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.

More, 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.

More to come on this.

Comments

[mark t davies]

i am sorry butpeople in california earned this problem, the only problemis like all the other problems this self absorb stae has they will export to the rest of us. I mean really watching all those shows like flip this house and what its worth on hg tv 2006, i knew you people were mental, i saw a house in Compton that looke like what i would picture a compton house to look like go for $450,000 and though, those people have lost their minds in dallas that home would have been maybe 70,000 most likely 45,000 just due to the neighborhood it would belong too. you people earned it, so live with it

[Mike from NYC]

Maybe housing will finally be affordable once again in the near future when the prices drop another 20%. The bubble caused housing to grow in cost far faster than incomes. It was only a matter of time before the bubble burst. All those poor *astards who believed all the 'experts' that real estate only had positive sides. Those experts must be children as any one over 30 knew that real estate could collapse - see the late 80s and early 90s.

[KING OF K-TOWN]

LA will drop another 15% to 20%. The urban core will remain strong as there is no alternative which is close to the jobs. When small houses in the urban core hit $300K (they are getting close) that is a time to buy. Inland Empire is a lost cause - 5 to 8 years to recovery.

[Jason]

A crap state that encourages illegal immigration, banning everything in site and overrun with corruption and drugs. I am surprised property out there was ever worth anything.

[zucco]

Poor bankers! Poor Lenders!

They sold us LEMONS - properties they KNEW could not sustain the appreciation they touted - MONEY IS THEIR BUSINESS, right? No, it's greed - Here's a 3-year hard-pay ARM, it'll be so great in 3 years! Just take a temporary loss and your property will be even more golden than now! Taxes go UP, insurance goes UP, then BAM, sorry, there were no values to begin with! Now pay up, sucker!

To anyone reading this: if you are an investment home owner in a similar situation, DUMP IT NOW - take the hurt rather than a slow bleed.... remember, there is NO SUCH THING AS "REAL" ESTATE - the bankers own it and can throw you on the street if you miss only one payment - a house is not a home - you live in a BANKER'S home.

[MyLessThanPrimeBeef]

I see I can't get it by Peter. Yes, that's what I meant.

Strictly speaking, on the ordinary, every day level, it's not possible. But under quantum reality, that's what you believe that counts. And that's what the bleep this is all about. And I choose to believe prices should be 150% less.

[John Doe]

1st or 2nd inning of this Housing Disaster?? I think not... National Anthem is playing. Housing prices in Los Angeles are highly overpriced. EVERYWHERE. Don't look for this to bottom for another 3 or 4 years at best. Inflation will make it worse.

[penn]

The scariest thing about this economy is the uncertainty of it all. The stats show foreclosures rising like a rocket, and yet the stock market rallied today and we don't even know if we're in a recession. We're still not decided on that.

Probably because there are two economies: the virtual and the real. The virtual consists of a few things, like the trillions of dollars that exist only on computers, the purely speculative hedge funds (reincarnations of the 1920s investment trusts), infinite credit lines, and the eternally expanding debt market.

And then there's the real economy, in which most of us live and die.

The virtual and real economies were, for a long time, separate. Then the virtual economy started speculation on REAL estate.

There's my crack theory.

[Tax me to death]

When mortgage companies lend money on interest only loans, do you think they could tell that at some point it would all collapse. California is to blame for the mess, its housing prices set the stage for the rest of the country. Super high house prices make for a house of cards waiting to fall.

No one goes to jail for this mess, the taxpayers are left with the check. WE GOT SCREWED AGAIN.

[CarMatchPro]

I predicted this happening (2004) bought Euro's. This is very unfortunate. And it still has not hit bottom and probably won't see the likes of it until next year.
There will be slight swing up for Sept, but then will continue a downfall. Being in 3 real estate booms/busts...I see the writing on the wall.

It's one of the reason where I was concentrating on people's 2nd biggest purchase/expense.
The auto.

http:///www.carmatchpro.com

[John Anderson]

Wow one foreclosure in 192. Less than one half of one percent and you make a big deal of it. Pure BS.

[MyLessThanPrimeBeef]

My theory is that, and you can quote me on this, the world ended yesterday.

And we are...welll, I don't know where we are.

[peteviles]

MyLessthanprimebeef wrote, "the world ended yesterday."

