DQNews Archived Article

Foreclosures up in 95

by Real Estate Analyst John Karevoll
January, 1996

La Jolla, CA.— Foreclosure activity in California increased again last year, a grim reminder of the lingering effect that price declines and lost equity have had on the real estate market, a real estate information service reported. Lenders started foreclosure proceedings on a total of 135,759 homeowners in 1995. That was up 10.8 percent from 122,530 the year before, and was the highest year on record, DataQuick Information Systems reported.

With a year-to-year increase of 26.5 percent, the rise in foreclosure proceedings was most noticable in the Central Valley, while activity was up a 'modest' 8.1 percent in Southern California. "Southern California was the region first hit by the foreclosure wave. Now other parts of the state are experiencing what Southern California got hit with a couple of years ago," said Mike Ela, DataQuick president. "Price declines have leveled off and fewer homeowners today are entering that 'danger zone' where they owe more on their property than the property is worth. But it will take a while for the market to get back into balance," Ela said.

Home values in California have declined 17 percent during the past six years, with Southern California being hit the hardest, DataQuick reported. Riverside and San Bernardino counties have the highest foreclosure rates when looking at the ratio of foreclosure proceedings to loan originations. Default rates in those counties are twice as high as for the rest of the state. Marin County has the lowest default rate in California, Dataquick reported.

DataQuick monitors real estate purchasing, financing and foreclosure activity nationwide, and provides information to consumers, lending institutions, title companies and industry analysts. Homeowners are generally 8-10 months behind on their mortgage payments when lenders start the foreclosure process. It can take as little as four months to complete the process, although it often takes much longer. While many homeowners do bring their mortgage payments current to get out of the foreclosure process and keep their home, many give their property up by selling it or deeding it back to the lender before the process goes any further, Dataquick reported.

Number of Notices of Default recorded on houses and condos

County	All 94	All 95	% Chg
Los Angeles	39,754	42,497	6.9
Orange County	11,331	12,257	8.2
San Diego	9,048	10,004	10.6
Riverside	10,867	12,215	12.4
San Bernardino	12,524	13,626	8.8
Ventura	2,585	2,492	-3.6
So.Calif. Total	86,107	93,092	8.1
San Francisco	1,035	1,041	0.6
Alameda	4,915	5,563	13.2
Contra Costa	4,056	4,928	21.5
Santa Clara	4,671	4,513	-3.4
San Mateo	1,580	1,773	12.2
Marin	544	561	3.2
Solano	1,448	1,683	16.2
Sonoma	961	1,190	23.8
Napa	195	253	29.5
Bay Area Total	19,405	21,504	10.8
Santa Cruz	570	561	-1.6
Santa Barbara	862	1,097	27.3
San Luis Obispo	919	976	6.2
Monterey	517	632	22.1
Coast Total	2,868	3,266	13.9
Sacramento	4,415	5,745	30.1
San Joaquin	1,853	2,472	33.4
Placer	816	957	17.2
Kern	1,507	1,911	26.8
Fresno	1,863	2,231	19.8
Madera	303	388	28.1
Merced	381	461	20.9
Tulare	725	1,177	62.2
Yolo	320	387	20.7
El Dorado	414	486	17.5
Stanislaus	1,553	1,682	8.3
Inland Total	14,150	17,897	26.5
All California	122,530	135,759	10.8

Source: DataQuick Information Systems

For more information call John Karevoll (909)867-9534

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