Rgional default rate
During the last quarter, 6,638 homeowners in our six-county capital region, received official notices from their lenders that their mortgage was in default. A NOD (Notice of Default) is the first step in the foreclosure process. It’s going to be filed in the county’s recorder’s office when homeowners stop making payments. After a NOD is filed, the homeowner has 90 days to bring their payments current or they loose the property to a foreclosure. Most delinquent homeowners are able to cure the default if they take necessary action.
In our region during July, August and September there were 2,772 foreclosures. Sacramento County was hit pretty hard. Seventy-five percent of all defaults and foreclosures occur in Sac County. El Dorado County recorded only 4 percent of the regions defaults with 278 notices of default for the third quarter and 15 foreclosures. Placer County reported 10 percent of the defaults and foreclosures with 728 NODs and 294 foreclosures.
Most foreclosures occur in places where people don’t want to live. In Sacramento, the zip code 95832 (Meadowview in south Sacramento) ranked among the highest areas for foreclosures in the state. Lathrup’s 95330 in San Joaquin County was along side Meadowview as was the city of Parris in Riverside County.
According to DataQuick 24,200 homeowners lost their home during the third quarter and 75,000 received their notice of default. That was the highest number ever recorded. Most of the loans that went into default were purchased or refinanced in 2005 and 2006. Half of all foreclosures statewide are in the central valley or Riverside/San Bernardino counties.
It’s probably going to take some time to sell off all the foreclosures at our current sales pace. The six-county region recorded 7,791 new and resale closed home sales for the quarter along with the 6,638 notices of default.
Our real estate market is not going to improve until the number of default notices decrease. When that happens for two consecutive quarters we will be on the way to a stable market.
In our region during July, August and September there were 2,772 foreclosures. Sacramento County was hit pretty hard. Seventy-five percent of all defaults and foreclosures occur in Sac County. El Dorado County recorded only 4 percent of the regions defaults with 278 notices of default for the third quarter and 15 foreclosures. Placer County reported 10 percent of the defaults and foreclosures with 728 NODs and 294 foreclosures.
Most foreclosures occur in places where people don’t want to live. In Sacramento, the zip code 95832 (Meadowview in south Sacramento) ranked among the highest areas for foreclosures in the state. Lathrup’s 95330 in San Joaquin County was along side Meadowview as was the city of Parris in Riverside County.
According to DataQuick 24,200 homeowners lost their home during the third quarter and 75,000 received their notice of default. That was the highest number ever recorded. Most of the loans that went into default were purchased or refinanced in 2005 and 2006. Half of all foreclosures statewide are in the central valley or Riverside/San Bernardino counties.
It’s probably going to take some time to sell off all the foreclosures at our current sales pace. The six-county region recorded 7,791 new and resale closed home sales for the quarter along with the 6,638 notices of default.
Our real estate market is not going to improve until the number of default notices decrease. When that happens for two consecutive quarters we will be on the way to a stable market.
posted by Ken Calhoon at 7:17 AM
0 Comments:
Post a Comment
<< Home