by CalculatedRisk on 10/18/2006 05:51:00 PM

DataQuick reports: Steep Increase in California Foreclosure Activity

Residential foreclosure activity in California surged to its highest level in more than four years last quarter, the result of slower home sales and flattening prices, a real estate information service reported.

Lending institutions sent 26,705 default notices to homeowners in the state during the three-month period ending in September. That was up 28.3 percent from 20,812 for the prior quarter, and up 111.8 percent from 12,606 for 2005's third quarter, according to DataQuick Information Systems.

Last quarter's number was the highest since first-quarter 2002 when 30,225 default notices were sent out. Foreclosure activity hit a low during the third quarter of 2004 when 12,145 default notices were recorded. Defaults peaked in first quarter 1996 at 59,897. DataQuick's default statistics go back to 1992. The quarterly average is 32,653.

California Default Notices, Source: DataQuick
Year	Default Notices
1992	100,573
1993	121,416
1994	122,530
1995	135,713
1996	162,597
1997	141,180
1998	122,775
1999	101,053
2000	88,666
2001	81,003
2002	78,784
2003	66,127
2004	52,674
2005	54,476
2006 (through Q3)	66,185

NOTE: 2006 is through Q3. At the current pace, the number of Default Notices in 2006 will be the highest since 1999.