High Inventory at Foreclosure Homes Auctions

Properties sold at foreclosure homes auctions in Brentwood, California continued to grow in September. Last month, the average foreclosure sale price in the city was $282,800. So far, there are 42 estimated repo houses for sale in Brentwood.

Out of the city's total market cap of $22,438,000, bank owned homes accounted for nearly $1.9 million dollars. The real-estate owned (REO) were nearly 52.9 percent of the total market. In September, the median price for REOs was $270,000. Also, the average foreclosure sale price was 274,000. It is estimated that there is a difference of 103 percent between the listing to selling ratio for REOs. But data showed that REOS were selling at foreclosure homes auctions at a premium of 3 percent which is above their listing price.

About 19 distressed properties in the city were supported by the Federal Housing Authority (FHA) loans. And the average sale price for FHA distressed home was $281,100. The total amount of REO/FHA portfolio was $5,342,000, representing 44.9 percent of the overall REO area index. This means that 44.9 percent of the foreclosure inventory in the city was bought using FHA loans.

Meanwhile, repossessed homes that were bought using conventional loans posted an average sale price of about $292,000. Conventional financing accounted for about 24.6 percent of the total REO market index in the city. The average percentage is estimated to be nearly 10 transactions. Additionally, the conventional median REO amount totaled $288,600.

So far, there were 10 cash foreclosure deals that were completed. The figures accounted for 22.8 percent of REOs or 23.8 percent of the overall house sales. In September, the average cash foreclosed property amounted to $271,000.

On the other hand, the median sale price for REO homes in Brentwood was $260,000. The number of days that REOs remained on the market averaged 33 for FHA, 22 days for cash-financed purchases and 18 for conventional financing.

Overall, sale transactions in Brentwood experience a moderate decline. Banking analysts said that the decline was due to attempts by banks to workout solutions for sale of distressed houses before they foreclosed on them. They said that so far, loan modifications in Brentwood failed to meet expectations but short sales are starting to become a trend when it comes to saving a property from foreclosure homes auctions.

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