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California Mortgage Defaults increses

   
According to DataQuick Information Systems, a total of 46,760 default notices were sent to homeowners in the first three months of the year, up 148 percent from 18,856 in the first quarter of 2006.

The increased on an annual basis in the first quarter to the highest level in nearly a decade, LOS ANGELES Mortgage defaults in California spike fueled largely by people who bought a home or took out an equity loan in the past two years, a real estate researchers said, Calif. Mortgage Defaults Reach Decade High.
The firm said that the latest figures represent a 23.1 percent increase since the fourth quarter of 2006, when a revised 37,994 defaults notices were sent out statewide.
The firm also said that the most of the mortgage loans that went into default in the most recent quarter were taken out between April 2005 and May 2006.
According to the record, the last statewide peak in default notices was in the second quarter of 1997, when 47,912
"Today's activity reflects a peak in the number of home loans made back in the summer of 2005," said Marshall Prentice, DataQuick's president. "The loans being made back then were riskier because of the subprime activity, as well as higher appreciation rates."
Primarily involving riskier subprime loans and adjustable rate mortgages, in recent weeks, more than two dozen mortgage lenders have gone out of business and others have been forced into bankruptcy due to rising mortgage defaults.
The notices serve as an early indicator of possible foreclosures that the adoption of adjustable-rate mortgages as a primary loan on a home peaked at 77.8 percent in May 2005 and has declined since then, DataQuick implied. Mortgage defaults have been on the rise statewide since fall 2005, coinciding with a slowdown in sales and lagging home appreciation that began that year. It makes it harder for homeowners who fall behind on payments to sell their homes, When home appreciation slows. The first quarter of 1996 saw the most default notices in California, with 61,541.
On lines of credit, borrowers owed a median of $3,580. The median amount of primary loans in default was $331,200; the median amount homeowners fell behind was $10,784, and its age of the loans in default last quarter was 15 months, DataQuick said. The default notices concerns this were sent to Southern California addresses, with homeowners in Los Angeles County receiving the largest number. The firm said, Foreclosed number of homes last quarter was 11,033, compared with 1,223 in the first-quarter of 2006 and 6,078 in the fourth quarter of last year.

Caesar Esteban
http://floridamortgagebroker.us
  
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