Los Angeles Times
Foreclosure flood: 1,000 auctions per day in California
California’s foreclosure crisis passed another ominous milestone in April, when more than 1,000 foreclosed homes were auctioned off every weekday at courthouses across the state, the auction tracking firm ForeclosureRadar reported today.
The April total of foreclosure sales at auction — 22,838 for the state — represents a jump of 44% over March totals and the highest level ever in California, ForeclosureRadar reports.
. . . As lenders grow more desperate to avoid taking possession of foreclosed homes, they are offering bigger discounts at courthouse auctions, with “discounts of 40% to 50% from prior sales price common in many parts of the state,” ForeclosureRadar reports.
Still, the auctions are usually uneventful, and usually do not attract serious bids. “The majority of these sales received no third-party bid and reverted back to the lender despite the largest across-the-board discounts ever offered at trustee sales auctions,” ForeclosureRadar reported.
It amazes me that banks will foreclose a property and put it on the courthouse steps at auction at enormous discounts, rather than renegotiate the mortgage.
Anything not to have to actually work for a living in the banking business. Desperate homeowners thrown out of homes, with their furniture piled in the street and no place to go, instead of paying a reduced obligation, mowing the lawn, cleaning out the gutters and contributing to a sense of community. No doubt there are homeowners who are so far over their heads that no renegotiation would suffice.
But 23,000 a month–and growing?
Banks, lenders of last resort and other charlatan types have taken a huge public relations hit in this compounded fraud. All of that could be turned around by a realistic and reasonable approach to renegotiation–certainly at far less than 40-50% discounts.
America is hurting, yet the banks are being saved and nothing–nothing–is being done to save home-ownership for families about to lose the roof over their heads.