There were 17,408 foreclosures in the Golden State in the second quarter — that’s the highest quarterly total since DataQuick began tracking them in 1988. It surpassed the previous high point of 15,418 foreclosures in the third quarter of 1996.
And the second-quarter figure was up 58% from the first quarter and nearly nine times greater than the second quarter of 2006.
Notices of default, the first stage of foreclosure, totaled 53,943 in the second quarter, the highest since late 1996.
And the total was up 15% from the first quarter and more than double the second quarter of 2006.
I’ll post more on foreclosures tomorrow when DataQuick releases county-by-county breakdowns.
where is Jimmy. Housing is on a downward spiral
where will this article appear in the register- front page- no way
front page business section - I doubt it but the realtors accuse
the media of negative coverage when in fact the media
has been rather quiet with this sort of disturbing news but thats
just my opinion I could be wrong
Media and Housing Industry have a very cozy relationship. Many medias closed or merged with others. It is hard to find a good reporter and it is up to us. We are about to enter the third phase and the worst has yet to come.
I guess this is the point where you can call this housing market a Disaster and not have it considered hyperbole. This is just unbelievable. It shows gross irrepsonsibility at every level.
So this housing bust is officially worse than the one in the mid 90’s.
[...] to my RSS feed. Thanks for visiting!The California foreclosure picture continues to get worse as reported by DataQuick and Matthew Padilla at the OC Register: There were 17,408 foreclosures in the Golden State in the [...]
Once again California smashes all previous records……even faster than anticipated….. and low and behold performanc in the conforming market is starting to slip? Who’d a thunk?
You didn’t have to be a scholar to see this one coming. The real question is when is someone in the media going to stop interviewing the talking heads at the top of these mortgage banks, the baffoons from the due diligence world, and the liars from Wall Street and start talking to the people in middle management and below to get the real story? Matt?
Neither the Feds or the media seem to want to go after the real story here……………….
I am not sure what everyone is so surprised about? Most industries today are like Vegas today, it’s just too bad that the feds allowed the lending industry to gamble with home mortgages!
Regardless, these ‘fog the mirror’ ARM loans over the last ten years were the biggest ’snake oil’ scheme sense fools gold was sold in the 1800’s. Anyone who bought a home ‘thinking’… “rates will never go up”, had to be the kind who already bought the Brook land Bridge.
Dataquick made the following comment:
While foreclosures tugged property values down by almost 10 percent in some areas eleven years ago, their effect in most markets today is negligible.
I think something is wrong with the foreclosure picture. Back in the 90’s, I was had a great choice in foreclosure property in high end beach cities. Now, there are very few foreclosures in the beach cities. Where are all the foreclosures in beach cities at? This foreclosure story is partly true and partly hype.
Jimmy from Dataquick is partially right. The Republicans have devauled the Dollar, which is now worthless. The last people to feel the effects of the worthless greenback are the rich who are able to have money invested in all assest classes. During this transition all other classes especially the middle class are punished with inflation.
Expect the Republican Traitors to have a very tough time in the next election. The phony numbers they produce won’t be enough to save them.
You have to look at the percentage of homes in foreclosure and not the raw total. There are far more home in California now in 2007 then there were in 1996, so while the raw total of homes in forclosure might be at an all time high the percentage of homes in trouble might not even be close.
In addition to foreclosures, does anyone tracks short sales?
(That is when the lender agrees to let the house sell for less that the loan value and let the borrower walk away with a1099.)
With California having the highest poplution by far than any other state it doesnt surprise me that the forclosure hit this point. Lenders need to help more than what they have been…Buydown rates for the borrower who where given bad loans? Forclosures cost lenders an amazing amount of money..Attorney and real estate fees and clean up fees. If a lender is is servicing that loan than they should offer to rewritre the loan which is the long run will save the lender money and help everyone ease into this housing mess.
Lenders have been helping as much as they can. They have been foregoing forclosures with short sales and reworked loans with different terms. This IS just the beginning. Interest rates have only increased 1-2 percent and quite frankly OC psychology is still bullish. That will change overnight, just ask sellers in San Diego, Corona (IE), Sacramento, even Silicon Valley. The problem lies with the fundamental economic principles. The Republican Clowns in government and at the Federal Reserve have been printing money and devaluing the currency at record speed. From 1776 to 1990 there were 2 trillion greenbacks created, from 1990 to today there were an additional 8.8 trillion greenbacks created. The inflation in hard assests like housing is the first symptom creating a hyperinflation amongst goods we need: shelter, food, transportation. The hyperinflation causes job actions: bus drivers, plant employees, police officers, supermarket employees. People realize they can’t afford anything and begin to save their money creating a massive self feeding depression. The Republicans in Newport Beach will be okay, I hope you and the rest of the middle class have been buying gold, because Republicans don’t care if your kids don’t eat.
Jimmy - You need open your eyes and your mind a little bit. In the last 30 days I found 7 properties foreclosed on in HB and one of them being a block from the beach that didn’t sell for $771k. I found 2 in Dana Point, 1 in Laguna Beach that didn’t sell for $754k, 3 in Newport Beach, 2 in San Clemente and 2 in Seal Beach. That is only one trustee source and only in the last 30 days, so there are more trustees out there and foreclosures have been happening for more than just the last 30 days. Plus I found another 64 in the cities listed above that have received the Notice of Trustee sale.
John - Sorry but there are only about 1.3 million more units in CA since 1996 according to the department of finance. Since that data includes multi-units and the historical percentage being 80% mortgage eligible by the amount of property tax bills the record high in 96 would mean 1 foreclosure for every 614 homes where as in 2007 it is 1 foreclosure for every 603 homes. But your Pollyanna arguments are always fun to point out.
The worst has yet to come. Please be careful with all the hypes from National Association of Realtors, Builders, and Media. There are more blood on street. Real Estate market in Orange County and Southern California is overdue and need a healthy correction. It is not only ARM mortgage, it will dragging all homeowners. You should sell your homes few years ago.