Industry News

Real estate foreclosure activity rises in California

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Foreclosure activity in California edged up in fourth-quarter 2005, according to DataQuick Information Systems, a real estate information service. Lending institutions sent 14,999 default notices to California homeowners from October to December, up 19 percent from 12,606 for the third quarter, and up 15.6 percent from 12,978 for fourth-quarter 2004, DataQuick reported. Foreclosure activity hit a low during the third quarter of 2004, when 12,145 default notices were recorded. Defaults peaked in first-quarter 1996 at 59,897. DataQuick's default statistics date back to 1992. "Because of the rise in home values, much of that financial distress has been covered by the increasing amount of equity that people have had in their homes. That equity is now being created at a slower pace, and default activity is inevitably on the rise," said Marshall Prentice, DataQuick president. The annual home appreciation rate in the state hit 22.8 percent during the second quarter of 2004, and dropped to 14....