DQNews Archived Article

California Foreclosures Up

by Real Estate Analyst John Karevoll
September, 1996

La Jolla, CA.— Foreclosure activity edged up in August as lending institutions moved to clear more delinquent mortgage loans from their books, a real estate information service reported.

Last month a total of 13,822 California homeowners were drawn into the foreclosure process. That was up 6.0 percent from 13,043 in July and up 14.9 percent from 12,033 for August last year, according to DataQuick Information Systems.

Initiated foreclosure proceedings peaked last March when lenders sent default notices to 15,473 homeowners. "Distressed properties put a lot of downward pressure on prices, although that problem is not as bad as it was a year ago. Home sales in California are now at a six-year high and these properties are being absorbed by the market at a record rate," said Donald L. Cohn, DataQuick CEO.

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

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. So far this year 110,942 California homes have gone into foreclosure, up 27.2 percent from 87,197 for the same period last year. Most of the increase can be attributed to stricter lending industry policies regarding delinquent loans. The increase is strongest in the Central Valley, especially in Sacramento County where year-to-date foreclosure activity was up 49.0 percent. San Bernardino County where foreclosure activity peaked earlier than in other areas, had the most moderate year-to-date increase at 4.1 percent. Santa Clara County, where both home sales counts and prices are way up, had a 4.2 percent year-to-date increase.

Source: DataQuick Information Systems

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

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