Calif. logs record 24,209 foreclosures in Q3

[skeptic_IHB]

From our buddy Matt Padilla at the OC Register ...

http://mortgage.freedomblogging.com/2007/10/26/calif-logs-record-24209-foreclosures-in-q3/#more-581

There are some incredible numbers in here:

Banks foreclosed on 24,209 houses and condos in California in the third quarter, up 38.7 percent from the second quarter and a 604.8 percent increase from a year ago, reports DataQuick.

It’s the highest total in the company’s database, which goes back to 1988.

During the same period, banks filed 72,571 notices of default, surpassing for the first time the 1996 first-quarter peak of 61,541. Banks typically file a NOD after a borrower misses three or more monthly payments.

DataQuick estimates that 54.1 percent of defaulted loans statewide are ending in foreclosure, up from 19.1 percent a year ago.

DataQuick’s president, in a statement: "The issue is whether the real estate market and the economy will digest these over the next year or two, or if housing market distress will bring the economy to its knees.

As for the good ole OC: "In Orange County, banks filed 3,882 notices of default in the three months ended Sept. 30, up 158.8 percent from a year ago."

 

[graphrix_IHB]

Here was my response in the foreclosure thread:

The foreclosures shattered the record of Q3 1996. DQ only uses owner occupied homes and if you figure 61% of the housing stock is owner occupied that is 1 foreclosure for every 331 homes when in 96 it was 1 for every 467 homes.

Huh I guess it isn't just about the jobs is it?

As for OC it wasn't that bad, yet. Q3 93, 94, 95, 96 and 97 were worse but with the high NOD to foreclosure ratio Q4 is on pace to break a record.

October is already up on a per day basis for NODs and trustee sales.

 

[IrvineRenter_IHB]

The really scary part to me is that we are just at the beginning of this process. The massive wave of loan resets which will cause the majority of foreclosures hasn't happened yet. All signs are the foreclosures are not just increasing, but increasing at an increasing rate. We won't have any reasonable estimate of the top until the rate of increase stops increasing. At that point, the total will probably still double, so IMO we are less than half way to the top of the foreclosure mountain, and we have already broken previous records. Amazing.

 

[graphrix_IHB]

YTD foreclosures in OC have increased 220.6% or by 24.5% per month. It really is a dramatic increase.

 

[lawyerliz_IHB]

Gosh.