The number of financially distressed California homeowners declined again last quarter, and are a result of policy made by mortgage lenders, a real estate information service reported.
A total of 68,239 Notices of Default (NoDs) were recorded during the first quarter of this year down 2.2 percent from the prior quarter, and down 15.8 percent from first-quarter 2010, according to DataQuick Information Systems. Last quarter's activity was the lowest since 53,493 NoDs were recorded in the second quarter of 2007.
Notices of Default mark the first step of the formal foreclosure process. DataQuick noted mortgages were least likely to go into default in San Francisco, Marin and San Mateo counties. The probability was highest in Tulare, Madera and San Joaquin counties.
Trustees Deeds recorded (TDs), or the actual loss of a home to foreclosure, totaled 43,052 during the first quarter, up 21.5 percent from 35,431 for the prior quarter, and up 0.5 percent from 42,857 for first-quarter 2010. The all-time peak was 79,511 in third-quarter 2008.
In Santa Clara County, DataQuick reports there were 2,253 notices of default recorded in the first quarter of this year, down 15.2 percent from the same period last year. There was also a 10.9 percent drop in homes lost to foreclosure, with 952 trustees deeds recorded last quarter, down from 1,069 recorded in the first quarter of 2010.
"Distressed properties could be part of the real estate landscape for a few more years," said Genre Lentz, president of the Silicon Valley Association of REALTORS®. "While we have some distressed properties in our districts, the concentration of defaults and foreclosures continue to be higher in low-cost areas."
According to the DataQuick report, foreclosure resales accounted for almost 40 percent of all of the state's resale activity last quarter. It peaked at 57.8 percent in the first quarter of 2009. Short sales made up an estimated 18.2 percent of statewide resale activity last quarter, up from 17.7 percent a year ago.
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.
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