California Foreclosure Activity Still Rising
January 22, 2008
La Jolla, CA.--The number of mortgage default notices filed against
California homeowners jumped last quarter to its highest level in more than
fifteen years, a real estate information service reported.
Lending institutions sent homeowners 81,550 default notices during the
October-to-December period. That was up by 12.4 percent from 72,571 the previous
quarter, and up 114.6 percent from 37,994 for fourth-quarter 2006, according to
DataQuick Information Systems.
Last quarter's number of defaults was the highest in DataQuick's statistics,
which go back to 1992.
"Foreclosure activity is closely tied to a decline in home values. With
today's depreciation, an increasing number of homeowners find themselves owing
more on a property than it's market value, setting the stage for default if
there is mortgage payment shock, a job loss or the owner needs to move," said
Marshall Prentice, DataQuick's president.
The median price paid for a California home peaked at $484,000 last March and
declined to $402,000 by the end of 2007, although much of that decline was
caused by significant shifts in the types of homes that were sold.
Most of the loans that went into default last quarter were originated between
August 2005 and October 2006. The median age was 22 months, up from 15 a year
earlier, indicating that the pool of at-risk home loans is getting larger.
On primary mortgages statewide, homeowners were a median five months behind
on their payments when the lender started the default process. The borrowers
owed a median $11,121 on a median $340,000 mortgage.
On lines of credit, homeowners were a median seven months behind on their
payments. Borrowers owed a median $3,379 on a median $56,000 credit line.
However the amount of the credit line that was actually in use cannot be
determined from public records.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and
Associates, monitors real estate activity nationwide and provides information to
consumers, educational institutions, public agencies, lending institutions,
title companies and industry analysts. DataQuick provides online access to
property information, including default notices. Notices of Default are recorded
at county recorders offices and mark the first step of the formal foreclosure
process.
Last quarter's default numbers were a record in 42 of the state's 58
counties. In Los Angeles County it was 63.5 percent of the first-quarter 1996
peak.
On a loan-by-loan basis, mortgages were least likely to go into default in
San Francisco, Marin, and San Mateo counties. The likelihood was highest in
Merced, San Joaquin and Stanislaus counties.
Of the homeowners in default, an estimated 41 percent emerge from the
foreclosure process by bringing their payments current, refinancing, or selling
the home and paying off what they owe. A year ago it was about 71 percent. The
increased portion of homes lost to foreclosure reflects the slow real estate
market, as well as the number of homes bought during the height of the market
with multiple-loan financing, which makes 'work-outs' difficult.
Trustees Deeds recorded, or the actual loss of a home to foreclosure, totaled
31,676 during the fourth quarter. That's the highest since DataQuick began
tracking Trustees Deeds in 1988. Last quarter's total rose 30.8 percent from
24,209 in the previous quarter, and jumped 421.2 percent from 6,078 in fourth
quarter 2006. In the last real estate cycle, Trustees Deeds peaked at 15,418 in
third-quarter 1996. The all-time low was 637 in the second quarter of 2005.
There are 7.9 million houses and condos in the state, DataQuick reported.
Notices of Default
houses and condos
| County/Region |
2006Q4 |
2007Q4 |
%Chg |
| Los Angeles |
7,445 |
13,613 |
82.8% |
| Orange |
1,983 |
4,276 |
115.6% |
| San Diego |
3,150 |
6,151 |
95.3% |
| Riverside |
4,528 |
9,913 |
118.9% |
| San Bernardino |
3,538 |
7,288 |
106.0% |
| Ventura |
794 |
1,504 |
89.4% |
| Imperial |
167 |
401 |
140.1% |
| SoCal |
21,605 |
43,146 |
99.7% |
| San Francisco |
173 |
334 |
93.1% |
| Alameda |
1,173 |
2,573 |
119.4% |
| Contra Costa |
1,511 |
3,805 |
151.8% |
| Santa Clara |
874 |
2,162 |
147.4% |
| San Mateo |
339 |
625 |
84.4% |
| Marin |
101 |
224 |
121.8% |
| Solano |
781 |
1,793 |
129.6% |
| Sonoma |
323 |
968 |
199.7% |
| Napa |
87 |
220 |
152.9% |
| Bay Area |
5,362 |
12,704 |
136.9% |
| Santa Cruz |
134 |
312 |
132.8% |
| Santa Barbara |
298 |
563 |
88.9% |
| San Luis Obispo |
119 |
291 |
144.5% |
| Monterey |
291 |
1,048 |
260.1% |
| Coast |
842 |
2,214 |
162.9% |
| Sacramento |
2,635 |
5,807 |
120.4% |
| San Joaquin |
1,293 |
3,746 |
189.7% |
| Placer |
540 |
850 |
57.4% |
| Kern |
1,044 |
2,631 |
152.0% |
| Fresno |
1,059 |
2,103 |
98.6% |
| Madera |
130 |
375 |
188.5% |
| Merced |
466 |
1,413 |
203.2% |
| Tulare |
427 |
817 |
91.3% |
| Yolo |
188 |
363 |
93.1% |
| El Dorado |
199 |
304 |
52.8% |
| Stanislaus |
909 |
2,594 |
185.4% |
| Kings |
56 |
134 |
139.3% |
| San Benito |
56 |
232 |
314.3% |
| Yuba |
130 |
302 |
132.3% |
| Colusa |
26 |
65 |
150.0% |
| Sutter |
87 |
210 |
141.4% |
| Central Valley |
9,245 |
21,946 |
137.4% |
| Mountains* |
215 |
444 |
106.5% |
| North Calif* |
725 |
1,096 |
51.2% |
| Statewide |
37,994 |
81,550 |
114.6% |
| * includes additional counties |
Source: DataQuick Information Systems
Media calls: Andrew LePage (916)456-7157 or John Karevoll (909)867-9534
Copyright 2008 DataQuick Information Systems. All rights reserved.