DQNews Archived Article

California Foreclosures Up

by Real Estate Analyst John Karevoll
August, 1996

La Jolla, CA.— Foreclosure activity in California edged up in July as lenders moved to clear more of their backlog of delinquent mortgage loans, a real estate information service reported.

Lending institutions started foreclosure proceedings on 13,043 homeowners last month. That was up 11.2 percent from 11,733 in June and up 30.5 percent from 9,998 for July a year ago, according to DataQuick Information Systems.

July's figure was still well below the all-time high last March of 15,473. So far this year 97,119 California homeowners have been drawn into the foreclosure process, up 29.2 percent from 75,164 for the first seven months of last year.

"The state's recovering real estate market still has areas of distress. Many of the entry-level home markets that were especially active six years ago are problem areas today. Although the worst is behind us, we'll have significant foreclosure levels well into next year if current trends stay in place," said Donald L. Cohn, DataQuick CEO.

So far this year, foreclosure activity has increased the most in the Central Valley, while the increase is nominal along the central coast and in Santa Clara and San Bernardino counties.

Santa Clara has had high sales volume during the past year that has absorbed distressed properties. San Bernardino County experienced its foreclosure surge before many other parts of the state. The numbers include recorded Notices of Default, the first step of the formal foreclosure process. The 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.

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

Number of homes going into foreclosure

                  YTD July     YTD July      %
County                1995         1996       Chg.
                                                  

Los Angeles         23,158       31,473     35.9  
Orange County        6,693        8,926     33.4  
San Diego            5,482        7,407     35.1  
Riverside            6,850        8,261     20.6  
San Bernardino       8,058        8,439      4.7  
Ventura              1,389        1,880     35.3  
So.Calif. Total     51,630       66,386     28.6  
                                               
San Francisco          583          715     22.6  
Alameda              3,066        3,547     15.7  
Contra Costa         2,704        3,618     33.8  
Santa Clara          2,534        2,733      7.9  
San Mateo              951        1,075     13.0  
Marin                  284          353     24.0  
Solano                 936        1,302     39.1  
Sonoma                 674          937     39.0  
Napa                   140          199     42.9  
Bay Area Total      11,872       14,479     22.0  
                                               
Santa Cruz             360          387      7.5  
Santa Barbara          621          676      8.9  
San Luis Obispo        538          567      5.3  
Monterey               319          430     34.7  
Coast Total          1,839        2,060     12.0  
                                               
Sacramento           3,121        4,709     50.9  
San Joaquin          1,351        1,953     44.5  
Placer                 511          704     37.6  
Kern                 1,070        1,507     40.9  
Fresno               1,203        1,702     41.5  
Madera                 231          306     32.2  
Merced                 257          396     54.0  
Tulare                 693          890     28.4  
Yolo                   215          287     33.3  
El Dorado              235          389     65.3  
Stanislaus             935        1,352     44.6  
Inland Total         9,823       14,194     44.5  
                                               
All California      75,164       97,119     29.2 

Source: DataQuick Information Systems

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

Copyright © 1996 DataQuick Information Systems.
All rights reserved.