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Wednesday, April 14, 2010

San Diego: A "Surge" in Foreclosures

by Calculated Risk on 4/14/2010 11:39:00 AM

From Eric Wolff at the North County Times: Major lender signals surge in local foreclosures

Bank of America ... ramped up its foreclosure activity in March, sending hundreds of letters warning delinquent borrowers in the region that it could sell their homes at auction in as little as three weeks ... The bank said the increased activity was a natural consequence of borrowers running out of options.

Analysts and real estate agents said the moves ... could signal a final reckoning for homeowners who have been protected by government programs for months or even years.
The notices went to 230 homeowners in North San Diego County, a 69 percent increase from February, and to 391 owners in Southwest Riverside County, up 67 percent from February.

By comparison, in March 2009, ReconTrust sent a total of 31 such letters to both regions combined
"We have reported recently that we anticipate a rise in foreclosure activity through the coming months as homeowners are unable to qualify for loan modifications, fall out of modification programs or go into delinquency due to the ongoing stress in the economy," [Richard Simon, a Bank of America spokesman] said.
This fits with what Irvine Renter reported last month on the Irvine Housing Blog.