Tag Archives: california real estate foreclosure market

California Real Estate Foreclosure Market



By • Jul 24th, 2012 • Category: Charts

This Market Chart presents current trends in foreclosures and pre-foreclosure activity statewide.

54,615 notices of default (NODs) were recorded in California in the second quarter of 2012, down from 56,633 one year earlier. 21,851 foreclosures (marked by trustee’s deeds) were recorded in the second quarter of 2012, a drop of 49% from one year earlier. Among California’s largest counties, the greatest one-year drops in foreclosures took place in San Bernardino (-51%) Riverside (-50%), San Diego (-50%) and Contra Costa (-50%) counties. [For further details and analysis of the most recent quarter’s NOD and foreclosure numbers, click here.]


Chart last updated 7/24/12

2nd Quarter: 2012 1st Quarter: 2012 2nd Quarter: 2011
54,615 NODs
56,258 NODs
56,633 NODs
21,851 TDs
30,261 TDs
42,465 TDs

Chart last updated 7/24/12

2nd Quarter: 2012

36%
1st Quarter: 2012

42%
2nd Quarter: 2011

61%

Data courtesy of Dataquick

These charts track the number of Notices of Default (NODs) and trustee’s deeds (TDs) recorded quarterly in California from 1994 to the present, along with the estimated percentage of NODs that have actually gone to foreclosure quarterly over the last four years.

Recording an NOD is the lender’s first step in the foreclosure process; the recorded trustee’s deed is the final step, at which point the property is placed in the Multiple Listing Service (MLS) as a real estate owned property (REO). The entire process takes place over a period of approximately four to five months, although this time period has recently been extended by government interference at both state and federal levels. As a consequence of this interference (designed to postpone NOD recordings and reduce trustee’s sales and evictions) we will not know the full impact of recent NODs on the total percentage of NODs which go to a trustee’s sale (and thus become REOs) until 2013.

An NOD is typically recorded when the homeowner falls more than three months behind on mortgage payments. NODs are thus a good, although not foolproof (due to adjustable rate mortgage (ARM) originations in 2005 and 2006) indicator of the financial condition of ownership in a given regional market. As such, they give a basis for predicting the number of foreclosure sales and the size of the REO inventory to come in the following six to eight months.

Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 5707, Riverside, CA 92517.

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