Home Foreclosures Up 10.7% Countywide in 3rd Quarter

Home foreclosures in Orange County were up 10.7% in the third quarter ending Sept. 30 compared to the same period a year ago, according to DataQuick Information Systems, a real estate data service in La Jolla.

During the quarter, lenders filed 2,808 notices of default, the first step in a foreclosure, compared with 2,536 notices filed with the county during the same period last year.

“Foreclosure activity will probably stay at current levels through the end of the year and then decline slowly as the economy picks up,’ said Michael T. Ela, DataQuick president. “It takes a while for the market to absorb these properties and they’re a significant drag on price levels, especially in Southern California.” Southern California homes that have been foreclosed on are selling for about 80% of what other homes are selling for, down from about 85% a year ago.

Foreclosures throughout the state increased in the third quarter. Lenders started foreclosing on 32,904 homeowners during the quarter, a 2% increase from foreclosures in the second quarter and a 9.4% increase from the same quarter last year, according to DataQuick.

The number of third-quarter foreclosures increased 8.6% in San Diego County, but dropped about 1% in Los Angeles County.