Wednesday, May 03, 2006

California Foreclosure Activity Up - DataQuick

In a May 2 story, DataQuick Real Estate Information systems reports that foreclosure activity in the golden state has hit a two-year high during Q1.

The number of default notices sent out to homeowners is up 28.7% from Q1 2005, and up 23.$% from Q4 2005.

The drop in price gain momentum is one factor DataQuick states is a factor, since homeowners are now having a more difficult time selling their homes and paying off their lender. The amount of equity in a home and the type of loan used in the mortgage are other factors.

The median default amount on a primary mortage was $9,220 on a $280,000 loan. The Bay area is where loans are most likely to go into default, and the Central Valley and Inland Empire are the areas where loans are least likely to go into default.

Currently, only about 5% of homeowners in default end up losing their homes in foreclosure.


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