California Mortgage Defaults Hit 3-year High


Visitors: 111

Mortgage defaults in California are at a three-year high, according to a report released on Wednesday.

Defaults were up more than 67% in the second quarter of 2006 when compared to the second quarter of 2005. There were over 20,000 default notices mailed to homeowners between April and June, a 10.5% increase over the first three months of the year, according to a DataQuick Information Systems report.

Santa Clara County led the state with 530 notices of default in the quarter. There was a 14.5% increase from the same quarter one year earlier.

San Mateo County had 222 notices, an increase of 51% for the year, while Montery County saw a 62% increase, with 128 notices. Santa Cruz County had 73 - the same amount as last year.

In total, 23 counties posted an increase of over 50% in the number of default notices for the second quarter. Riverside, Sacramento, Placer, Stanislaus and Sutter counties saw their notices more than double.

Defaults remain below historically normal levels. On average, lenders have filed 32,762 notices of default in the state for each quarter over the past 14 years. The first quarter total of 20,752 was the highest since the first quarter of 2003.

"This is an important trend to watch, but it doesn't strike us as ominous, " said Marshall Prentice, DataQuick's president. “The increase was a statistical certainty because the number of defaults had fallen to such extreme lows. We would have to see defaults roughly double from today's level before they would begin to impact home values. "

There are a variety of factors that contribute to higher default levels, including the amount of equity in homes, the types of mortgages in place and how long the mortgage has been held.

"We hear a lot of talk about rising payments on adjustable-rate loans triggering borrower distress. While there's no doubt some of that is going on, as far as we can tell the spike in defaults is mainly the result of slowing price appreciation. It makes it harder for people behind on their mortgage to sell their homes and pay off the lender. "

DataQuick is a subsidiary of MacDonald Dettwiler and Associates. The firm monitors real estate activity nationwide.

Martin Lukac represents and , a finance web-company specializing in real estate and mortgage rates. We specialize in daily updates, mortgage news, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!


Article Source:

Rate this Article: 
Hit the High Road with Louis Vuitton Luggage
Rated 4 / 5
based on 5 votes

Related Articles:

Mortgage Refinancing - Avoiding the High Cost of 30 Year Mortgage Loans

by: Louie Latour (December 28, 2006) 
(Real Estate)

California Mortgage Refinance: Find the Best Mortgage Loan When Refinancing in ..

by: Louie Latour (October 04, 2006) 
(Real Estate)

Bend Oregon Mortgage Defaults Skyrocket

by: Jimmy D Johnson (July 15, 2008) 
(Real Estate)

California Mortgage - What to Expect When Buying a Home in California

by: Jessica Elliott (August 08, 2006) 
(Real Estate)

Sand UGG Style-A Real Hit This Year

by: Angel Amenea (August 16, 2010) 
(Shopping and Product Reviews)

How Does A 30 Year Mortgage Compare With A 50 Year Mortgage?

by: Ben Afzal (October 11, 2006) 
(Real Estate)

Mortgage Sales Hit Problems

by: Richard Green (July 04, 2005) 
(Finance/Mortgage Refinance)

Are Mortgage Acceleration Software Programs the Fastest Way to Pay Off a 30 ..

by: David Haslett (November 05, 2008) 
(Finance/Mortgage Refinance)

How to Setup Your Mortgage Business Be Ready For the Next Mortgage Refinance ..

by: Ken Block (July 22, 2008) 
(Finance/Mortgage Refinance)

Hit the High Road with Louis Vuitton Luggage

by: Tommy Martin (August 09, 2010) 
(Shopping and Product Reviews/Fashion Style)