A real estate information service reports the number of California homes going into foreclosure dropped again during the fourth quarter of 2010 to its lowest level in more than three years. The drop could be due to shifting market conditions and evolving lender and mortgage servicer policies, the report states.
A total of 69,799 Notices of Default (NoDs) were recorded during the October-to-December period, down 16.2 percent from the prior quarter, and down 17.5 percent from fourth quarter 2009, according to DataQuick Information Systems. Last quarter's activity was the lowest since 53,943 NoDs were recorded in the second quarter of 2007.
NoDs dropped 11.7 percent in the nine-county Bay Area. They declined significantly in Santa Clara County, where lenders sent homeowners 2,325 default notices, down 17.4 percent from 2,816 in the fourth quarter of 2009.
"We don't know how much of the decline is due to less household financial distress, and how much is due to shifts in lender and servicer foreclosure policies. The level of default activity would certainly be higher if it weren't for alternative strategies such as short sales, or even lengthening grace periods," said John Walsh, DataQuick president.
On primary mortgages, California homeowners were a median six months behind on their payments when the lender filed the default notices. The borrowers owed a median $16,368 on a median $325,775 mortgage.
Trustees Deeds recorded (TDs), or the actual loss of a home to foreclosure, totaled 35,431 during the fourth quarter, down 21.9 percent from the prior quarter, and down 30.6 percent from fourth quarter 2009. The all-time peak was 79,511 in third quarter 2008. The state's all-time low was 637 in the second quarter of 2005, DataQuick reported.
During the fourth quarter of 2010, the Bay Area only had 5,764 trustees deeds recorded, down 22.8 percent from the fourth quarter of 2009. In Santa Clara County, 901 homes were lost to foreclosure, down 27.6 percent from 1,244 in the fourth quarter of 2009.
"Although foreclosures are few in the Silicon Valley region in comparison to other parts of the county, we at the Silicon Valley Association of REALTORS® continue to be concerned about their impact on families," said Gene Lentz, the local trade association's president.
"The Department of Real Estate reports foreclosure and loan modification scams continue to rise at an alarming rate," Lentz said. "We advise homeowners to protect themselves and their home by being aware of these scams. If you're falling behind on your mortgage, contact your lender right away or a legitimate housing or financial counselor to help you work through your problems."
To find a counselor, contact the U.S. Department of Housing and Urban Development (HUD) at (800) 569-4287, or call (888) 995-HOPE, the Homeowner's HOPE Hotline to reach a HUD-approved counselor, or visit NeighborWorks America's Web site at www.nw.org/network/home.asp.
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, email , or phone (408) 200-0109.