In the first six months of this year, the number of bank REO properties in the state surged even higher, particularly in Coachella Valley where a rise of 68 percent in foreclosure rate was reported, compared with the same period last year.

According to current market data, the total number of California households that received a foreclosure filing rose to 391,611 for two quarters of this year. In Coachella Valley, about 12,007 homeowners received default notices, auction sales or bank REO properties. Furthermore, the number of foreclosure filings in the valley jumped significantly from 7,115 for the same period the previous year.

According to industry experts, the foreclosure crisis ballooned despite local, state and federal efforts to stop the spread of the problem. Experts noted that majority of the foreclosure homes activity occurred due to the rising unemployment.

Compounding the problem is the growing number of homeowners who found themselves owning properties with market values less than the total mortgage they owed,Meanwhile, the foreclosure rate in Coachella Valley was higher than the statewide figures. But real estate experts said that the figures could be misleading, explaining that several legal notices were filed on a property before a bank takes over it.

However some economists said that the current foreclosure rate is an indication that the flow of repossession homes activity in the valley has been constant except for those two months when a state law imposed a foreclosure moratorium. Bank REO properties are also starting to increase in Coachella Valley cities with high household income.

On a positive note, buyers are starting to flock into the valley market which contributed to a significant increase in activity in foreclosure and normal home sales. Industry experts said that multiple offers are starting to make a comeback in the valley.

Experts noted a north Palm Springs property which received 24 purchase offers. They said that the property sold for over $100,000 which was more than its list price of $175,000. They added that demand for bank REO properties increased because they are more affordable, with prices comparable to figures before 1988.

Another trend noted by industry experts is the drop in the total number of bank REO properties for sale on the market, They said that the low supply was due to a high demand.