Foreclosure filings in San Diego County continued their drop in May, this time by a whopping 21% (year over year), according to Jen Lebron Kuhney of The Daily Transcript. Kuhney points out that “Foreclosures had been on the rise for three months straight before May.”
1,148 trustee’s deeds were filed, a 16% drop from April, while 1,798 notices of default were also filed, a 24% decline from March, according to Kuhney. Quoting Alan Gin, professor of economics at USD, “It’s a result more of the same of what we’ve been seeing over the past few months: The housing market is improving. The economy is improving. There is less job loss.”
Gin produces the USD’s Index of Leading Economic Indicators, and said he is cautious about making future predictions on foreclosures. Although there have been warnings of a recession double dip, “…Gin said it is possible that wave may not form.”
Concluding, Gin said, “‘We’re seeing a general rebound in terms of the economy…In San Diego we added jobs in hospitality, construction and temporary jobs. These are the first steps in business picking up again.'”
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.
All real estate, like politics, is local. Although the foreclosure numbers for San Diego were looking better in April, nationally the news wasn’t so good. Dan Levy of Bloomberg News recently gave us the numbers, and foreclosures (nationally) climbed to a record level in April.
Executive VP Rick Sharga of RealtyTrac was quoted, “Right now it appears that banks are focusing on processing the loans already in foreclosure, and slowing down the initiation of new foreclosure proceedings as a way of managing inventory levels. We’ll probably see this trend continue for a while.”
On a related story, Alan Zibel of the AP reported recently that mortgage defaults have spiked, mostly due to the bad economic situation regarding employment (or the lack thereof). Quoting, “More than 10% of homeowners had missed at least one mortgage payment in the January-March period…”
Inman News reported that for the first time since January, foreclosure filings declined on a month-to-month basis in April. Inman based this on a report from the data company ForeclosureRadar.
Quoted from the Inman article, “‘The steady rise in cancellations leads us to believe that loan modifications and short sales are gaining traction’, said Sean O’Toole, found and CEO of ForeclosureRadar.com, in a statement.” He did add this, “‘I’d caution, however, that cancellations also occur due to filing errors and extended postponements, which require the notice of trustee sale to be refiled. In fact, 14.6 percent of new notice of trustee filings in April were on previously canceled foreclosures.'”
Jen Lebron Kuhney of The Daily Transcript recently reported the San Diego County foreclosure numbers for April, and they were up for the third month in a row. Notice of defaults were down 5%.
Kuhney reported that in the first four months of 2010, there were 4930 trustee deeds filed. That was a 9 percent increase over the first four months of 2009.
While USD professor of economics Alan Gin didn’t think that this number is significant, real estate broker Matt Battiata is concerned and still maintains that a backlog of foreclosures have yet to hit the market, which could cause another housing downturn in San Diego County. Gin said he wasn’t concerned with the April foreclosure numbers, but was concerned that stability in the market could be threatened by higher interest rates.
Alex Viega of the Associated Press reported that RealtyTrac Inc. recently released stats on foreclosures, in the first three months of this year they jumped 35% from the first quarter of 2009.
Rick Sharga, who is a senior vice-president for RealtyTrac, said the US is on pace this year to have more than 1 million foreclosures. “We’re finally seeing the banks start to process the inventory that has been in foreclosure, but delayed in processing.” He went on to add, “We expect the pace to accelerate as the year goes on.”
Viega went on to say that Nevada, Arizona, Florida and California had the highest foreclosure rates (Nevada being number one). California had the biggest share of total US foreclosures at 23%.
Jen Lebron Kuhney of The Daily Transcript reported recently on the March foreclosure stats for San Diego County. The bad news is that filings were up from February, but were down from March of ’09.
According to Kuhney, 2,491 notices of default and 1,288 trustee deeds were filed in the county recorder’s office in March. Trustee deeds were up 13% from February while notice of defaults were up 6%.
Quoting from the article, “While the number of foreclosure filings are at historically high levels, there have been almost a third fewer filings in the first quarter of 2010 than there were in 2009 and a quarter fewer filings than 2008.”
Michael Lea of USD thought there was a potential of the numbers to start rising to the point that there will be a year-over-year increase because there are still a large number of loans out there that are in serious default.