Tag Archives: foreclosure process

San Diego foreclosures fall to 5-year low

Foreclosures in San Diego County are at their lowest levels in more than five years, while default notices have held steady, show the latest DataQuick numbers released Tuesday.

In May, 426 homes were foreclosed upon, down 51 percent from a year ago and down 19 percent from the previous month. May’s count is the lowest it’s been since February 2007, when there were 383 foreclosures in the county. Foreclosures peaked at 2,004 in July 2008.

The number of default notices, which signal the first step in the formal foreclosure process, fell 1 percent from a year ago to 1,340 but rose 1 percent from April. This leading indicator of distress reached its highest point of 3,832 in March 2009, roughly the start of the robo-signing crisis, when major lenders approved loan documents without proper review.

The county’s foreclosure and mortgage default levels tend to rise and fall in varying degrees month-to-month and year-over-year. To get a better a sense of how distress is trending, here’s a look at how current numbers compare to several averages for both indicators:

Foreclosures, May 2012

12 month average 2 year average 3 year average 5 year average 10year average 89 – present average
689 818 944 1,029 552 325

Current month vs average, foreclosures

12 month average 2 year average 3 year average 5 year average 10 year average 89 – present average
-38.2% -47.9% -54.9% -58.6% -22.8% 31.1%

Mortgage defaults, May 2012

12 month average 2 year average 3 year average 5 year average 10 year average 92 – present average
1,505 1,601 1,901 2,131 1,306 1,078

Current month vs average, defaults

12 month average 2 year average 3 year average 5 year average 10 year average 92 – present average
-11% -16.3% -29.5% -37.1% 2.6% 24.4%

With home prices and sales up, and now news of declining foreclosures, could all this signal the advent of a housing recovery for the county?…”

Read SignonSanDiego.com’s article in full on their website here: “San Diego foreclosures fall to 5-year low”.

Mortgage defaults at 6-year low

mortgage defaultsMortgage defaults, the first sign of a foreclosure, have fallen to their lowest level for an April in six years, based on the latest DataQuick numbers for San Diego County. Meanwhile, the number of completed foreclosures in the county has dropped to a five-year low for a given April.

Ever since defaults and foreclosures hit record highs between 2008 and 2009, their numbers have fluctuated dramatically without any visible pattern. So far this year, both figures appear to be less erratic and continuing a downward trend.

Notices of default, which homeowners get at the start of the foreclosure process, fell 9 percent from a year ago to 1,323. That’s the lowest April count for defaults since 2006, when there were 554, DataQuick numbers say. Defaults fell 12 percent month-to-month…

Read the rest of this article by U~T San Diego here: “Mortgage defaults at 6-year low”.

2012 could be record year for short sales

2012 is on track to become a record year for short sales, according to a report from foreclosure data aggregator RealtyTrac.

Sales of U.S. homes in the foreclosure process, typically short sales, rose 33 percent year over year, to 35,000, in January. A total of 32 states saw annual increases in short sales, and 12 states saw more short sales than REO (real estate owned) sales.

The short-sale increase comes after three years of declines following the inauguration of “a new presidential administration with a new approach to the foreclosure problem,” wrote Daren Blomquist, RealtyTrac’s vice president and author of the report.

“Short sales have long held great promise as a market-based solution to the nation’s foreclosure problem, but short sales transactions over the past three years have actually declined after peaking in the first quarter of 2009,” Blomquist said in a statement.

“January foreclosure sales numbers, along with first-quarter foreclosure activity, strongly indicate that downward trend is ending, and we believe 2012 could be a record year for short sales.”

Several states saw triple- or double-digit yearly jumps in short sales in January, including Georgia (up 113 percent), Michigan (90 percent), California (52 percent), Texas (48 percent), Arizona (44 percent), Nevada (36 percent), and Florida (20 percent).

Although REOs continue to outnumber short sales nationwide, there were only 2,600 more REO sales than short sales in January. Nearly a quarter of states had more short sales than REO sales, including Utah, California, Arizona, Florida, Indiana, Colorado, New York and New Jersey, according to the report.

Six out of the 10 states with the highest share of short sales in January were in the West.

Of the 50 largest U.S. metro areas, nine out of the 10 metros with the highest share of short sales in January were in the West, six of them in California.

Even as short sales increase, the prices buyers pay for them have decreased. In fourth-quarter 2011, a pre-foreclosure property sold for an average $184,221, down 11.3 percent from fourth-quarter 2010. In January, such a property sold for $174,120, down 10 percent year over year.

