County home foreclosures rise 551% in first half of 2007

[Demeter]

Source: UNION-TRIBUNE





By Emmet Pierce
UNION-TRIBUNE STAFF WRITER

11:31 a.m. July 24, 2007

SAN DIEGO – Home foreclosures in San Diego County continued their troublesome upward climb in June, but analysts say the number has yet to reach a threshold that creates a drag on real estate prices or the economy at large. “California is better off than the nation and San Diego County is better off than California,” said researcher John Karevoll of DataQuick Information Systems. “It still is not a major factor in the real estate market, but if there is a recession, it could become a huge factor.”

DataQuick reported on Tuesday that during the first half of 2007 San Diego County had 2,896 foreclosures compared to 445 during the first half of 2006, a 551 percent increase. From May to June of this year, foreclosures increased from 532 to 657, a 24 percent increase.

Notices of default, the first step in the foreclosure process, totaled 8,314 for the first six months of 2007, compared to 3,311 in the same period last year, a 151 percent increase. From May to June of this year, default notices rose from 1,441 to 1,596, an 11 percent increase.

Statewide, mid-year default figures were the highest in more than a decade. Across California, lenders filed 100,703 notices of default during the first half of the year, up 153 percent from 39,765 for the same period last year. For June, there were 19,834 default notices statewide, a rise of nearly 12 percent from 17,751 in May.


Read more: http://www.signonsandiego.com/news/business/20070724-1131-bn24default.html

[Doctor_J]

1. You can go to the emergency room!

Oh, wait, that's *'s other economic disaster

[slackmaster]

2. Link to additional information

http://www.dqnews.com/

[fed-up]

3. Foreclosures go through the roof in CA-up 800%

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/07/25/BU44R6ES42.DTL


Foreclosures go through the roof
Carolyn Said, Chronicle Staff Writer
Wednesday, July 25, 2007

The number of Bay Area homes lost to foreclosure during the second quarter hit the highest level in almost two decades, and the region's homeowners also received a record-high number of mortgage default notices, according to a report to be released today.
California also set a record in the April-to-Jun

...

Big numbers
-- 7,696 The number of Bay Area homeowners who received notices of default in the last quarter, up from 2,910 in the same period last year.
-- 53,943 The number of California homeowners who got notices of default, up from 20,909 from the same period last year.
-- 800 The percent increase of homes in California whose deeds reverted to bank ownership.
Source: DataQuick Information Systems
E-mail Carolyn Said at [e-mail].





Luckily I sold and got out of my fixed/arm last Nov- but unfortunately ended up buying a former undisclosed meth lab-I may just wait one more year to buy again (if/when I can rescind this contract) and hopefully will end up saving from $20-40K...


I grew up in San Bruno and can't believe a 1200 sq ft 50 year old house sells for close to $800K

[CreekDog]

4. I think San Bruno 1200 sq ft is now about 750k, even sub 700 if you don't mind airplanes

I'm looking in San Bruno!

Heck, except that I already own a condo in SSF, I'm trying to buy into this market since I can actually afford something now. So, I don't think Bay Area prices will come down much --too many people on the sidelines waiting.

The way I figure it, my place at 500k loses 10% to 450k. But the place I want to trade up to goes from 750k to 675k. I make 25k progess towards the elusive detached home. Though in actuality, I just break even because of the realtor commission, which I don't begrudge, a good one actually works hard and only gets a portion of it in the final analysis.

[fed-up]

5. I grew up in the Crestmoor area-a little further from the flight path (most of the time)

pm me if you have any questions about neighborhoods

Rollingwood is foggier

watch for homes on hillsides due to slippery/sliding clay during prolonged periods of rain

I was in SB from 1996-1999 taking care of my mother and got to witness the devastation from the landslides

also be aware that you are about 1-2 miles from the San Andreas Fault...

