Legal Loan Relief
msgbartop
California Homeowners Can Stop Foreclosure with Loan Modifications, Forensic Loan Audits and Negotiated Mortgage Loan Modification Terms.
msgbarbottom

01 Feb 10 San Diego Home Foreclosures Rise

DataQuick reported recently that home foreclosures in San Diego County surged last month, even as default notices dropped to their lowest level in more than a year. Analysts read those contradictory signs as further evidence that the local market might be stabilizing, since foreclosures pave the way for purchases by financially strong buyers. Fewer defaults mean either a decline in distressed owners or greater action by mortgage lenders to offer loan modifications or refinance mortgages to prevent a foreclosure. But they said other factors, such as rising delinquency levels, higher interest rates expected this spring and continuing high unemployment, point to uncertainty in housing for the foreseeable future.

DataQuick reported that home foreclosures totaled 1,515 in December, up 41.9% from November and up 20.9% from a year earlier. It was the biggest stack of foreclosures since June’s 1,630. Meanwhile, notices of default, the first legal action on the road to foreclosure, dipped 11.5 % from November’s 2,122 to December’s 1,878, the smallest figure since November 2008. It was down 38.5 % year over year. To real estate agents hungry for inventory of low-cost foreclosures to sell to bargain hunters, the upsurge in foreclosures promises to refill empty lists of homes for sale, although agents have complained in recent months that banks aren’t moving quickly to list those properties as a California short sales possibly increasing their bottom line..

On the default side, the continuing decline reflects the pressure being placed on lenders to work with troubled owners by modifying loans to make them more affordable, at least on a short-term basis, or allow properties to be sold as short sales — sold for less than the outstanding mortgage balance. “Clearly, many lenders and (loan) servicers have concluded that the traditional foreclosure process isn’t necessarily the best way to process market distress,” DataQuick President John Walsh said.

DataQuick analyst Andrew LePage said San Diego had the state’s highest large-county foreclosure spike in December. “It’s a mystery,” he said of the increase. Home foreclosures were up only 19 % in the six-county Southern California region. Many analysts warned against extrapolating from the latest data to assume that widespread distress on the wane. “Because the economy is no better and values have not come back significantly, there’s pressure on banks to postpone notices of default in an effort to seek alternatives,” said Mark Goldman, an adjunct professor of real estate at San Diego State University. He said San Diego might be nearing a “rough landing” and some price increases in certain areas. But the high-end part of the market still appears weak.

  • Share/Bookmark


Leave a Comment