DQNews Archived Article

California Foreclosures Down

by Real Estate Analyst John Karevoll
December, 1996

La Jolla, CA.— The number of California homeowners going into foreclosure in November inched up from year-ago levels, but dropped from the month before, a real estate information service reported.

Lending institutions started foreclosure proceedings on 12,257 homeowners in November. That was down 16.0 percent from 14,598 for October and up 1.5 percent from 12,080 for November 1995, according to DataQuick Information Systems.

November's year-over-year increase was the lowest in a year-and-a-half. Initiated foreclosure proceedings peaked last March at 15,345.

So far this year 150,037 California homeowners have received a Notice of Default, the first step of the foreclosure process. That was up 21.9 percent from 123,095 for the same period last year. Most of this year's increase came during the first four months when foreclosure activity was up over 40 percent..

"Foreclosure activity is the single most important factor keeping home prices down. While prices are flat in hard-hit Southern California, the Bay Area is now seeing prices go up around four percent. There are indications that Southern California may have seen the worst of the foreclosure problem," said Donald L. Cohn, DataQuick's CEO.

A total of 7,846 Notices of Default were recorded in Los Angeles, Ventura, Orange, San Diego, Riverside and San Bernardino counties in November. That was down 17.6 percent from 9,523 in October and down 4.4 percent from 8,206 for November a year ago. The November NOD count was the lowest since September 1995 when 7,448 notices were recorded.

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

Foreclosure activity remained flat at a moderate level in the Bay Area while it increased in the Central Valley.

Source: DataQuick Information Systems

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

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