Post by Sapphire Capital on Jul 23, 2008 0:44:54 GMT 4
Record number of California homeowners default on mortgages in 2nd quarter
Default notices are recorded on 118,020 homes from April to June, up 125% from the same period last year, a real estate information service says.
By Peter Y. Hong, Los Angeles Times Staff Writer
July 22, 2008
A record number of California homeowners defaulted on mortgages last quarter, a real estate information service reported today.
Mortgage servicers recorded "notices of default" on 118,020 homes from April to June, up 125% from the same period in 2007, according to DataQuick Information Systems. That total was the highest since the firm began recording foreclosure statistics in 1992.
Southern California foreclosuresBlog: No escape: Foreclosure more likely than ever for defaulting homeowners
Most of those homeowners will likely have their homes repossessed, likely prolonging the current foreclosure crisis.
The pace of defaults slowed in the second quarter, however, with the total rising 6.6% from the first three months of the year. By contrast, first-quarter foreclosures had shot up 39% from the last quarter of 2007.
DataQuick president John Walsh said the relatively small quarterly increase may show "some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process," but also noted banks "may just be swamped and can't handle processing any paperwork."
SoCal housing data by ZIP
Find the latest home sales, prices and foreclosures in your area, or see which ZIP Codes recorded the biggest increases in foreclosures.
City
ZIP Code
County - LOS ANGELES COUNTY ORANGE COUNTY RIVERSIDE COUNTY SAN BERNARDINO COUNTY SAN DIEGO COUNTY VENTURA COUNTY
Notices of default mark the first stage of the foreclosure process, when a borrower misses several monthly payments. If the borrower is unable to work out an agreement with the lender, the home is foreclosed.
DataQuick estimates 78% of homeowners in default eventually are foreclosed, compared with 52% last year.
The second-quarter default figures were a record high for all but a few of the state's 58 counties, including Los Angeles County.
Foreclosed houses accounted for 40% of homes re-sold in California from April to June, up from 5.4% a year ago. The percentage varies widely across the state. Foreclosures accounted for only 3% of home resales in San Francisco County, but made up 75% of resales in Merced County.
Most of the loans that went into default last quarter were originated in 2005 or 2006. During that period, home prices "went too high, fueled by the availability of dicey home loans. An added element was speculative buying," Walsh said.
Default notices are recorded on 118,020 homes from April to June, up 125% from the same period last year, a real estate information service says.
By Peter Y. Hong, Los Angeles Times Staff Writer
July 22, 2008
A record number of California homeowners defaulted on mortgages last quarter, a real estate information service reported today.
Mortgage servicers recorded "notices of default" on 118,020 homes from April to June, up 125% from the same period in 2007, according to DataQuick Information Systems. That total was the highest since the firm began recording foreclosure statistics in 1992.
Southern California foreclosuresBlog: No escape: Foreclosure more likely than ever for defaulting homeowners
Most of those homeowners will likely have their homes repossessed, likely prolonging the current foreclosure crisis.
The pace of defaults slowed in the second quarter, however, with the total rising 6.6% from the first three months of the year. By contrast, first-quarter foreclosures had shot up 39% from the last quarter of 2007.
DataQuick president John Walsh said the relatively small quarterly increase may show "some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process," but also noted banks "may just be swamped and can't handle processing any paperwork."
SoCal housing data by ZIP
Find the latest home sales, prices and foreclosures in your area, or see which ZIP Codes recorded the biggest increases in foreclosures.
City
ZIP Code
County - LOS ANGELES COUNTY ORANGE COUNTY RIVERSIDE COUNTY SAN BERNARDINO COUNTY SAN DIEGO COUNTY VENTURA COUNTY
Notices of default mark the first stage of the foreclosure process, when a borrower misses several monthly payments. If the borrower is unable to work out an agreement with the lender, the home is foreclosed.
DataQuick estimates 78% of homeowners in default eventually are foreclosed, compared with 52% last year.
The second-quarter default figures were a record high for all but a few of the state's 58 counties, including Los Angeles County.
Foreclosed houses accounted for 40% of homes re-sold in California from April to June, up from 5.4% a year ago. The percentage varies widely across the state. Foreclosures accounted for only 3% of home resales in San Francisco County, but made up 75% of resales in Merced County.
Most of the loans that went into default last quarter were originated in 2005 or 2006. During that period, home prices "went too high, fueled by the availability of dicey home loans. An added element was speculative buying," Walsh said.