher than the nationwide rate of 3.2 percent.<\/p>\n

The Los Angeles default rate of 12 percent was again slightly higher than the statewide rate of 11.4 percent, but was far above the nationwide rate of 8.66 percent.<\/p>\n

Despite the heightened foreclosure activity when compared to filings in January 2009, lenders exercised restraint in completing these filings. According to Jumana Bauwens, spokesperson for Bank of America, in contrast to what is being described in the media, BofA continues to find solutions to keep homeowners in their properties.<\/p>\n

Similarly, Citibank said it has stopped putting extremely distressed homes<\/a> into Los Angeles home auctions quickly because it has been encouraging homeowners to surrender their properties peacefully in exchange for six months of free rent.<\/p>\n

Search home auctions in other California Top Cities:<\/p>\n