As the housing slump rolls on, DataQuick reported Monday that lenders foreclosed on 898 houses and condos in April, the highest monthly total in the company’s records going back to 1988.
After hitting a previous record in January of 802 foreclosures, the monthly total slid the next two months to 698 foreclosures in March. But April’s new record was up 29 percent from March and 284 percent from a year earlier.
A previous review of DataQuick’s numbers showed that foreclosures are rising faster now than in the slump of the early 1990s and that the density of foreclosures in Orange County also is greater now. However, banks are mostly taking possession of homes in lower-income ZIP codes in the county’s core, including areas of Santa Ana, Anaheim, and Garden Grove. Such places often have older housing stock and high concentrations of condos and apartments.
DataQuick also reported that notices of default, the first stage of foreclosure, hit a record in April, totaling 2,598 and beating January’s high of 2,353 such notices. NODs typically are filed after a homeowner misses three or more monthly payments.
Here’s a table showing NODs and foreclosures:
| Year | 2008 | 2007 | 2006 | |||
|---|---|---|---|---|---|---|
| Month | Defaults | Forec. | Defaults | Forec. | Defaults | Forec. |
| January | 2,352 | 802 | 847 | 153 | 384 | 25 |
| February | 2,254 | 732 | 811 | 164 | 316 | 14 |
| March | 2,476 | 698 | 986 | 204 | 407 | 28 |
| April | 2,598 | 898 | 855 | 234 | 374 | 22 |
| May | 1,021 | 276 | 444 | 37 | ||
| June | 1,108 | 311 | 462 | 13 | ||
| July | 1,167 | 367 | 440 | 44 | ||
| August | 1,476 | 469 | 498 | 59 | ||
| September | 1,239 | 444 | 588 | 78 | ||
| October | 1,448 | 530 | 599 | 104 | ||
| November | 933 | 364 | 665 | 102 | ||
| December | 1,895 | 644 | 688 | 121 | ||
| TOTAL | 13,786 | 4,160 | 5,865 | 647 | ||
Related Links:
- O.C. foreclosure intensity surpasses 1990s
- Pace of O.C. foreclosures triples ’90s slump
- Foreclosure rate in central O.C. 10 times that of coast
- Did the agencies rating mortgage bonds let greed trump common sense?
- O.C.’s coming wave of prime foreclosures?
- Is your neighborhood in foreclosure danger?
- Riding with a sheriff’s deputy on eviction day
YIKES! As if the rising foreclosure rates aren’t scary enough, it’s that tsunami of NOD’s exploding that would theoretically begin to hit us this summer and into the fall that is really amazing.
Talk about being swamped with Comp Killers!
“However, banks are mostly taking possession of homes in lower-income ZIP codes in the county’s core, including areas of Santa Ana, Anaheim, and Garden Grove. Such places often have older housing stock and high concentrations of condos and apartments.”
Some comp killers.
If you live there, they certainly are comp killers.
Don’t worry. It’s headed to your “nice” neighborhoods soon enough.
i don’t care if its santa ana or newport coast, it doesn’t matter where you live, every area is going to have comp killers, period!
subprime borrowers can’t afford their homes
more prime borrowers than you think cant afford their homes
its gonna get uglier, hang on for the ride!
oc agent
Lenders are now completing more foreclosures as the loss mitigation alternatives dry up with these borrowers.
Also interesting is that the three cities cited have some of the highest concentration of illegal immigrants. Maybe… just maybe… it’s not such a good idea to lend to somebody with no legal right to work in this country. Huntington Beach and Newport Beach also have “older housing stock and high concentrations of condos and apartments” but strangely not the same level of foreclosures.
Hey no vasoline … you’re absolutely correct … pre-foreclosures are sprouting up in some of The O.C. most desirable neighborhoods. Give it another 90 days or so, and Laguna Niguel, Irvine, Aliso Viejo, etc., will also be overwhelmed with Comp Killers.
Oh my god. These foreclosure numbers are horrible.
This is much worse than the last crash in the 90s and you can see in the constant decline in home prices.
why not to worry……………….buddie of mine is going thru divorce and was 9, count them, 9 months behind in corona. Bank waived all the penalties and added the 9 months to the balance, then knocked off 10% of total balance if he agreed to stay in home for minimum of 2 years.
Higher end homes are going to get hit harder than lower end - just as history tells us.
LOL - I bet he was still upside down by $200k
So basically, according to this chart, we’ve had more foreclosed properties in the SINGLE month of January than we did in the ENTIRE YEAR in 2006…
And another month or two like we’ve been having, and by May/June of this year we will surpass the NOD’s and foreclosures for the ENTIRE year 2007…
But we’re to ignore this catastrophic trend because the bulls and RE agents tell us its OK to do so…
2,500 defaults per month - and that nubmer is going to increase. unbeleivable numbers.
this is one of the best time to buy homes as the prices are at bottom.
prices are likely to rise from enf of this year
to aptrenter182 and all re agents……………………………..prices are at bottom??????????? really, they have been at the bottom since last year. I really LMAO when I read these things. The bottom will be when all the phony loans collapse and the truth comes out. I say within 12 months.
mmmkay. I’m calling Bernanke on the Bat-phone right now. We’re gonna straighten this whole mess right out. Don’t worry Pop, I’m on it.
Read my comment again and notice how I was surprised to find that. My comments are limited to what I know having worked on one of the biggest subprime mortgage portfolios in the country at the time. But if you want, go ahead and blame the credit crisis on me, I’ll take it.
observer-
That may have been true before the collapse, but I doubt that’s still the case. If just one of the multiple co-borrowers loses their job or otherwise decides to skip out, then the loan will default. To top it off, prices have plummeted the most in immigrant communities such as Santa Ana. They know it’s not worth it to struggle paying on a depreciating house.
BTW, how do you determine credit score on somebody with no social security number? Is it possible that somebody with otherwise good credit was qualifying for subprime due to a lack of SSN? That might explain the better performing loans in your immigrant portfolio.
Liar Loan,
Multiple vendors will sell you credit-like scoring models for instances like these, and you didnt need a social at the time for these programs, only a federal tax id.
Its true I was looking a this in the early stages of the subprime melt-down, at a time when slowing home appreciation was more a factor for defaults (over consumption type defaults)–the credit crisis has surely changed many of the dynamics involved–and I would be lying to say I still had the same confidence in those findings.
But I would be careful to characterize it solely or even mostly as an immigrant problem. Correlation does not equal causation–It just so happens the bottom end of housing is the most accessible to 1st generation immigrants (legal or not), but when I was looking at the data we controlled for all other factors, and the Nascar couple in Riverside was defaulting way before the multi family-spanish docs only loan in the same area. It’s mostly interesting but irrelavant now, if anything it’s only use is to dispel the notion that this fall in home prices is an immigration problem.
can someone please post some bullish coment that contradicts the reality. I want to laugh about this sad state of affairs.
When the number of REO resales (foreclosed properties subsequently sold to individual buyers) finally again exceeds the number of houses being foreclosed by lenders during the same period of time, we are likely to be in recovery.