[fed-up]

7. Here's one on the street I grew up on

http://www.sanbrunohomevalues.com/home_values/list.php

Active

2321 Princeton Dr

$800,000

3/2

1,140

49


one recently sold

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/06/17/REHS_smateo.txt
Sunday, June 17, 2007

2440 Princeton Drive
$825,000, 3 bdrms, 1360 sq. ft., 1958

[Purveyor]

6. Up 551% but analysts say it has yet to create a drag on RE or the economy?

Are these analysts the same pimple-faced analysts that kept telling all to continue buying tech stocks in 2000 while the bottom was falling out of the NASDAQ?

[tanglefoot]

8. That'd be my guess

Got very little respect for those idjits. Still haven't made back all my rollover losses in 2001. Bastids.

[Lucky Luciano]

9. Shhhhh!!

They must not let everyone know that all those mortgage backed CDOs may need to unwind at a substantial loss - lots of banks have not properly marked a lot of their complicated mortgage derivatives - partly because of the hell that realizing a multi-billion dollar loss would cause to their bonuses when they mark-to-market...and partly because it is genuinely hard to find an accurate price for a lot of the securities they have traded that have moved against them (These are often OTC contracts that have unique characteristics and cash flows, so quotes are hard to come by).

Look at stocks CFC, CIT, MTG, RDN...not doing very well....lots of mortgage exposure...much of it is NOT sub-prime....

Subprime is spilling over into the credit market at large. Cerberus Capital could not get the $12B funding they needed for buying Chrysler from Daimler....they will have to try again...and KKR was not able to sell their $10B of debt to buy Alliance Boots in that LBO. The large number of other LBOs are threatened out there as well as many deal names have fallen greatly in value due to the credit crunch of funding their purchases...see Alltel (AT), CCU (Clear Channel), TXU (Texas Utilities), RDN (from above - MTG is buying them), First Data Corp (FDC), Archstone (ASN), and many others. There is a credit crunch right now - it started with subprime and it is continuing toi spill over all of the corporate debt markets these days. So far, the stock market has not been affected too much as it is near its record highs - however, volatility is also quite high now. Things are getting a little risky out there....

Oh..and who has been funding all of these LBOs that have close? A lot of investment banks are on the hook for that....Goldman Sachs has made a fortune in the LBO craze....they are exposed to the LBOs and the defaults that will inevitably occur down the road - they could lose billions from funding all of these deals. Stay tuned!

[madrchsod]

10. how in the hell does anyone afford these houses?

most of the houses i looked at in another post would`t top 350 where i am at. my house would be "worth" over 600 and it`s appraised at just over 100....dam

[Lucky Luciano]

11. uggg...you should see Manhattan...

where a one bedroom with 800 Sq feet could easily run a million or more. Ridiculous...NYC is one of the few places wehre real estate is still super hot. Housing is up 11% YTD here. Mostly because large Wall Street bonuses means lots of money for young rich people buying homes. A bad year for Wall St and look out below on NYC housing!

[slackmaster]

12. Beats me - I make more money than I did in 1994 when I bought mine, BUT...

...I could not possibly afford to buy my house on my salary now, if I was just starting out.

:freak:

I think only DINKs (Dual Income No Kids) have any hope of buying houses in SoCal at the moment.

[Sen. Walter Sobchak]

13. Gee... maybe paying $750,000 for 10 sq. ft. of wartime house was a bad idea?

nah!

It's California, every worthless little half-million dollar plus shack is a foolproof investment!

[fudge stripe cookays]

14. I couldn't imagine...

paying for a house that's 8 1/2 times my yearly salary. I just couldn't. When reprehensor and I bought in 2002 outside Dallas, we had a certain amount allotted, and bought beneath it. We wanted to make sure we could make the payments even if one of us lost a job.

We could have afforded $160,000 worth of house. We looked at $110,000 houses, and found one at $105,000. Sure enough, with me working in telecom, I got laid off in 2005. But I got the golden handshake-- four months worth of salary, vacation, and a bonus in lieu of notice. We were just fine.

I could never live in California. I'd be a nervous wreck all the time.

[Joe Bacon]

15. CLAP HARDER boys and girls, CLAP HARDER!

There's nothing wrong boys and girls! CLAP HARDER and Tinkerbelle will spritz you with her fairy dust and everything will be fine, CLAP HARDER!!!!!!!!!!