The Foreclosure Report

2,000 Defaults Per Quarter In San Diego: Dataquick

The Union Tribune reports on foreclosure expectations in San Diego. "San Diego County mortgage default notices rose more than 34 percent to 1,173 in the final quarter of 2005 compared to a year earlier, and are likely to double in the near future, according to DataQuick. Last year, only 212 homes were foreclosed on in the county – a fraction of the thousands lost annually in the mid-1990s. At that time, as many as 20 percent of defaults did lead to foreclosures, records show."

"In other areas, fourth quarter default notices rose by 43.1 percent in Riverside County; 34.2 percent in Orange County; and 10.7 percent in Los Angeles County. The San Francisco Bay area increase was 10.5 percent and Central Valley counties were up 26 percent. So far, default notifications and foreclosures have not occurred due to problems with risky loans that involved low down payments and interest-only payments."

"'Everybody thinks that will happen, but it hasn't happened yet,' Dataquick's John Karevoll said."

"But he said as the real estate market settles down to a more normal pace and prices do not rise enough to permit early refinancing, defaults and foreclosures will inevitably rise. He said default notices locally will likely number 2,000 per quarter this year or next."

posted by Ben Jones @ 7:23 AM