Industry News

California’s mortgage defaults hit record level in Q3

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Lenders initiated foreclosure proceedings against a record number of California homes in the third quarter ended Sept. 30, real estate research company DataQuick Information Systems reported today. The company reported 72,571 notices of default from July through September, a 34.5 percent rise compared to the second quarter and a 166.6 rise compared to third-quarter 2006. The previous record default level of 61,541 was set in first-quarter 1996, compared with a low of 12,417 in third-quarter 2004. An average of 34,781 notices of default have been filed quarterly since 1992. Default notices, which are recorded at county offices, are the first step in a foreclosure process. The number of default notices set records for 39 of the state's 58 counties, according to DataQuick. Mortgages were least likely to go into default in San Francisco, Marin and San Mateo counties, on a loan-by-loan basis, the company reported, while the likelihood of default was reportedly highest in Merced, ...