All Waves Crash, Baby
"Waning home price appreciation has recently caused the fastest rate of increase in foreclosure activity in California in the past 14 years, DataQuick Information Systems reported Wednesday."
"The company compared foreclosure activity as measured by default notices between the second quarter of this year and the second quarter of 2005."
"Default notices are filed with the county recorder's office and mark the first step in the foreclosure process. The increase in the default notice rate was highest in Northern California, 97 percent, and in the Central Valley, 85 percent."
"Every Bay Area county except Marin experienced an increase in the notices of default on houses and condos during the one-year period ending June 30, according to DataQuick's figures."
"They increased 74 percent in Napa County; 65 percent in Solano County; 53 percent in Sonoma County and 51 percent."
"Default notices increased 104 percent in Riverside County; 99 percent in San Diego County; 108 percent in Sacramento County; 110 percent in Stanislaus County and 126 percent in Placer County."
"In Sutter County, the default rate increased 229 percent. There, second quarter default notices increased from 17 in 2005 to 56 in 2006."
"Dennis Kelly, assistant manager of Coldwell Banker in San Rafael, said DataQuick's figures sound "extreme,'' but he said he has recently noticed anecdotal evidence of some people in Marin County falling behind their mortgage payments, especially those with 100 percent financing of their mortgage. He said the default notice rate in Marin County could increase."
"Kelly said it takes lenders three to six months to file a notice of default and then another three months for lenders to issue a notice of sale."
"DataQuick's Marshall Prentice said that while rising payments on adjustable rate mortgages can trigger "borrower distress,'' the spike in defaults is mainly due to slowing price appreciation.
"It makes it harder for people who fall behind on their mortgage to sell their homes and pay off the lender,'' Prentice said."