Other bubble cities are seeing foreclosures surging again. Phenix saw foreclosures jump nearly 40% from May to June. In Las Vegas the increase from May to June was a whopping 54%! Even the "it's different here" places saw an increase. Seattle foreclosures jumped 37% from May to June.
I haven't seen the number for the IE but my guess it that we dropped from May to June due to the newest meddling by the state. So instead of the lenders getting the homes on the market during the peak season, it looks like they will be backed up 3 months to the fall. That's not going to help the banks get the most for the properties..
If you think the foreclosure crisis is behind us I suggest you log on to one of the many foreclosure sites (like realtytrac or foreclosure.com) and take a look at what is coming. This image is a small part of Eastvale in Corona. It's about 1/4 of the Eastvale area and you an see just how many foreclosures are in the pipeline. The yellow dots are homes that are waiting for the trustee sale. The orange dots are pre-foreclosures and the green ones are bank owned. Most of the bank owned are probably already in escrow, because there's not a lot of REO's listed in the area. But those yellow dots will soon turn green and most of those orange dots will go yellow...then green too.