A record number of Orange County homeowners lost their homes to foreclosure in July, DataQuick reported today.
The number of foreclosures reached 1,351 last month, topping the previous record, set in May, by 220. It’s the third straight month that O.C. foreclosures have topped 1,000. In June, lenders foreclosed on 1,056 homes. (For a photo tour of the “The real foreclosures of Orange County” click here.)
A year ago, in July 2007, there were 367 foreclosures in Orange County.
Also, lenders mailed 2,320 notices of default — the first step in the foreclosure process — in July. That’s down from April’s peak of 2,598, but equal to the fifth highest monthly number of NODs on record for O.C.
The news of record foreclosures comes as DataQuick also reported that the average price of an O.C. home tumbled 28% last month and the number of homes sold rose for the first time in 33 months.
Today’s foreclosure numbers from DataQuick are preliminary and could be revised as late data comes in.
| 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 | 2,468 | 1,131 | 1,021 | 276 | 444 | 37 |
| June | 2,282 | 1,056 | 1,108 | 311 | 462 | 13 |
| July | 2,320 | 1,351 | 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 | 16,750 | 6,668 | 13,786 | 4,160 | 5,865 | 647 |
More from DataQuick:
More on foreclosures:
- The man who caused 10 foreclosures
- Banks offer 28% discount to O.C. foreclosure shoppers
- O.C. bank-owned properties rise 37%
- Homebuilder warns foreclosure shoppers
- O.C. early foreclosure notices drop for second month
- Anaheim company sues Ed McMahon over mortgage
- Long Beach congresswoman can get foreclosed house back
- Mapping foreclosures in O.C.
How Can You Save Your Property From Foreclosure
Mortgage insurance companies as we all know are helping banks and homeowners to avoid foreclosures.
Surprisingly as it sounds these mortgage insurance companies will even put some of their own money to help homeowners to make the payments for their homes.
1.Why do mortgage insurance companies willing to put their own money?
2.How can we know if we’re insured by these insurance companies?
3.Why these big corporations help banks and homeowners?
4.Will the insurance companies help the homeowners also if they’re not insured?
Lots of homeowners don’t have a lot of knowledge about their loans. Some people don’t even know their own Interest rate.
So I will assume that most of you out there will not understand the term pmi (private mortgage insurance).
What is pmi?
pmi is a policy which the bank act as the beneficiary and the borrower makes a monthly payment for the insurance of course.
The pmi(private mortgage insurance) protects the banks in bad times like today, when a lot of homes are foreclosing or selling through a short sale and the banks are loosing a lot of money.
When do you pay pmi?
normally if you buy a house or refinance your existing house there will be a very important issue that can also prevent you from qualifying, and that is the ltv (loan to value).
If you take a loan with more then 80% ltv (loan to value) then you will probably will pay pmi.
Some of us will remember great times that we could loan more then 80% of the value of the home but then we also had to take a second mortgage loan or an equity Line of credit loan of 10% or even 20%, but those days are long over.
Today banks will want you to put more down so you’re not going to let go from the house and also so the banks will have a pmi(private mortgage insurance)to be protected.
I know that it sounds that the insurance companies are just there to protect the banks.
That’s not true they’re helping homeowners too, as I said before that they will help you with payments and they will also partner with credit counseling agencies to help homeowners with their payments.
Insurance companies will try contacting you through phone or they will be mailing you letters to refer you to different websites so you can get an idea what to do next with your home and save your home from a foreclosure.
Mainly what you really need to do if you have any problem with your house and you’re negative with your payments first you should contact your lender.
Your lender will guide you what to do next.
Who could have ever thought it was possible to have this many foreclosures in OC month after month after month?! And with the NOD stats looking just as grim, this is a trend that continues right through the winter of 2009 at the very least.
My hunch however is that this is a trend that continues through 2012 or 2013, waxing and waning with each wave of defaulted novelty mortgages yet to come.
Investors From Europe Buy Real Estate In United States
Many investor from europe and the uk are buying real estate in the united states.
I’ve interviewed a real estate agent in california a week ago and he was telling me how much the market was bad until he started to work with investors from europe and the uk.
“They just have a lot of money” he said.
“I met them during a spring brake in europe. I said to my self there is no work anyway so I will go and travel a little bit.
I think it’s the best vacation I ever had and it’s still continuing , the only difference is that now I’m actually making money”.
Investors don’t need any green card, good credit, bad credit or visa.
They only need to put a least 35% of the purchase price as a down payment.
These investors will get a higher interest rate and if they will put 50% as a down payment they will probably get a much lower interest rate.
Today the euro is much higher then the dollar.
So if the american investors are excited about the foreclosures can you imagine the europeans?
For the europeans everything is much cheaper than for americans, because the value of the euro as oppose to the dollar.
Can a foreigner really get a loan in america?
Sure they can get a loan, just like an american investor can get a hard money loan without showing any credit information, they just need to show interest. interest for a mortgage lender is measured with money. banks or hard money lenders will loan you the money but you will have to put as a down payment a big chunk of your money. Than you will not going to loose the property you’ve purchased and get the banks in trouble.
Also there are many banks out there that are selling their Loans or notes to foreigners just because they need to take some loans off of their shelves, just the way you’re trying to avoid foreclosure or trying just to sell the house.
Banks today have to deal with so many issues like foreclosures, bankruptcies, notes and money in general.
Most banks that have loaned money to borrowers in the past 3 years are not protected or insured.
Three years ago the bank started to loan 1st and 2nd mortgages, 2nd mortgages are the cause of them not having mortgage insurance. So because they don’t have mortgage insurance they will loose their money if a foreclosure is placed.
So why did the banks offered borrowers 2nd mortgages?
