DQNews Archived Article

California Foreclosures

by Real Estate Analyst John Karevoll
January, 1997

La Jolla, CA.— While still a significant problem, there are indications that foreclosure activity in California is leveling off and may be starting to recede, although trends vary widely from region to region, a real estate information service reported.

Lenders started foreclosure proceedings on 39,495 California homeowners during last year's fourth quarter. That was up 1.0 percent from 39,106 for the third quarter and up 4.9 percent from 37,648 for 1995's fourth quarter (see chart), according to DataQuick Information Systems.

The quarterly numbers peaked at 44,686 during last year's first quarter when lending institutions implemented stricter policies in their handling of mortgage delinquencies.

Recorded Notices of Default on residential property in California:

     1Q94     31,644
     2Q94     31,380
     3Q94     30,082
     4Q94     29,424
     1Q95     32,913
     2Q95     32,253
     3Q95     32,945
     4Q95     37,648
     1Q96     44,686
     2Q96     39,391
     3Q96     39,106
     4Q96     39,495

"The real estate market has been one of the last parts of California's economy to come back. Foreclosure activity itself is a lagging indicator and we're looking at two or three year-old distress here. With the current increase in home sales, these foreclosure properties will gradually become a smaller part of the market and will put less of a drag on home prices," said Mike Ela, DataQuick president.

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

While foreclosure activity is still on the rise in the Central Valley, it declined significantly last quarter in several bellwether counties. San Diego County experienced a 15.4 percent year-over-year decline, in Santa Clara County it was down 18.1 percent and in Orange County foreclosure activity was down 19.8 percent.

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534

Copyright © 1997 DataQuick Information Systems.
All rights reserved.

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