Southland Foreclosures Down

In another sign that Southern California’s wobbly real estate market is regaining its balance, a real estate information service reported that lending institutions are starting fewer foreclosures proceeedings.

Lenders recorded 21,926 notices of default on homeowners in Los Angeles, Orange, Ventura, San Bernardino, Riverside and San Diego counties during the April-to-June period. That was down 3.1% from 22,630 for this year’s first quarter and down 10.3% from 24,442 for the second quarter last year, Dataquick Information Systems reported.

Foreclosure is a problem in all home categories, striking at both the high and low ends of the market. As of today, there are 68 homes in foreclosure in Beverly Hills, 58 in the Malibu area and 37 in the Bel Air area.

In fact, a total of 141 homes are being foreclosed on statewide that were originally bought for more than $1 million.

The vast majority of the foreclosure homes, though, are middle-of-the-road three-bedroom, two-bathroom houses bought for $150,000 to $200,000 four years ago when prices wee increasing rapidly. Homeowners are generally 8-10 months behind on their mortgage payments when lenders start the foreclosure process.