Orange County homeowners lost their homes to the bank in higher numbers in July and received more tardy payment notices on their mortgages, reports DataQuick.
In fact, the 1,709 foreclosures reported so far in 2007 top the total 1,664 foreclosures during the housing boom years of 2002 to 2006, when rising home prices helped owners avoid losing their properties. (Hat tip to Jonathan Lansner who crunched the numbers and has more DataQuick facts HERE.)
Banks sent out 1,167 notices of default last month, up 5 percent from June and 165 percent from a year ago. Banks typically send out default notices when a borrower misses three or more monthly payments.
Lenders foreclosed on 367 homes in July, up 18 percent from June and 734 percent from a year ago.
Here’s a table comparing this year to last year:
| Year | 2007 | 2006 | ||
|---|---|---|---|---|
| MONTH | DEFAULTS | FOREC. | DEFAULTS | FOREC. |
| January | 847 | 153 | 384 | 25 |
| February | 811 | 164 | 316 | 14 |
| March | 986 | 204 | 407 | 28 |
| April | 855 | 234 | 374 | 22 |
| May | 1,021 | 276 | 444 | 37 |
| June | 1,108 | 311 | 462 | 13 |
| July | 1,167 | 367 | 440 | 44 |
| August | 498 | 59 | ||
| September | 588 | 78 | ||
| October | 599 | 104 | ||
| November | 665 | 102 | ||
| December | 688 | 121 | ||
| TOTALS | 6,795 | 1,709 | 5,865 | 647 |
The ratio of foreclosures to defaults is also increasing. Last July foreclosures were 10% of defaults. This July it is 31.4%. If you look at every month there is a steady increase.
Matt,
County records show 473 trustee deeds for July. Do you know why DQs numbers are lower? Is it because they only count the trustee deeds that go back to the bank and not the actual sales? If this is the case then 106 people still loast their homes just not to the bank. Or is it because the county has trustee deeds for transactions other residential real estate?
Per the DQ numbers the August 2006 through January 2007 NODs equal a 40% conversion ratio to the foreclosures for the last 6 months. If that ratio holds the next 6 months will bring another 2380 foreclosures.
By the way trading was halted on Thornburg Mortgage today due to them having problems funding their loans.
How about the IMPAC news?
sunsetbeachguy,
Let’s stay on topic. But yes I’m reading the 10Q now. The biggest details, that the company lost $150 million and isn’t doing Alt-A loans these days, we already knew. But there are some interesting things in there. Have you read it yet?
-Matt
I’m the building super of a small condo complex. 2 of our units are subprime foreclosures. One is selling the other is just waiting it out. Both behind in association dues. My neighborhood is peppered with subprime foreclosures as well. Several of my friends decided against renting one of the condo units to raise money to buy one of these foreclosures in my complex.
This is only the tip of the iceburg. How do you think all these foreclores
are going to affect the home values in the neighborhoods the are in?
everyone listed at $200-$300K and more along with the price they eventually sell for along with the time it takes to sell them are driving down the prices of all the homes in the area making it impossible for anyone to refi out of their adjustable rate mortgages. Great for buyers, terrible for sellers and homeowners. This is the price OC is paying for all the false appreciation realized since 2002. Wall street must come out with new products which will be very, very expensive to help ride out the bubble explosion. Notice I said EXPLOSION, not bursting as it is EXPLODING right before our eyes
Lou Pacific
Real Estate and Mortgage Consultant
Serving OC for 30 Years
Sorry, in my post above I meant $200-$300 K below comps, list prices and sales. I got carried away. Thanks.
Lou Pacific
Lou,
How long would you suggest a 1st time home buyer in OC to wait for prices to become much more realistic?
Wow, anyone seen Countrywide (CFC). It was floating in the mid to high thirties during the days of the New Century debacle. But, it’s down to 24.75 today. Seeing the Angelo Morillo, the head of CFC, continues to dump shares like they were going out of style, it might be a good time to short CFC. Looks like the credit bubble may hurt Alt-A, etc. afterall.