When the public sees a story like this, they think that all is good, and getting better, from the U-T:
San Diego County had fewer mortgage defaults and foreclosures in the second quarter than it has had in the past three years, according to a report released today by MDA DataQuick, a real-estate research firm based in La Jolla.
Countywide, 5,458 homes went into default during the second quarter, a 45 percent drop from the total of 9,866 during the same period of last year. That’s the lowest number since the second quarter of 2007, just as the county was slipping into recession.
Foreclosures dropped 6 percent from 3,518 in the second quarter of 2009 to 3,315.
The same trend is showing up throughout California, with the number of defaults dropping for five consecutive months, resulting in a 44 percent year-to-year drop. Foreclosures, however, rose by 4 percent, driven partly by jumps in relatively pricy neighborhoods in Orange County, San Mateo, Marin, Los Angeles, Santa Barbara and San Francisco counties.
John Walsh, DataQuick’s president, said there were several reasons for the decline in defaults, including “motivated sellers and accommodating lenders” who have been doing more short sales; public policy, including tax incentives for homebuyers; and a rise in prices over the past year.
Walsh said that if prices continue to rise, “fewer homeowners will find themselves under water, which is a significant factor in letting a home go.”
Out of the 85 ZIP codes in the county, only two had a rise in defaults: Coronado and Del Mar. Two others had the same number this year as last year: Borrego Springs and the area around Rancho Santa Fe’s post office. Except for Borrego Springs, those neighborhoods are among the priciest in the county, with median home prices above $1 million.
DataQuick noted that statewide, mortgage defaults spread from lower-cost markets into more expensive neighborhoods, although that trend appears to be leveling off.
Great, everything is DoublePlusGood!!!!!
cram people into phoney loan mods, postopone, and cancel sales resulting in a foreclosure drop on paper as we head into election season…shocking.
Just in case someone doesn’t get that Ponzi reference look it up in the great doublespeak dictionary online at
http://www.newspeakdictionary.com/ns-dict.html
Aloha from Makaii
O crud and I just signed a new lease and I am stuck renting for another year when everyone else is going to make a killing on real estate. Did they also clean up all the oil? ( end sarcasm)
It’s a math thing. Believe it or not, foreclosures actually decrease when you let people stay in homes without making their payments, and choose not to do anything about it.
Exactly, Troubled Loner.
This isn’t “news” to anyone who is paying attention and knows about all the “free rent” where deadbeats are allowed to squat without even getting a NOD.
News Flash Monday – In an effort to decrease drunk driving, California legislators raised the legal BAC limit for driving under the influence to 100%.
News Flash Tuesday – Drunk driving arrests fell to zero. California legislators held a party to congratulate themselves for ending the horrific problem of drunk driving.
Tax incentives and policy decisions lead to higher home prices. They say history repeats itself, but I didn’t think it was on a 5 year loop!
“When the public sees a story like this, they think that all is good, and getting better”
More likely, their heads are exploding from all the cognitive dissonance.
Green Day has a song that fits this market called “AMERICAN IDIOT”
You asked me once, what was in Room 101. I told you that you knew the answer already. Everyone knows it. The thing that is in Room 101, is the Southern California Coastal Housing Market losing value and not regaining it in our lifetime.