The Foreclosure Report

Foreclosures Increase Across California

The Inman News site has this report. "Foreclosure activity in California edged up in fourth-quarter 2005, according to DataQuick. Lending institutions sent 14,999 default notices to California homeowners from October to December, up 19 percent from 12,606 for the third quarter, and up 15.6 percent from 12,978 for fourth-quarter 2004."

"'Because of the rise in home values, much of that financial distress has been covered by the increasing amount of equity that people have had in their homes. That equity is now being created at a slower pace, and default activity is inevitably on the rise,' said Marshall Prentice."

"The median amount owed when the default notice was recorded was $6,862 in fourth-quarter 2005, up from $6,130 for the same period a year ago. All regions of the state saw an increase in foreclosure activity, ranging from 10.5 percent in the Bay Area to 19.6 percent in Southern California. In Southern California, the number of notices jumped from 1,123 to 1,607 (43.1 percent) in Riverside County; from 872 to 1,173 (34.5 percent) in San Diego; from 684 to 918 (34.2 percent) in Orange County."

"In Northern California, the number of notices increases from 636 to 849 (31.4 percent) in Sacramento County and from 73 to 106 (45.2 percent) in San Francisco. On a loan-by-loan basis, mortgages are least likely to go into default in Marin County. The likelihood is highest in the Central Valley and Inland Empire."

"'While foreclosure properties tugged property values down by almost 10 percent in some areas nine years ago, the effect on today's market is negligible,' DataQuick reported."

posted by Ben Jones @ 11:32 AM