Bottleneck ahead: Foreclosed houses for sale are piling up

Fresh foreclosure stats indicate the pipeline of homes for sale in Los Angeles is filling up quickly -- with recently foreclosed homes.

ForeclosureRadar tracks initial foreclosure auctions, the ones usually held on courthouse steps, in which 98% of foreclosed homes are taken back by lenders, who then begin the sometimes lengthy process of bringing the foreclosed homes to market one at a time.

In February, according to ForeclosureRadar, 2,496 homes sold at these initial foreclosure auctions in Los Angeles County. During the same period, according to DataQuick, only 3,468 homes sold in normal, arm's-length transactions in the county.

Though these numbers are apples to oranges, coming from different sources and reflecting different methodologies, the trend is clear: Foreclosed properties are piling up, and are likely to play an increasing role in setting prices in parts of the county.

Here are the DataQuick and ForeclosureRadar numbers for L.A. County from the past four months:

Month      Sales (DQ)       Foreclosure auction sales (ForeclosureRadar)
Nov.        4,468                  1,653
Dec.        4,430                  2,138
Jan.         3,398                  3,201
Feb.        3,468                  2,496

There's one important point to be made about these stats: According to ForeclosureRadar's tracking, L.A. County does not have one of the more severe foreclosure problems in California -- 34 other counties have more foreclosures per capita. Which is a round-about way of saying that, as bad as the foreclosure problem is here, it is much, much worse elsewhere in the state.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com.
Hat tip: Cal
Photo Credit: A foreclosed house at 846 N. Clybourn Ave., Burbank, via David Silverstein.

Comments

[CD]

That AIrbus tanker will be the ghost tanker. The French cannot deliver, too many strikes, too much problems with their German friends. It's just a PR coup and a very funny one. How many bottles of "Veuve Cliquot" Champagne and evenings at the Moulin Rouge with the mademoiselles of the night hummmmm.........
We shall never know....Or could we ????

[MyLessThanPrimeBeef]

Xtine, to be correct, he actually wrote Hussein Osama, not Hussein Obama.

I think it is somehow related to the reason why Bush, while not calling Adolph Hitler Adolph, decided to be friendly and on a first name basis and called Saddam Hussein Satan, err, check that, Saddam.

In both cases, they try to avoid the name Hussein, but apparently for different, yet subtle, very subtle indeed, reasons. One wants to drop Hussein because he likes Satan, sorry again, Saddam better; while the other just doesn't want Hussein, period. But what can I say? Humans are very smart...too smart. I am glad I am just a little pebble.

[Kathy]

Hey Peter,

How about getting your old buddy Leo Nordine to update us on the foreclosure biz?

[investorguy]

CD: You are living proof that the chlorine in the gene pool needs to be refreshed more often.

Investors have always restarted stuck markets by helping banks get properties off their books, and underwater sellers to get out in one piece.

You need to turn off HGTV and get out into the real world. Not all investors are amateur "flippers."

Those of us who are professionals buy a distressed product, fix it up, and get it back onto the tax rolls, either as a rental or at realistic sales prices in the hands of people who can actually afford it.

And I will not waste any more time on you.

[REO Nordine King of WTF Pricing]

We should here from Leo Nordine?

Look at this gem from Long Beach (Nordine listing). Regardless of Redfin's dates, it has been on the market for over a year without a price change.

http://www.redfin.com/stingray/do/printable-listing?
listing-id=1333294

Additionally, the second house is a 1/4 mile away. WTF? I understand how an individual homeowner might sit on a WTAF price wating for someone to end the nightmare, but a bank?

http://www.redfin.com/stingray/do/printable-listing?
listing-id=1563817

One last thing, the bank owned property is distressed (no appliances, plywood cabinets, etc.). The second proeprty is compeltely remodeled and clean.,

[Jeff]

Lawrence Yun is a totally discredited economist...he's a shill for the real estate industry, and his forecasts are always dead wrong.

[Rob]

"Airbus tankers for the Air Force?"

I saw some guy in the Boeing parking lot playing Taps on his French Bugle.... Ironic... : )

Use to work for MDAC in LBC. au revoir et salut...

[landman]

The house in the picture, 846 N clyborn
has not been sold! It fell through. The condition of the house may have scared them off! This place is a mess and needs new evertything. and at something like $327 a sq ft. This baby will be sitting for a long time I am sure