Lenders initiated formal foreclosure proceedings last quarter with the lowest number of California homes in almost nine years, according to the latest CoreLogic DataQuick report.
During the July through September period, the number of default notices issued by lenders fell 17% from a year earlier — to 16,883 — in response to the “dwindling pool of toxic home loan
s” made in 2006 and 2007, the real estate information firm said.
Defaults also fell 4% from 7,524 in the year’s second quarter.
The third quarter total was the lowest since 15,337 default notices were filed in the fourth quarter of December 2005 and down 87.5% from the record 135,431 in the first quarter of 2009.
"This home repo pipeline isn't exactly drying up, but it sure is diminishing. Its negative effect on the overall market is only a fraction of what it was several years ago, and is really only still noticeable in some pockets of the hardest-hit markets of the Inland Empire and Central Valley," said John Karevoll, a CoreLogic DataQuick analyst.
In Los Angeles County, defaults fell 12% from a year ago — to 3,868 — but were basically flat from the second quarter.
San Bernardino County saw a drop of 23% from a year ago — to 1,427 — and 7.5% from the second quarter.
Meanwhile, foreclosure filings, including default notices, scheduled auctions and bank repossessions, were reported on 317,171 U.S. properties during the third quarter, marking the first quarterly increase in three years, according to RealtyTrac's latest September and third quarter Foreclosure Market Report.
While the majority of the country experience a rise in foreclosures, California saw a record-low during the third quarter.