February 2010: California Leads the Nation in Foreclosure Activity

Foreclosure-related filings topped 300,000 last month, according to foreclosure-tracking firm RealtyTrac.

Nationwide, 1 in every 418 households was served some form of foreclosure notice but -- as always -- foreclosures are more common in some areas than others.

In February 2010, 4 states accounted for more than half of the country's foreclosure-related activity:

•California : 22.2 percent
•Florida : 17.5 percent
•Michigan : 6.5 percent
•Illinois : 5.6 percent

Combined, these four states represent 56% of foreclosures but just 25% of the population. Clearly, foreclosures are a local phenomenon.

They're also the spring season's biggest story.

Because foreclosures and other "distressed" homes tend to sell at a discount, they now account for 38 of all home resales. This is up from 33 percent in the month prior.

For first-time homebuyers, move-up homebuyers, and even for investors with more than 4 properties, buying foreclosures in California has never been easier.

Foreclosures are big business and new listings are available 24/7.

My clients have told me these 3 websites, in particular, are a good place to start for foreclosures, if that's what interests you. Each site offers a free, 7-day pass and that's usually enough to help you scout the market for something worth buying.

1.RealtyTrac offers free access to foreclosure listings
2.Foreclosure.com offers free access to foreclosure listings
3.HUDForeclosed.com offers free access to foreclosure listings

Then, when you see something you like, talk to your real estate agent about it, or ask me for a referral by email to a skilled foreclosure-specializing agent. Negotiating for a bank-owned home is different from negotiating for a "regular" home.

You're going to want somebody experienced on your side.

High foreclosure levels have led to interesting buying opportunities. Do your search and see what comes up for you locally. Then, when you're ready for your pre-approval letter, call me and I'll take care of you. I'm experienced with short sales and REOs and would be happy arrange for your mortgage.

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John Payne is an active loan officer. Email John@JPMortgageLoans.com or call 510.799.1400 or 800.259.3424.