Because it was easy to qualify and a lot of borrowers tried to avoid refinancing their 1st mortgage.
Banks just wanted to make money and more money and that’s what they did.
Now the banks are not willing to Loan 2nd mortgages anymore.
Read other articles I wrote to learn more about mortgage insurance.
Welcome Yanni
Another sap trying to use the blog to prop his business.
Can we get the city breakdown?
what does it matter…homes are being foreclosed on at a rate of roughly 20x that of two years ago.
the growth is exponential and the relationship is significant. R2 value >95.
Yanni, you’re cracking me up here…
Provider, I think you already know what the breakdown by city is. What does it prove? Poor areas get foreclosed on quicker than middle class and rich areas. They have less savings to fall back on.
Almost every house listed in middle class Huntington Beach (where I’m looking) is upside down right now…. many with more than 90 days on the market. These are people that have savings to hold out for awhile, but can’t afford their loan payment(s) for the long term. Many of these folks will lose $100-150k in real money once they sell, if they’re able to sell at all. This is a true act of desperation on the part of many of these sellers and it still may not be enough to avert foreclosure.
Seems like my comments get moderated when I post on Andrew’s blog items. What’s the deal?
BEND OVER AND SPREAD ‘EM WIDE….OC IS NOT NEAR A BOTTOM
Who needs a city breakdown? Foreclosures are spreading like black plague…No area is immune.
Yanni,
Europe’s now circling the toilet bowl right behind us now. So much for the rich uncle theory.
I told you so. The worst has yet to come. Save your money. Walk away as soon as you can.
Liar Loan Says:
August 18th, 2008 at 3:49 pm
Seems like my comments get moderated when I post on Andrew’s blog items. What’s the deal?
LOL… You need to stop posting as yanni raz. :-b
provider Says:
August 18th, 2008 at 2:13 pm
Can we get the city breakdown?
Be careful what you wish for. It seems that SA, ANA, and GG are some what flattening out, where as the other “better” zips are getting worse. For example, Irvine was up for both NODs and foreclosures compared to last month. So was Newport and Laguna Beach. I’m not saying it isn’t worse in the less desirable areas, but the increase in the desirable areas is concerning.
And… the way the August numbers are starting off as are really, really concerning. It is possible that August will see close to 2000 foreclosures.
As much as you think I enjoy this, I don’t take joy in how rapidly this is happening. I am a homeowner, and investment property owner after all. This decline and increase in foreclosures has hit me harder than I expected. What can I do? I need to take advantage of it any way I can, and I am doing that. You, and anyone else can too, if they have the means. I am just thankful I have the means.
Graphrix, I was asking more to estimate future inventory for an area. It’s one thing to have 100, 200, even 300 foreclosures in your market, it’s another thing entirely to have 5,000.
“This record increase in local foreclosures is a personal tragedy for many families. As we see data like this, it’s important to keep in mind that there are real people behind these numbers ― fathers, mothers, children ― who are suffering financially and in many other ways. Much of the problem has resulted from a lack of clarity in real estate information. Realtor.com is now making a concerted effort to make real estate transactions more transparent to enable responsible adults to have all the information they need to make sound financial decisions.”
yanni raz
Dude light up a crack pipe for me too!
Euro down 5% so OC home price just went up 5%!
EU Peeps prefer to buy in Spain where the RE prices are spiraling downward out of control and 50% of RE agents got cut in the last year.
EU just entering recession and rising unemployment.
I was just in Paris gas is $10/Gallon diesel even higher.
EU Peeps know the price may be low today but on a 30 year loan the strengthening dollar may increase the long-term price by 30%.
Hell 80% of Germans rent in there own country why would they buy here?
Yes, I am just bitter you have Mirthala Salinas!
Don’t try and play the Euro card here. Thirty years ago you trick Americans with EU BS but not today.
If you want publicity just post hey everyone I am with Mirthala Salinas! Much more interesting!
Yes, David Claus lets ask Matt to do one profile per week interviewing a family in forclosure and add some flesh and blood to the numbers we see here.
How about it Matt? I’ll bet you (meaning the OCR) are too chicken to do it! Well…Chicken I challenge you? (Just joking about being Chicken)
Euro down 5% so OC home price just went up 5%!
EU Peeps prefer to buy in Spain where the RE prices are spiraling downward out of control and 50% of RE agents got cut in the last year.
EU just entering recession and rising unemployment.
I was just in Paris gas is $10/Gallon diesel even higher.
EU Peeps know the price may be low today but on a 30 year loan the strengthening dollar may increase the long-term price by 30%.
Hell 80% of Germans rent in there own country why would they buy here?
Don’t try and play the Euro card here. Thirty years ago you trick Americans with EU BS but not today.
If you want publicity just post hey everyone I am with Mirthala Salinas! Much more interesting!
yanni raz
Dude light up a crack pipe for me too!
Euro down 5% so OC home price just went up 5%!
EU Peeps prefer to buy in Spain where the RE prices are spiraling downward out of control and 50% of RE agents got cut in the last year.
EU just entering recession and rising unemployment.
I was just in Paris gas is $10/Gallon diesel even higher.
EU Peeps know the price may be low today but on a 30 year loan the strengthening dollar may increase the long-term price by 30%.
Heck 80% of Germans rent in there own country why would they buy here?
Yes, I am just bitter you have Mirthala Salinas!
Don’t try and play the Euro card here. Thirty years ago you trick Americans with EU BS but not today.
If you want publicity just post hey everyone I am with Mirthala Salinas! Much more interesting!
Well the numbers are out and 2000 homes went back to the bank in august in the OC. RIverside over 5800 forclosed. Wow and the NOD are still very high so more record breaking numbers to come. Terrible times we are in.
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Loan Modification Made Simple, LLC