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Santa Clara County Foreclosures Drop 44 Percent in 3QWednesday, November 3, 2010
The number of Santa Clara County homes on the first stage of foreclosure dropped by 44.4 percent in the third quarter of the year, compared to the same period in 2009, according to a real estate information service. Lenders sent default notices to 2,244 Santa Clara County homeowners in the third quarter, down from the previous year’s third quarter total of 4,035. While all counties in the Bay Area saw a drop in notices of default, Santa Clara County had the largest drop among the nine counties. Notices of default in neighboring San Mateo County were down 31.2 percent from the same time the previous year. Foreclosures in Santa Clara County also decreased from the same time last year. The number of trustees deeds recorded, which reflects the number of houses and condos foreclosed on, totaled 1,036 in Santa Clara County during the third quarter, down 16.2 percent from 1,237 in the third quarter of 2009. The counties of Marin, Solano, San Mateo and San Francisco saw foreclosures rise compared to same time a year ago, ranging from a significant increase of 25.5 percent in Marin, to 1.4 percent in San Mateo, and just 0.6 percent in San Francisco. Statewide, MDA DataQuick reports a total of 83,261 notices of default were recorded during the July-through-September 2010 period, up 18.9 percent from 70,051 in the prior quarter, but down 25.5 percent from 111,689 in the third quarter of 2009. The number of houses and condos foreclosed on totaled 45,377 during the third quarter down 4.8 percent from 47,669 for the prior quarter, and down 9.3 percent from 50,013 for third-quarter 2009. The all-time peak for foreclosures was 79,511 in third-quarter 2008. The effects of the current turbulence in the nation's foreclosure processes aren't yet apparent. "Over the past year, with some minor ups and downs, financial institutions and their servicers have been processing a fairly steady number of defaults each quarter. That probably has more to do with their capacity to process defaults, than with higher or lower levels of incoming distress," said John Walsh, DataQuick president. "Policies can vary on how to use the formal foreclosure process in taking homes back and reselling them. It would be nice to think that servicers are carefully following all the rules and regulations, but in the real world there are differences of interpretation, as we've seen in the news recently. It'll be interesting to see how this plays out in fourth-quarter trends," Walsh said. The spreading of mortgage defaults from lower-cost sub-markets up into more expensive neighborhoods has receded a bit, according to the report. California's high-end markets collectively saw mortgage defaults buck the market-wide trend and drop slightly quarter-to-quarter, and they fell a bit more on a year-over-year basis compared with the overall market. Also, the concentration of defaults remains much higher in the less expensive areas, according to the report. “It’s anyone’s guess how the numbers will play out at year-end,” said Jeff Bell, president of the Silicon Valley Association of REALTORS®. “Many lenders aren’t keen on loan modifications, yet some have temporarily frozen or partially suspended foreclosures, so uncertainty continues and a full market recovery stalled.” Foreclosure resales accounted for 35.5 percent of all California resale activity last quarter, down from a revised 35.8 percent the prior quarter, and down from 42.7 percent a year ago. The peak was 57.8 percent in first-quarter 2009. The DataQuick report states on primary mortgages, California homeowners were a median five months behind on their payments when the lender filed the notice of default. The borrowers owed a median $15,156 in back payments on a median $310,000 mortgage. While many of the loans that went into default during third-quarter 2010 were originated in early 2007, the median origination month for last quarter's defaulted loans was August 2006. The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley. The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics. Variations of this article have appeared in local area newspapers. For further information, please contact Rose Meily at SILVAR Public Affairs, e-mail , or phone (408) 200-0109. |
