Sluggish home sales, falling prices and the home-buying frenzy of 2004-2005 triggered California’s highest level of mortgage default notices in more than a decade, according to DataQuick, a San Diego company that tracks real estate nationwide.
DataQuick did not show statistics for Nevada County, but several Northern California counties together showed a 432-percent rise in homes lost to foreclosure, DataQuick reported.
Those figures record the last step in the foreclosure process. Since January, lenders have issued 253 notices of default – the first step – through the Nevada County Recorder’s Office. The rate more than doubled from the previous year, when 124 defaults were issued.
Statewide, nearly 55 percent of homeowners in default are able to refinance or sell the home to pay off what they owe; that’s down from 88 percent a year ago, DataQuick reported. That “reflects the slow real estate market, as well as the number of homes bought during the height of the market with multiple-loan financing,” DataQuick reported.
Counties with earlier building booms are seeing foreclosure rates much higher than Nevada County. Yuba County foreclosures increased 2,000 percent from year to year, according to DataQuick.
Nevada County is faring better than other parts of the state because of a larger percentage of buyers who can afford a substantial downpayment, Realtors and loan officers said Tuesday.
“People who have purchased homes in Nevada County over the last couple of years are not necessarily people who have used adjustable rate mortgage products,” said Schandelle Nettles, owner and broker of Sierra Nevada Financial Home Loans.
Median price for defaulted homes: $445,500
The actual loss of a home to foreclosures statewide totaled 17,408 during the second quarter of 2007, the highest number in DataQuick’s statistics going back to 1988. Those numbers are expected to rise during the second half of this year, according to the report at http://www.dqnews.com/RRFor0707.shtm.
Many of the loans that went bad last quarter were made between July 2005 and August 2006. The median age of the loan was 16 months.
Appreciation rates for most of that period still were hitting double digits, and lenders let many households stretch their finances to the max and beyond, said Marshall Prentice, DataQuick’s president.
Across the state, homeowners were a median of five months behind on their payments when the lender started the default process. On lines of credit, homeowners were a median eight months behind on their payments, DataQuick reported.
The proportion of second-quarter foreclosures was highest in Contra Costa and most Central Valley counties. On a loan-by-loan basis, mortgages were least likely to go into default in Marin, San Francisco and San Mateo counties. The likelihood was highest in San Joaquin, Merced and Riverside counties.
The median price paid for homes that went into default last quarter was $445,500, DataQuick reported.
To contact Staff Writer Laura Brown, e-mail email@example.com or call 477-4231.
Foreclosures in California
Trustees deeds, recording the actual loss of a home to foreclosure, rose nearly 800 percent for the second quarter this year compared with the same period in 2006 – the highest level in 19 years, according to information collected by DataQuick Information Systems Inc. of San Diego.
Q2 ’06 Q2 ’07 % Change
NorCal counties 47 250 431.9%
El Dorado 4 89 2,125.0%
Placer 29 220 658.6%
Sacramento 175 1,662 849.7%
Sutter 10 57 470.0%
Yolo 1 103 10,200.0%
Yuba 4 84 2,000.0%
Bay Area counties 258 2,206 755.0%
SoCal counties 1,152 9,504 725.0%
Statewide 1,936 17,408 799.2%
– Source: DataQuick Information Systems Inc.
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