Foreclosures Hit Ten-Year High
California's housing market continues to show signs of weakness as foreclosure activity hits a ten year high.
California's housing market continues to show signs of weakness as foreclosure activity hits a ten year high. John Karevoll works for the Real Estate Tracking firm Dataquick . He says California lenders filed nearly 54,000 notices of default during the second quarter of the year. In San Diego almost 4,400 notices were filed. Karevoll says the foreclosure notices hurt consumers and they hurt banks.
Karevoll: They have marketing expenses, they have holding expenses. I've seen estimates that bank's generally lose about one fourth of the money they've got into a property if they have to go through the foreclosure process on the property.
Karevoll says just over half of the homeowners who enter the foreclosure process either bring their payments up to date, refinance, or sell their homes. That's down from nearly 90-percent a year ago.