The Foreclosure Report

100% Loans Defaulting In Marin Co., CA

The Marin Independent Journal reports from California. "Home foreclosures in Marin County were up nearly 60 percent in the third quarter compared with the same period last year, Dataquick reported. Eighty-nine foreclosures were reported in the quarter ending Sept. 30, up 58.9 percent over last year, when there were 56."

"The foreclosure numbers were also a steep jump from the second quarter, when 58 were reported. But Marin's foreclosure picture was still rosier than most of the other eight counties in the Bay Area, where overall foreclosures surged 89.2 percent in the third quarter."

"'I'm not surprised by those numbers because of all the products that have come out - no down (payment), interest-only loans,' said Russell Colombo, chief of Bank of Marin, which does not offer residential loans. 'A lot of these people go in with the expectations of appreciation, but in Marin County that has not happened recently.'"

"According to DataQuick figures released this month, Marin's median single-family home price declined 3.3 from September 2005 to September 2006."

"'But in this type of market, with the adjustable rates out there, I'm not surprised that the foreclosures would jump,' said Kathy Schlegel, president of Marin Association of Realtors. 'And they probably will in the next quarter.'"

"'The biggest problem has been the 100-percent financing,' she added. 'They're the ones that are really the most vulnerable for the foreclosures. There's just not that amount of equity that gives them a cushion.'"

Statewide, foreclosures hit a four-year high in the third quarter, DataQuick said. Lenders sent homeowners 26,705 default notices, up 28.3 percent from the prior quarter and 111.8 percent from the third quarter of 2005.

"In Sonoma County, third-quarter foreclosures rose 83.3 percent, from 126 to 231."

"Notices of default are recorded at county recorders offices and mark the first step of the formal foreclosure process. On primary mortgages, homeowners were a median of five months behind on their payments when the lender started the default process, the research firm said."

posted by Ben Jones @ 2:42 PM