DQNews Archived Article

California Foreclosures Experience Slight Decline

by Real Estate Analyst John Karevoll
May, 1996

La Jolla, CA.— The number of California homeowners who were drawn into the foreclosure process declined from March to April, but is still well ahead of year-ago levels, a real estate information service reported.

Lending institutions recorded 14,540 Notices of Default on houses and condos last month. That was down 6.0 percent from 15,473 in March and up 46.6 percent from 9,918 for April last year, according to DataQuick Information Systems.

A Notice of Default (NOD) is the first step of the formal foreclosure process. The March number was an all-time high. So far this year 59,225 NODs have been recorded, up 38.3 percent from 42,831 for the first four months of last year (see chart). "Lenders tightened up their policies on delinquent mortgages a few months ago. Most of the increase is due to the stricter policies. We should see foreclosure activity level off somewhat between now and this fall, but the problem will certainly be with us well into next year," said Donald L. Cohn, DataQuick CEO.

While Southern California still has the highest foreclosure level in absolute numbers, the Central Valley had the strongest year-over-year increase while the Bay Area had the most moderate increase.

The foreclosure process can take four months or more, and many homeowners either bring their mortgage payments current, deed the property to the lender, or sell their home and pay the mortgage off before the foreclosure process is completed. Foreclosure policies vary from lending institution to lending institution. Home Savings and Great Western, for example, currently let homeowners get 3-4 months behind on their mortgage payments before recording an NOD. Norwest Mortgage and Prudential Home Loan wait 7-8 months. The lag times are not strictly comparable because of other fact ors such as the age, size and type of home loan that play an important role in mortgage delinquency policies.

DataQuick monitors real estate activity nationwide, and provides information to consumers, lending institutions, title companies and industry analysts.

Number of Notices of Default recorded on houses and condos January-April

County	YTD 95	YTD 96	% Chg
Los Angeles	13,264	19,080	43.8 pct.
Orange County	3,737	5,831	56.0 pct.
San Diego	3,083	4,621	49.9 pct.
Riverside	3,887	5,013	29.0 pct.
San Bernardino	4,554	4,964	9.0 pct.
Ventura	792	1,108	39.9 pct.
So.Calif. Total	29,318	40,617	38.5 pct.
San Francisco	348	462	32.6 pct.
Alameda	1,811	2,215	22.3 pct.
Contra Costa	1,508	2,218	47.1 pct.
Santa Clara	1,487	1,665	12.0 pct.
San Mateo	553	696	25.9 pct.
Marin	175	207	17.8 pct.
Solano	521	812	55.7 pct.
Sonoma	340	552	62.1 pct.
Napa	82	131	59.5 pct.
Bay Area Total	6,826	8,957	31.2 pct.
Santa Cruz	211	253	19.5 pct.
Santa Barbara	362	452	24.9 pct.
San Luis Obispo	324	383	18.4 pct.
Monterey	190	290	52.4 pct.
Coast Total	1,087	1,377	26.7 pct.
Sacramento	1,788	2,798	56.5 pct.
San Joaquin	738	1,212	64.4 pct.
Placer	300	422	40.6 pct.
Kern	627	861	37.3 pct.
Fresno	649	965	48.6 pct.
Madera	138	173	25.0 pct.
Merced	139	189	36.0 pct.
Tulare	384	506	31.9 pct.
Yolo	135	177	30.6 pct.
El Dorado	124	236	90.1 pct.
Stanislaus	578	736	27.4 pct.
Inland Total	5,600	8,275	47.8 pct.
All California	42,831	59,225	38.3 pct.

Source: DataQuick Information Systems

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

Copyright © 1996 DataQuick Information Systems.
All rights reserved.

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