The last quarter saw fewer homeowners being pulled down the road of foreclosure. In California, homes sales were up 33 percent from what was seen in February. In the Bay area, the housing market is experiencing more sales with prices down.
There were a total of 68,239 Notices of Default in January to March from JP Morgan Chase & Co, JPM UPBank of America Corp, BAC DOWN Wells Fargo Company, and WFC UPA.
This figure is down 2.2 percent from what was seen in the previous quarter of 69,799 and is down 15.8 percent from what was seen in the first quarter of 2010 as reported by DataQuick. DataQuick is a San Diego firm follows trends nationally of the real estate market through public property records.
During the last quarter, the Notices of Default were at the lowest seen since the 2nd quarter of 2007, which were 53,493. It was also just a tad over the half of what was seen in the first quarter of 2009, which were 135,431.
John Walsh, DataQuick president stated, “Lenders and servicers have put various temporary holds on foreclosure filings while they work on procedural issues and respond to regulatory and legal challenges. It’s unclear how much of last quarter’s decline can be attributed to market factors and strategic decisions, and how much can be attributed to the formalities of the foreclosure process.”
The majority of the loans went into default during 2005 through 2007, which is the median origination quarter for defaulted loans and is still the 3rd quarter of 2006, which is used as weak underwriting standards peaked at that time, which has been seen the last two years. The majority of the loans established in 2006 are serviced or owned by companies that did not make the loans.
The majority of the active “beneficiaries” in the formal foreclosure process during the last quarter included JPMorgan Chase with 9,634, Wells Fargo with 8,329 and Bank of America with 7,158.
The services with the highest number of defaults during the last quarter included ReconTrust Co (mainly for Bank of America and MERS), Quality Loan Service Corp (Bank of America), California Reconveyance Co (JPMorgan Chase), NDEx West (Wells Fargo) and Cal-Western Reconveyance Corp (Wells Fargo).
The most costly zip codes in California noticed had more mortgage defaults with a slight rise quarter to quarter while their defaults decreased less on a year-over-year basis than in the overall market. California’s 80 zip codes with median sale prices of $800,000 or more last quarter reported a 5.8 percent quarter-to-quarter rise in default notices and a 4.7 percent year-over-year fall.
However, zip codes with medians prices below $200,000 reported first-quarter defaults dropped 5.5 percent from the prior quarter and drop of 17.7 percent from a year ago.
On primary mortgages, California homeowners were on average behind on their payments six when the lender filed the Notice of Default. The borrowers owed a median $15,818 on a median $323,667 mortgage.
On home equity loans and lines of credit in default, borrowers owed a median $4,076 on a median $67,222 credit line.
Even though 68,239 default notices were filed during the last quarter, the defaults only involved 66,251 homes due to some borrowers being in default on multiple loans
The least common area of California to see default home loans was in San Francisco, Marin and San Mateo counties. On the other end, the most common areas for default home loans were in Tulare, Madera and San Joaquin counties.