HOUSING: Mortgage defaults hit new high, spread to upscale neighborhoods
“.. notices of default, the first step in the foreclosure process, have spiked in the region’s tonier neighborhoods —- places that, until now, have avoided the mass foreclosures elsewhere —- while appearing to have reached a plateau in lower-end regions, which have already been hammered.
In fact, areas such as Valley Center and Rancho Bernardo shot up to be among the leaders in North County for most foreclosure notices per 1,000 houses.
The number of North County and Southwest Riverside County homeowners who received default notices on their mortgages in March reached its highest level since the housing recession that began in 2005, reported ForeclosureRadar…
As a result, there are tens of thousands —- maybe hundreds of thousands —- of foreclosures across the state poised to hit the market but have yet to, also known as “shadow inventory.”
“Forget about the 50,000 homes that just went into default, we have … somewhere around 10 to 12 months of supply” in foreclosures alone, not counting homes for sale that are not foreclosures, O’Toole said.
Ward Hanigan,
“It’s like an oil pipeline; it used to be five miles long and it’s been stretched three more miles,” Hanigan said. “So now it’s dribbling out until it gets full. And that’s what happening, it’s getting full. And then it’s going to gush.”
Default notices shot to new highs in areas of Carlsbad, Rancho Bernardo and Rancho Penasquitos. …
In fact, one region of Rancho Bernardo saw more default notices in March per 1,000 homes than Oceanside’s 92057 ZIP code —- the most foreclosure-prone neighborhood in North County over the last two years.
