Tuesday, April 20, 2010

CA Defaults Drop 40.2% in 2010:QI from Last Year

"Lending institutions started formal foreclosure proceedings on fewer California homes last quarter. It is unclear how much of the drop can be attributed to shifts in market conditions, and how much is because of changing policies, a real estate information service reported.

A total of 81,054 Notices of Default were recorded at county recorder offices during the January-to-March period. That was down 4.2% from 84,568 for the prior quarter, and down 40.2% from 135,431 in first-quarter 2009, according to San Diego-based MDA DataQuick."

3 Comments:

At 4/21/2010 8:18 AM, Anonymous morganovich said...

that's the natural effect of foreclosure rates going up.

houses moving from default to foreclosure are not a positive sign for the economy or the RE market (though at least it starts to chew through the issue)

Foreclosure rates surge, biggest jump in 5 years
‘On pace to see more than 1 million bank repossessions this year’

updated 11:26 a.m. PT, Thurs., April 15, 2010

LOS ANGELES - A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.

RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.

In all, more than 900,000 households, or one in every 138 homes, received a foreclosure-related notice, RealtyTrac said. The firm based in Irvine, Calif., tracks notices for defaults, scheduled home auctions and home repossessions.

California accounted for the biggest slice overall of homes facing foreclosure — roughly 23 percent of the nation's total. One in every 62 properties received a foreclosure filing in the first quarter.

so 23% of 900k = 207k CA houses receiving foreclosure notices. a drop of 54k in the number of delinquency notices doesn't look so ho when you take into account that nearly 4 times that many houses went into foreclosure.

claiming that this is s good sign for the realty market is like claiming unemployment is down because workers have become discouraged and stopped looking for a job.

 
At 4/21/2010 9:31 AM, Blogger juandos said...

I don't think this news from California will be considered anything other than a short breather...

I was sent the following earlier this morning:

From the Business Relocation Coach: California's Hostile Business Climate -- 114 'Moving-Out-of-State' Events

From the Pew Center on Social & Dmocraphic Trends: Who Moves? Who Stays Put? Where’s Home?

From Cal Watchdog: “North Bay firefighters launched a boycott of a Napa Valley winery this weekend after its owner criticized their wages and benefits in a letter published in the St. Helena Star.” But more than a boycott was launched, as the winery owner has received veiled threats online from some public safety employees, potentially refusing to fight a fire at his home or winery, or save him from choking in a restaurant...

 
At 4/21/2010 2:08 PM, Blogger OA said...

A few months ago my realtor said the banks were slowing down foreclosures to avoid flooding the market. Short sales yield better so they're trying to speed those up and leave non-paying borrowers in houses rather than foreclose and subject them to vandalism.

Not sure how true that was as I didn't really trust her, but seems plausible. With prices coming up, they can actually end up better off by waiting.

There's almost no interest cost to cover while they wait and pretty low opportunity costs with all the excess capital they have. Might be a better risk/return sitting on them than putting it into new loans.

 

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