California foreclosures up 261% from '07 levels

Breaking: DataQuick reports today that foreclosures in California soared 33% from the first quarter to the second quarter of 2008, and are running 261% ahead of year-ago levels.

From DataQuick: "Lenders started foreclosure proceedings on a record number of California homeowners last quarter, the result of declining home values and the rampant spoilage of a batch of especially risky home loans made in late 2005 and 2006."

Writing on LATimes.com, Peter Hong leads with defaults rising to record levels: "A record number of California homeowners defaulted on mortgages last quarter, a real estate information service reported today."

Numbers:
-- DataQuick counted 121,341 "notices of default" in the second quarter, up 6.6% from the first quarter and up 124.9% from year-ago levels. The relatively small increase from quarter to quarter "may indicate that we're nearing a plateau," said DataQuick President John Walsh. "We won't know until the end of the year, but it may be that some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process."

-- Trustee deeds recorded, or actual loss of a home to foreclosure, totaled 63,061 during the quarter -- up 33.5% from the first quarter and up 261% from the second quarter of last year, DataQuick reported

Quarter  # of defaults in Cal.      "escape rate"
2Q 06    20,909                             88%
3Q 06    27,218                             80.9%
4Q 06    37,994                             71%
1Q 07    46,760                             52%
2Q 07    53,943                             54.6%
3Q 07    72,571                             45.9%
4Q 07    81,550                             41%
1Q 08   113,809                            32%
2Q 08   121,341                            22%

Source: DataQuick Information Systems

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