We’ve already reviewed the default/disclosure April numbers for San Diego County, but there are addtional voices of concern about the future of local foreclosures. Roger Showley of the Union-Tribune spoke with analyst Andrew LaPage of MDA Dataquick recently for some thoughts on the April numbers. LaPage commented, “We’ve been talking for a year now how a growing amount of distress will be handled outside the formal disclosure process mainly through short sales (homes sold for less than the mortgage balance) and to some extent loan modifications and other methods.”
He also commented that the short-term trend has been uneven, “If you look at quarters, the general trend has been less going into the formal foreclosure process. We know short-sales are up significantly, as are loan modifications, and some would argue there have not been nearly enough loan modifications, but there are more than there were a couple of years back.”
Showley also spoke with Sean O’Toole, founder and CEO of ForeclosureRadar.com who acknowledged that there is still a large amount of inventory in the pipeline and at the current pace, it’s going to take years work through it.