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Wednesday, January 24, 2007

California Default Notices Increase

by Calculated Risk on 1/24/2007 11:47:00 AM

"We're in the midst of an adjusting market right now, and we won't know until spring or summer if this [foreclosure activity] is ominous or not,"
Marshall Prentice, DataQuick president, Jan 24, 2007.
UPDATE: Here is the DataQuick press release with some additional details: California Foreclosure Activity Jumps Again

According to DataQuick, the number of default notices jumped significantly to 37,273 in Q4 2006.

Click on graph for larger image.

This graph shows Notices of Default (NOD) by year in California since 1992.

2006 had the highest number of NODs since 1998. And it now appears 2007 will see record or near record NODs.

From David Streitfeld at the LA Times: More Californians at risk of losing homes
Default notices are the initial step in the foreclosure process. In the fourth quarter of last year, lenders issued such notices to 37,273 borrowers across the state, warning them that they were at risk of foreclosure, compared with 15,196 during the same period a year earlier, DataQuick said.

Not every notice of default leads to a foreclosure, when a property is seized and sold to pay the mortgage. But foreclosures also are on the rise. There were 6,078 in the last quarter of 2006, up from 874 a year earlier.