Short sales are also selling for bigger discounts when compared to the average sales prices of nondistressed homes. Short-sale buyers received an average 21 percent discount in January, up from an average discount of 17 percent the year before. RealtyTrac does not take into account property condition or size when calculating discounts for distressed properties.

Short sales in Massachusetts, Missouri and California saw the biggest discounts in January.

Short-sale timelines appear to be getting shorter. After peaking at 318 days in third-quarter 2011, the average number of days it took for a property to go from the start of the foreclosure process to its sale as a pre-foreclosure was 306 days in the first quarter, slightly down from 308 days in the fourth quarter.’

Although foreclosure starts — either default notices or scheduled foreclosure auctions, depending on the state — were down 11 percent from the previous year in March, last month also saw the third straight monthly rise in foreclosure starts.

There are nearly 3.5 million delinquent borrowers nationwide; 41 percent of those borrowers are seriously delinquent and therefore at high risk for entering the foreclosure process and becoming short sales, RealtyTrac said.

Another, bigger potential pool of short-sellers are borrowers with underwater mortgages. More than 12.5 million borrowers owe at least 25 percent more on their mortgage than their home is worth.

“Even if these homeowners aren’t struggling to make mortgage payments and therefore are at low risk for foreclosure, if they need to sell sometime in the next five years it’s likely they’ll need to sell via short sale,” the report said.

Among lenders and loan servicers, Bank of America had the highest short-sale volume in January, followed by Chase and Wells Fargo.

PNC Financial saw the biggest annual jump in short sales, followed by the Federal Housing Administration, Fannie Mae and Freddie Mac combined.

Those three government-backed entities also had the lowest average short-sale prices in January, the biggest declines in average sales price for short sales, the lowest number of average days to sale, and the biggest decrease in time to sell.

San Diego foreclosures remain at 4-year low

The Union Tribune San Diego had a great article on the state of San Diego county foreclosures–they’re currently at a 4-year low! Read the article below:

The number of San Diego County foreclosures in March stayed at its lowest point in more than four years, essentially mirroring the downward trend seen statewide, based on Tuesday’s DataQuick foreclosure report. An improving picture in the distressed market could be attributed to some pick-up in the national economy and increasing number of homeowners who short-sell their homes instead of letting them fall into foreclosure.

A little more than 500 homes fell into foreclosure last month, the lowest it’s been since November 2007, when the county recorded 478. The March total is 21 percent lower than the previous month’s and more than half of what it was a year ago.

Statewide, foreclosures in the first quarter of 2012 fell to their lowest level since the third quarter of 2007, when 24,209 trustee deeds were filed. They peaked at 79,511 in 2008’s third quarter.

Local and statewide numbers for default notices, the official start of the formal foreclosure process, were mixed in March, DataQuick numbers show.

San Diego County recorded 1,500, 17.4 percent bump from February but an 18.3 percent drop from a year ago.

The number of default…

Read the rest of this article by U~T San Diego’s Lily Leung here: “San Diego foreclosures remain at 4-year low“.

San Deigo foreclosures decreased in February

The number of San Diego County homes that were foreclosed upon in February fell to its lowest level in more than four years, while mortgage defaults remain higher than the pre-recession norm, Wednesday’s DataQuick report shows.

The county recorded 634 foreclosures in February, the lowest it’s been since November 2007. The latest tally of foreclosures is 12.7 percent lower than in January and 29.2 percent lower than a year ago. Foreclosures peaked at 2,004 in July 2008.

Notices of default — the first formal step in the foreclosure process — totaled 1,278, down 9.2 percent from January and down 6.9 percent from a year ago. Mortgage defaults peaked at 3,832 in March 2009.

Monthly and year-over-year changes in both indicators are constantly volatile because they’re heavily dependent on lender activity.

By comparing current foreclosure and mortgage-default figures to 1-year to 5-year averages, we can see decreases across the board…

Read the rest of this article by U~T San Diego here: “San Diego foreclosures fall in February.”

Foreclosure sales are up on the West Coast, except for Washington

Foreclosure sales on the West Coast started strong for the beginning of 2012, with Washington as the exception, according to ForeclosureRadar.

Arizona, California, Nevada, and Oregon are the other states included in the report – all of which saw increases in foreclosure sales to investors. Trustee sale investors pay the full amount in cash without inspections or title insurance prior to purchase.

This is the fourth largest month on record in California, and the busiest since March of 2011, stated ForeclosureRadar

California also saw a substantial increase (+14.6 percent), and the state underwent the most activity, with investors purchasing 3,964 properties for $766.2 million, according to ForeclosureRadar…

Read the rest of this article from DSNews.com here: “Foreclosure Sales Up for West Coast States Except Washington.”