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DQNews Archived Article


California Foreclosures Down

October 31, 2001

La Jolla, CA.--The number of California homes going into foreclosure continued to decline during the third quarter, although indications are that the five-year decline may be leveling off, a real estate information service reported.

Lending institutions started foreclosure proceedings on 18,673 homeowners during the July-to-September period. That was down 4.3 percent from 19,514 for the prior quarter, and down 11.1 percent from 21,006 for third-quarter 2000 (see chart), according to DataQuick Information Systems.

Last quarter's number was the lowest since DataQuick started monitoring default notices in 1992. The all-time high occurred during first-quarter 1996 when 44,665 defaults were recorded. A Notice of Default is the first step of the formal foreclosure process.

The third-quarter numbers were running about the same as the second-quarter numbers until September 11 when they dropped significantly for the next two weeks.

"A lot of processes were put on hold while the country came to grips with what happened. As things returned to business as usual, financial institutions began processing their paperwork at pretty much the same pace as before. What will probably happen is that some third-quarter foreclosure activity got nudged into fourth quarter," said Mike Ela, DataQuick's president.

Foreclosures seldom occur when a home's value is greater than the amount owed on it and the decline in foreclosure activity has closely paralleled California's rise in home values. The median price paid for a California home was $235,000 during the third quarter, up 10.8 percent from $212,000 for the same period a year ago.

DataQuick, a business unit of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

A total of 5,104 Trustees Deeds were recorded on homes last quarter. A Trustees Deed is the final step of the foreclosure process, meaning that the lending institutions took those properties back. Last quarter's number was down 27.3 percent from 7,020 a year ago and the lowest since 4,725 were recorded during fourth-quarter 1991, DataQuick reported.



Notices of Default
recorded on houses and condos
County 3Q2000 2Q2001 3Q2001 3Qs %Chg
Los Angeles 5,984 5,920 5,693 -4.9%
Orange County 953 885 830 -12.9%
San Diego 946 851 755 -20.1%
Riverside 1,570 1,408 1,544 -1.7%
San Bernardino 2,388 2,049 1,896 -20.6%
Ventura 314 329 325 3.4%
So. Calif. Total 12,154 11,442 11,043 -9.1%
San Francisco 128 105 126 -1.6%
Alameda 707 598 618 -12.6%
Contra Costa 657 634 587 -10.6%
Santa Clara 467 513 454 -2.9%
San Mateo 182 164 174 -4.3%
Marin 66 62 86 29.4%
Solano 283 287 299 5.7%
Sonoma 153 131 136 -11.2%
Napa 66 33 38 -43.3%
Bay Area Total 2,710 2,527 2,517 -7.1%
Santa Cruz 73 68 63 -14.6%
Santa Barbara 190 174 139 -26.9%
San Luis Obispo 98 95 90 -7.3%
Monterey 107 124 83 -22.4%
Coast Total 468 461 375 -19.9%
Sacramento 1,384 1,120 1,145 -17.3%
San Joaquin 617 516 625 1.4%
Placer 169 181 152 -9.7%
Kern 893 734 666 -25.4%
Fresno 1,024 1,020 861 -15.9%
Madera 122 210 114 -6.5%
Merced 191 126 181 -4.9%
Tulare 606 658 496 -18.1%
Yolo 122 102 64 -47.7%
El Dorado 65 52 81 23.3%
Stanislaus 482 366 353 -26.9%
Inland Total 5,674 5,084 4,738 -16.5%
All California 21,006 19,514 18,673 -11.1%

Source: DataQuick Information Systems

Media Inquiries: John Karevoll (909)867-9534


Copyright © 2001 DataQuick Information Systems.
All rights reserved.


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