ForeclosureRadar reports that foreclosure inventory in California continued its steady decline in November. The total number of preforeclosures, foreclosures scheduled for sale, and REOs fell 7.6 percent from October to November and declined by 31.8 percent from a year ago. According to ForeclosureRadar, “the significant decline in foreclosure inventory over the past year has contributed to what some are calling an ‘inventory crisis’ of total homes for sale.”
Foreclosure cancellations are a part of the reason for the decline. Cancellations rose 4.7 percent from October and spiked 69.9 percent in the past two months. ForeclosureRadar believes short sales and successful modifications are likely leading to cancellations rather than statutory time frames or filing errors. Foreclosure starts and sales were also down in California. Starts fell by 19.9 percent month-over-month, and foreclosure sales decreased by 14.8 percent from October. In California, foreclosure starts totaled 11,533 in November after dropping from 14,398 the month before. Foreclosure sales in California totaled 7,494.