Although California home mortgage defaults have fallen 26% from in the third quarter compared to 2009, they climbed 19 percent from the previous three months according to MDA DataQuick.
Homeowners received 83,261 default notices, up from 70,051 in the second quarter. California’s unemployment rate was 12.4 percent in September. Unemployment is the primary reason for the increasing rate of default and foreclosures.
The foreclosure moratorium announced by Bank of America and other major banks due to shoddy paperwork will continue to add to the slowdown of bank owned properties making their way to the housing supply which prevents an additional downward pressure on home prices. Additionally, according to Rich Sharga, an executive at Realty Trac there are approximately 600,000 bank owned properties nationwide which are not being marketed currently but will be released gradually as the market stabilizes.
Please contact Anju Bhatia for further information or comments: Anju@RubyHillLiving.com
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