Affordable markets hit hardest as California foreclosure starts climb

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Notices of default filed against delinquent California homeowners jumped sharply from the first quarter to the second, DataQuick reports. The 25,747 California foreclosure starts tallied from April through June represented a 38.7 percent increase from the first quarter, when notices of default were at their lowest level since 2005, thanks in part to the impact of new state foreclosure laws that took effect Jan. 1.

Mortgage defaults remain concentrated in more affordable neighborhoods, with 4.2 notices of default per 1,000 homes in ZIP codes with median sale prices below $200,000, compared with 2.8 notices of default per 1,000 homes in ZIP codes where median prices were in the $200,000 to $800,000 range. Source: