The housing recovery and higher home prices has certainly brought relief to many California homeowners. A real estate information service reports the number of California homeowners entering the foreclosure process reached its lowest level in eight years last quarter.
According to CoreLogic DataQuick, 16,833 Notices of Default (NoDs) were recorded during third-quarter 2014. That number was down 3.9 percent from 17,524 in the prior quarter, and down 17.1 percent from 20,314 in third-quarter 2013. A Notice of Default is recorded at a county recorder's office and marks the first step of the formal foreclosure process.
The NoD count during the July-through-September period was the lowest since fourth-quarter 2005, when 15,337 NoDs were recorded. NoDs peaked in first-quarter 2009 at 135,431.
Although 16,833 default notices were filed last quarter, they involved 16,432 homes because some borrowers were in default on multiple loans (e.g. a primary mortgage and a line of credit). On primary mortgages, homeowners were a median 12.5 months behind on their payments when the lender filed the Notice of Default. Borrowers owed a median $28,684 on a median $316,651 mortgage.
CoreLogic DataQuick indicates among the state's larger counties, loans were most likely to go into default last quarter in Tulare, Madera and Fresno counties. The probability was lowest in Marin, Santa Clara and San Mateo counties.
Lenders sent out 377 notices of default to homes and condos in Santa Clara County in the third quarter, down 10.5 percent from the previous quarter and down 17.7 percent from third-quarter 2013. In San Mateo County, lenders sent out 168 notices of default in the third quarter, down 1.2 percent from the second quarter tally and down 4.5 percent from third-quarter 2013.
"There are still few pockets in the state that are still struggling with foreclosures, but we are very fortunate in Silicon Valley that most homes are no longer underwater today," said David Tonna, president of the Silicon Valley Association of REALTORS®.
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 email or call the SILVAR office at (408) 200-0100.