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Foreclosures drop but notice of defaults are up in Manteca

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POSTED June 23, 2012 1:58 a.m.

Completed foreclosures in Manteca - those homes that banks have taken back ownership - dropped 35.44 percent in May compared to the same month in 2011.

That is tempered, though, by the fact notice of defaults on missed mortgage payments are up 16.67 percent in May from April going from 61 to 77.

The data collected by ForeclosureRadar offers a snapshot into the health of Manteca’s housing market when it comes to foreclosure activity.

Realtors and mortgage brokers note that in California you have to miss three monthly payments before a lender can file a notice of default. Mortgage statistics show that it is more the norm in California for first loans to go five months in delinquency while second loans and lines of credit go eight months without payment before the notice of default is filed.

Since April 2011, lenders have filed 776 notices of default on Manteca homes. That represents 3.7 percent of Manteca’s 21,000 single family homes. During the past five years, one out of every five existing Manteca home has been sold as a foreclosure or a short sale.

A look at last month shows that 20 trustee sales were cancelled typically due to a successful loan medication, short sale, or a filing error. That compares to 20 homes that were legally taken back by the bank in May and another 13 foreclosed homes that had been sold to new owners.

There were 297 homes in Manteca in May in pre-foreclosure status that have had a notice of default filed but have yet to scheduled for sale. Another 231 one homes have been scheduled for sale while 194 homes had been foreclosed on and have yet to be resold by the banks.

The average published bid - the amount legal notices state a bank is owed that appear in newspapers - was $316,000 in May down 1.48 percent from $321,000 a year ago. Meanwhile, opening bids are up 18.61 percent to $210,000 and the winning bid is up 19.59 percent to $219,000.

Of the foreclosed homes that sold in May it took 568 days or more than 1½ years from the time the foreclosure process started to when it was resold . That is 57 days quicker than foreclosed homes that were sold a year ago.

A typical Manteca foreclosure in May had three to four bedrooms, 2,000 to 2,500 square feet, was built between 2000 and 2010, had an estimated market value between $100,00 and $200,000,had a loan balance between $300,000 and $400,000, and had a loan that originated in the second quarter of 2007.

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