New Foreclosure Starts Drop to Eight-Year Low
Across the State of California the number of homeowners who went into the “normal” foreclosure process dropped to an eight year low in Q4 2013 which can be directly attributed to an improving economy, better foreclosure prevention efforts by lenders and higher sales prices of homes according to DataQuick.
There were a total of 18,120 Notice of Defaults (NOD’s) recorded in California in Q4 2013 on California homeowners which was down nearly 11% from Q3 2013. The number of Notice of Defaults peaked in A1 2009 with a record 135,431 NOD’s being recorded – quite a staggering number! San Diego based DataQuick has been compiling statistics on NOD’s recordings dating back 10 1992.
According to Jack Walsh, Data Quick President "Some of this decline in foreclosure starts stems from the use of various foreclosure prevention efforts - short sales, loan modifications and the ability of some underwater homeowners to refinance. But most of the drop is because of the improving economy and the increase in home values. Fewer people are behind on their mortgage payments. And of those who do get into trouble, many, if not most, can sell and pay off what they owe. Also, those who are underwater and close to slipping into foreclosure are far less likely to give up their homes now that appreciation has returned to the housing market. There's a strong incentive to hang on."
Greg Steinaker, CEO of BanCorp Realty was quoted “This dramatic drop in Notice of Default filings can only help to continue fueling increased home market values in the localized Orange County, CA market – decreased NOD filings lead to a seller’s market – driving up home prices.”