O.C. foreclosures hit new record in May, break 1,000 in a month for first time
June 16th, 2008, 11:00 am · 20 Comments · posted by Mathew Padilla, Reporter
DataQuick said Monday that banks foreclosed on a record 1,131 houses and condos in Orange County in May — a new record; the first time the total topped 1,000 in a month, and 68 percent higher than the peak during the 1990s of 674 foreclosures in October 1996.
May’s total was up 26 percent from April and 310 percent from a year earlier. (To see housing sales data for last month CLICK HERE and see foreclosure slide show HERE.)
Experts say foreclosures are spiking for several reasons. Some borrowers are unable to afford their mortgages after low teaser rates end; some homeowners, especially in the mortgage industry, have lost their jobs amid the housing downturn and tepid economy; and falling home prices make it more difficult for borrowers to refinance their mortgage or sell their home if they are having trouble paying.
One positive sign, perhaps: banks filed 2,468 notices of default last month, a 5 percent drop from April. However, May’s total was still up 142 percent from a year earlier. Banks typically file an NOD after a borrower misses three or more monthly payments. The filing is the first stage of foreclosure, but not all NODs end in foreclosure.
Here’s a table with NODS and foreclosures going back to 2006:
| Year | 2008 | 2007 | 2006 | |||
|---|---|---|---|---|---|---|
| Month | Defaults | Forec. | Defaults | Forec. | Defaults | Forec. |
| January | 2,352 | 802 | 847 | 153 | 384 | 25 |
| February | 2,254 | 733 | 811 | 164 | 316 | 14 |
| March | 2,476 | 698 | 986 | 204 | 407 | 28 |
| April | 2,598 | 898 | 855 | 234 | 374 | 22 |
| May | 2,468 | 1,131 | 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 news:
- May’s median home price below $500,000, 1st time since’04
- O.C. mortgage rates spike to highest this year
- Look who’s making subprime loans now
- O.C. foreclosures rose in May, but totals differ in two reports
- Former Countrywide No. 2 sees opportunities in troubled mortgages
- O.C. mortgage delinquency rate climbs faster than state, nation
- Is this it for mortgage rates?
- Good credit, good job but still need mortgage aid? Maybe…
- Unlikely voice against mortgage bailouts
June 16th, 2008 at 11:20 am
Wait a minute….didn’t the oft-cited Steven Thomas say that things were getting BETTER??? LOL! Credibility? Um….no!
June 16th, 2008 at 12:18 pm
Anyone remember back in March when the M/M decline in F/C was being touted as evidence in this very comments section that the foreclosure peak was behind us? Oops.
The bulk of this inventory is sitting on banks’ books, not in the MLS inventory, and is biding its time until the banks are forced to liquidate. Distressed inventory + foreclosures is now, what, 70% of total inventory now?
June 16th, 2008 at 1:12 pm
Wow, so by just only May, 5 months in 2008, we already have more foreclosures than all of 2007. Yet, they keep increasing, and so does the NOD to foreclosure ratio, up to 67% from 60% of last month, and up from the 35% ratio of a year ago. LOL, more bottom calling to come.
June 16th, 2008 at 1:39 pm
Anyone see the film “End of Suburbia”?
How about “Escape from Suburbia”?
Have you read “Geography of Nowhere”?
How about “The Long Emergency”?
These foreclosures are just the beginning, so hold on!
June 16th, 2008 at 2:31 pm
Matt,
Your article didn’t list how many of those just walked away from the property. In other words (your article states, “Experts say foreclosures are spiking for several reasons” and yet you give only one reason: that homeowners are unable to make their current mortgage payments because of a payment spike, job loss, or can’t refinance), how many of these homeowners can afford the payments but are just “walking away” from the property anyway?
June 16th, 2008 at 2:48 pm
but “thoughtful” told me on Lansner’s blog that the market was turning around: she wouldn’t lie to me, would she?
June 16th, 2008 at 4:44 pm
yes , quiet fills the blog……
June 16th, 2008 at 4:57 pm
$ucker born every minute….
June 16th, 2008 at 4:59 pm
thoughtless would also claim anything from May is ‘old data’ even though we’re barely 2 weeks out.
June 16th, 2008 at 5:28 pm
What needs to be made clear here is that the May foreclosure number is generally based on NOD’s from January and February. It takes about 90 days to turn an NOD into a foreclosure. That said, note that almost 1/2 of all NOD’s from Jan/Feb were not short sale’d away, but foreclosed outright. This means that 1000 per month foreclosures will be here for some time.
June 16th, 2008 at 7:04 pm
dont forget $5 gas price that kills most American Auto makers thanks to our President ..The question is the housing price bottom yet?
June 16th, 2008 at 7:08 pm
take a look at the stock market in 2001, how many trillion $$$ has been wipe out? I am not surprised what next! housing!!!!!!! I love capitalism.
June 17th, 2008 at 2:42 am
bpsqwerty Says:
June 16th, 2008 at 4:59 pm
thoughtless would also claim anything from May is ‘old data’ even though we’re barely 2 weeks out.
You called? Okay, for the first 7, yes that is seven business days in June, there has been over a 1000 NODs, over 700 NTSs, and over 400 foreclosures. You can go tell thoughtless, well… that she is thoughtless, and that June will only get worse. Oh… and that is delayed data, not because DQ is slow, but because the county can’t keep up with all the foreclosures. The bottom is no where near here.
June 17th, 2008 at 7:09 am
That’s a percent change 455.856 % increase since 2006 defaults and
2956.757 % increase in foreclosures since 2006
June 17th, 2008 at 8:40 am
a graph produced from these numbers shows the trends to be exponential (R2 = 0.94 and 0.95) for both FC and NOD. How anyone can say we have turned the corner is just laughable.
June 18th, 2008 at 9:01 am
I believe that all of this housing dilemma stems from the promotion of fast money, increase by flippers.
And although I enjoy the shows, I have to say that the HGTV programming has played a major role here also.
As for buyers people are easily tempted to have something a little nicer, the jones syndrome.
It falls within the entitlement mentality.
And also refers to the sellers, I put this into it so therefore…..
People pushing the turn over of houses, and upping the cost every time they do.
By somehow justifying the sale price increase, thinking their up grades/asking prices equal that of the cost of living.
It is a slow process but snow balls into an economic crisis.
That of which we are in.
Then the unsavory ( not all) real estate agents, and mortgage companies have their part in it.
Agents for commission, and Mortgage companies for interest and inventory.
A house that is lived in and sold at a normal rate (people living in the home) and not using it as an income, would not increase the housing market at the rate we have seen in the last 12 years.
July 31st, 2008 at 3:04 pm
Looking for studio or one bedroom condo within 10-12 miles north of 55 freeway and Pch