California Default Notices Surged From January To March

Posted by Orb Staff on April 24, 2009 No Comments
Categories : Mortgage Servicing

anuary to March, a record number of default notices were filed against California borrowers, according to a report from MDA DataQuick, a division of MDA Lending Solutions. During the three-month period, 135,431 notices were sent to homeowners – an 80% increase from the prior quarter. Broken down by county, default filings increased year-over-year by 37.6% in Los Angeles County, 19.1% in San Bernardino County, 19% in Orange County and 12.5% in Riverside County. While most first-quarter 2009 foreclosure activity was still concentrated in affordable inland communities, there are signs that the problem is slowly migrating into other areas, DataQuick says. The affordable submarkets, which represent 25% of the state's housing stock, accounted for more than 52% of all default activity in 2008. Last quarter, these markets' collective share fell to 47.5%. On primary mortgages, California homeowners were a median of five months behind on their payments when the lender filed the notice of default. The borrowers owed a median of $12,926 on a median of $346,400 mortgage. On home equity loans and lines of credit, borrowers owed a median of $4,229 on a median $63,600 credit line. However,the amount of the credit line that was actually in use cannot be determined from public records, according to DataQuick. Although 135,431 default notices were filed last quarter, they involved 130,718 homes because some borrowers were in default on multiple loans (e.g., a primary mortgage and a line of credit). Multiple default recordings on the same home are trending down, DataQuick reports. SOURCE: MDA Da

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