Fewer Foreclosures Reflect Real Estate Gains

The number of Ventura County homeowners going into foreclosure in September dropped to a five-year low, the result of higher home prices and increased sales, a real estate information service reported.

For the entire state, the number of foreclosures dropped to the lowest level since mid-1995, officials with Acxiom/ DataQuick Information Systems said.

Formal foreclosure proceedings were started against 10,232 California homeowners in September. That was down 3.9% from 10,645 in August and 16.4% from 12,240 in September of last year, DataQuick reported.

This September’s number was the lowest since 9,998 homes went into foreclosure in July 1995. An all-time high was reached in March 1996, when 15,475 homeowners got notices of default in the mail.

In Ventura County, 145 homeowners received notices of default in September. That was a 36.9% drop from a year earlier, when foreclosure proceedings were initiated against 231 homeowners. It is the lowest figure since DataQuick began tracking the numbers in January 1992, company officials said.

“Foreclosure activity has always been a lagging indicator, reflecting one- and two-year-old economic distress,” said DataQuick President Mike Ela. “The price increases of the last half-year haven’t affected the statistics yet, [but] we expect foreclosures to drop another 50% by spring.”

Higher home prices bring lower foreclosure rates by making it easier for financially troubled homeowners to sell their residences and pay off their mortgages.

The decline in foreclosure activity is most apparent in Southern California.

Foreclosure homes were a large part of the for-sale inventory a year ago, dragging price levels down significantly in many neighborhoods. Foreclosure homes now sell for 3% to 4% less than their open-market counterparts; they sold for more than 10% less two years ago, DataQuick reported.