Interesting Foreclosure Statistics April 13, 2008 Southern California Areas

I am always frustrated how the media and other trade groups use statistical data to prove the point they want to make, thus I like to do my own statistical research. If you have read my web site previously, you are aware of how I “harp constantly” about UNDERSTANDING THE NUMBERS!!! Up to now, I have only charted inventory, new sales (pendings) and new listings.

I decided to check out some foreclosure statistics. I obtained these stats from www.foreclosure.com which I subscribe to. These numbers will not be perfect. I have noticed some duplications as well as errors on this website, however this is the best I have to work with and nothing is perfect.

Foreclosed Properties	Notices of Default	Ratio of NOD's to F/C's*
2,702	10,297	26.2	Orange County
2,340	14,584	38.6	San Diego County
8,109	22,325	36.3	Riverside County
17	61	27.9	La Jolla zip code 92037
88	234	37.6	Downtown San Diego Zip Code 92101
258	605	42.6	Desert Hot Springs Zip Code 92240
41	122	33.6	Palm Desert 92260
150	503	29.8	Cathedral City 92234
66	215	30.7	Palm Springs 92262
36	137	26.3	Palm Springs 92264

My ratio of actual foreclosures to notices of default filed tells me that about 70% of properties that go into foreclosure are “cured”. This represents a 5% decrease in the cured rate from January, 2008, the last time I did this analysis.

“Curing” the default means the loan was brought current or paid off during the foreclosure period. After a notice of default is filed, the borrower has ninety (90) days in which to bring the payments current. Between the 90th day and the 120th day, the borrower must pay off the loan in full in order to save the property. After 120 days of being in foreclosure, a trustee sale can be held on the courthouse steps with the property sold to the highest bidder or just taken back by the lender.

The statistics show that, in general, the more affluent the area, the fewer number of foreclosures. This is partly because more sub-prime loans were made in the lower priced neighborhoods.

In reviewing these stats, foreclosed properties as well as properties that have had a default notice filed doubled in the three month period from January 08 to April 08!!!