Well OK then. Thanks, Less. What's your theme music? Your choice:

R.E.M.
It's the end of the world as we know it.
It's the end of the world as we know it.
It's the end of the world as we know it and I feel fine.

or, my personal favorite, Skeeter Davis:
Why does the sun go on shining
Why does the sea rush to shore
Don't they know it's the end of the world
'Cause you don't love me any more

[MyLessThanPrimeBeef]

Say we have one small pox in 192 homes.

That's a big deal...when it's deadly.

I think that's how it started in Albert Camus' The Plague.

[MyLessThanPrimeBeef]

Well, I think that calls for a new song. I have the lyrics but not being musical, I don't have the tune yet.

I say I will love you
till the end of the world
and not one day over

I say we will be together
till the end of the world.
Thank God, it's over.

[Tom Teryl]

Yes there is a small way down yet. But remember-many people who CAN afford(the majority) their mortgage payments bought between 2004-2007. Almost all of them owe more than the house is worth--but they can pay their mortgages. When the final cycle of foreclosures winds down in 2009 or 2010...those millions of buyers who are financially stable will be the ones to start setting the prices.They aren't going to and dont have to take bottom dollar for their houses. YES--the bottom aint here--and it could get a bit uglier....but the bounce up is gonna take people by surprise with its swiftness. For those thinking of waiting til things start the upswing until buying again--beware. The bargains will be gone and you will be mad at yourselves for waiting. Always go against the herd mentality.

[Robert Morgenthal, III]

I just sold my house on La Cienaga for $2.3mm and I had five offers above my asking price of $2.1mm. I bought it five years ago for $1.1mm. There is nothing wrong with the housing market in my opinion.

[It All Happens on the Margin]

By golly, if Robert Morgenthal, III thinks everything is fine, then it must be fine.

Sellers, START YOUR ENGINES!

[MyLessThanPrimeBeef]

Robert, you are too good for this blog.

Please use all your new found wealth to dissuade Rep. Frank and Sen. Dodd from interferring with free market capitalism.

[E]

1. BP @ 1:14 is an idiot to think that toxic loans weren't written past 2005. Loose lending was around until 2007.

2. If Robert Morgenthal @ 3:27 had actually owned a house on La Cienega for five years, he should know how to spell the street name.

DOLTS

[Travis]

The progresssion is the scary part. Because of a bad housing market, construction workers lost/are losing their jobs, then bank jobs were lost. Then (along with the others) bankers and construction workers lost their homes Or took a loss and moved to Idaho.
The mess has caused families to leave. A decline in population ruins an economy, but the exponential effects will be great.
Here is the timeline
bad market---loss of jobs---bad stock market ---movement of more jobs ----further loss in home values---Suicides - --more forclosures ---more suicides ---declining population ---Bad economy ---more suicides---bad economy ---murders ---leaving due to fear ---declining population ---

Get Out Now!

Let's just hope that it stays in California.

[Chuck]

TO: My Less Than Prime Beef and Peteviles:

Maybe I am a little slow on my math this week but if I punch in $800,000.00 on my calculator minus 150% x that amount--I come up with the owner owing me $400,000.00.
Now, if I punch in $800,000.00 again minus 50% than I get me buying the house at $400,000.00. Maybe this is why the housing market is in such bad shape because people can't do math.

[Nostradamus]

Quatrain 4
Sacagawea shall reclaim the great west of the New World. Court jesters rule the tremble zone. Arrow of "Dent " all Provence sucked up, many driven out of the realm, enraged without spitting.

[save your ammo]

BP (excuse me for abridging your rant) --

"If you want to help the economy, buy a foreclosed home. Get yourself a steal. Sit on it for a couple of years and make a ton of money. As long as they are available, normal people can't sell their homes. It's a point of total insanity that banks are liquidating their assets by discounting them by 40-60% just to get some cash in their hand when they can borrow it from the Fed for virtually no interest. But anyone who can ought to be taking advantage of that stupidity and buying a foreclosure in the best neighborhood you can afford.

Trust me, you'll be very, very happy in 2009 when you see the other homes being sold by actual homeowners. And you can cash out at whatever the cap gains rate is at the time."

BP, YOU WIN !!!

Your entry contains the most long winded POS logic
posted on this blog in the past week! LOL

[E]

Travis...

haven't you seen the articles lately regarding suicide in Japan and the suicide tourism in Mexico?

Maybe the next big thing to invest in will be euthanasia clinics!