Mortgage defaults decline on the Central Coast

Good news on California's Central Coast! According to a report released by DataQuick Information Services, the mortgage default rate on the Central Coast (defined here as Monterey, Santa Cruz and San Benito counties) is bucking the statewide trend. Notices of default in the three counties declined by 11.6% in Q1 2009 versus Q1 2008. This compares with a 19.0% increase statewide in the same period. 

Obviously, the statewide trend strikes a more somber note. Here's an excerpt from DataQuick's news release:

Lenders filed a record number of mortgage default notices against California homeowners during the first three months of this year, the result of the recession and of lenders playing catch-up after a temporary lull in foreclosure activity, a real estate information service reported.

 

A total of 135,431 default notices were sent out during the January- to-March period. That was up 80.0 percent from 75,230 for the prior quarter and up 19.0 percent from 113,809 in first quarter 2008, according to MDA DataQuick.

 

 

Last quarter's total was an all-time high for any quarter in DataQuick's statistics, which for defaults go back to 1992. There were 121,673 default notices filed in second quarter 2008 and 94,240 in third quarter 2008, during which a new state law took effect requiring lenders to take added steps aimed at keeping troubled borrowers in their homes.

Clearly this report indicates that the economic storm is still upon us. The statewide issues are very serious and will continue to drag on overall economic development. However, perhaps the data also indicate some patches of blues sky. If so, it may bode well for better economic times in the near future.