Foreclosure Peak In San Diego

Last month mortgage defaults surged ahead to cross 2,000. It became six times more than the previous year. Going into delinquency is the first step leading to foreclosures. In August the number of delinquencies was 2,071 – a double high-jump form last year same time. In July it was 1,573. Data is being collected from 1988.

Another type of sales is trust-deed sale, which is concerned with foreclosed units. Lenders initiate it but these are not always sold to new buyers. Trust deed sale figures were 833. In July it was 641 – that is a jump of 6.2 times from 134 in August. The last highest record number was 657 in June.

Banker’s associations too are keeping track. 5.1% of 44 million loans have already slipped into the due stage. According to another tracking group re-sales in South Carolina was responsible for 8.8% of the total number of sales during August. This was an increase of 8.3% from July and 22. % from August of the previous year. Experts are of the opinion that the foreclosure units priced at a low mark has not yet had any remarkable effect on general prices except where there has been a large concentrations of this crisis like Riverside and San Bernardino Counties.

The trend is noticed in other pockets of activity. Mortgage companies financing of adjustable rate mortgages has declined. It is also reflecting on multiple mortgages also. Down payments scenario is steady and the number of quick sales and purchases by investors have remained more or less the same.

It seems that San Diego has gone into the red because a number of giant size loans had been taken here. It exceeded $417,000 – a limit set by the big mortgage companies like Fannie Mae and Freddie Mac. But with restrictions the number has been somewhat contained.

The first half of the month of August 2007 saw 43.4% of house loans in Southern California in the jumbo loan category. But in the second half the number in this group had gone down to 39.7%. According to figures in San Diego County there were 39.1% of all the loans were hefty sized in July. But the numbers slowly started falling with 38.7% in the first half of August and 36.1% in the second half.

The harsh facts and figures are on the table for interpretations and analysis to be made.

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