Jul 28, 2011

California Defaults Reach Lowest Rate in Four Years

According to a report in dsnews.com,

For the second quarter of 2011, California homes entering the foreclosure process decreased to their lowest rate in four years, according to DataQuick, a San Diego-based company that tracks nationwide real estate activity.

DataQuick attributes the decrease to an increasingly stable housing market and new mortgage servicing policies.

“A lot of theories are being floated as to why the numbers are down. Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market,” said John Walsh, DataQuick president.

“The fact of the matter is that no one really knows, outside of lending and servicing industry insiders,” Walsh continues. “One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us.”

The number of notices of default decreased 17 percent from April to June when compared with the previous quarter and 19.2 percent when compared with the second quarter of last year. It was the lowest rate reported since the second quarter of 2007.

DataQuick reports that most of the loans defaulting today were originated between 2005 and 2007 when weak underwriting standards were most prevalent.

Read more visit - http://www.dsnews.com/articles/california-defaults-reach-lowest-rate-in-four-years-2011-07-20

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