Downward trend continues for foreclosures, too
Mortgage defaults, the first sign of a foreclosure, have fallen to their lowest level for an April in six years, based on the latest data for San Diego County from housing tracker DataQuick. 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 are 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.
Descanso, Bonsall, northeast Chula Vista, Ramona and Logan Heights had the highest number of defaults per 1,000 homes last month.
April foreclosures rose 5 percent from March to 528 but were down 44 percent from a year ago. Last month, Campo, Imperial Beach, Bonsall, Mission Valley and Alpine had the most foreclosures per 1,000 homes.
What could be pushing distress sales downward?
• Short sales remain steady. In April, an estimated 21 percent of total resales were short sales, down from 22 percent in March but up from 19.3 percent a year ago.
• Mortgage delinquencies that have not resulted in foreclosure fell almost 11 percent nationwide, according to LPS, which provides monthly mortgage data.
• States, including California, reached settlements with the nation’s biggest banks over past foreclosure abuses. Banks promised to ramp up different forms of homeowner aid, including principal reductions, loan refinances, restitution and the chance at short sales.
• Keep Your Home California, a $2 billion statewide effort to help troubled homeowners, has been in place for more than a year. More than 11,000 residents in San Diego County were helped or in the process of being helped at the start of this year.
Written by
Lily Leung
