The number of mortgage defaults in San Diego County has fallen to a six-year low, based on a report Wednesday from DataQuick. Foreclosures in the county also are declining.
The rising presence of short sales — which help homeowners who can’t afford their mortgages sell their own for less than what they owe if the lender says yes — continues to be a key force behind falling mortgage defaults and foreclosures. The share of short sales now makes up a larger percentage of the county’s housing market compared with foreclosed homes that have been resold, a milestone reached this year.
“During the past year, we've seen short sales overtake the foreclosure process as the procedure of choice to deal with homeowner distress,” DataQuick President John Walsh said in the company’s foreclosure report.
In September, San Diego County recorded 1,050 notices of default, which signals the start of a foreclosure. That’s the lowest level since the 1,042 filed in November 2006, nearly six years ago. September’s tally is almost 14 percent lower than August’s and nearly 38 percent lower than what was recorded the same month a year ago.
Here’s another way to look at declining default figures: There were 3,727 notice of default filings in the third quarter, from July to September. That’s the lowest level for any quarter since the fourth quarter of 2006.
There were 497 completed foreclosures in September, down 2 percent from August and down 40 percent from a year ago. The number of foreclosures in the county has long been erratic. But it has remained in the 400 to 500 range during the past seven months.
Although the foreclosure count is still higher than the historical average of 326, it is a far cry from the peak of 2,004 reached in July 2008.
Levels of housing distress also appear to be waning throughout Southern California. Mortgage defaults fell to their lowest point since the first quarter of 2007, DataQuick figures show. Southern California foreclosures ticked up almost 7 percent from the second quarter to the third quarter. But it’s important to note that the foreclosures in the second quarter fell to their lowest point since the second quarter of 2007.
The report on declining foreclosures comes after months of encouraging housing news. Prices are on the rise; sales continued to stay hot beyond spring and summer, the typical homebuying seasons; and homebuilder sentiment has reached a six-year high.
Written by
Lily Leung
Here’s another way to look at declining default figures: There were 3,727 notice of default filings in the third quarter, from July to September. That’s the lowest level for any quarter since the fourth quarter of 2006.
There were 497 completed foreclosures in September, down 2 percent from August and down 40 percent from a year ago. The number of foreclosures in the county has long been erratic. But it has remained in the 400 to 500 range during the past seven months.
Although the foreclosure count is still higher than the historical average of 326, it is a far cry from the peak of 2,004 reached in July 2008.
Levels of housing distress also appear to be waning throughout Southern California. Mortgage defaults fell to their lowest point since the first quarter of 2007, DataQuick figures show. Southern California foreclosures ticked up almost 7 percent from the second quarter to the third quarter. But it’s important to note that the foreclosures in the second quarter fell to their lowest point since the second quarter of 2007.
The report on declining foreclosures comes after months of encouraging housing news. Prices are on the rise; sales continued to stay hot beyond spring and summer, the typical homebuying seasons; and homebuilder sentiment has reached a six-year high.
Written by
Lily Leung
