Fewer California Foreclosure Home but Increase in Late Mortgage Payments

More California homeowners were late with their mortgage payments in the second quarter than during the previous quarter, but fewer homes were actually in foreclosure according to the Mortgage Bankers Association.

Here are some of the mortgage facts:

• Statewide, 2.19 percent of all mortgages were at least 30 days overdue in the second quarter, up slightly from 2.13 percent in the first quarter, but down from 2.9 percent in the second quarter of last year.
  
• California mortgages in foreclosure fell both on a quarterly and annual basis, to 0.27 percent.
  
• The peak for homes in foreclosure proceedings was the second quarter of 2001, when 0.87 percent of loans were in danger of foreclosure.

Foreclosure proceedings usually begin several months after a homeowner stops paying the mortgage, if the borrower is unable to either resume paying or sell the property and pay off the loan. The entire foreclosure process lasts 3 months and 21 days if a consumer does not bring their payments current. At that point, the lender would take possession of the home and sell it as a "foreclosure".

California foreclosures are quite low because of the strong appreciation so if individuals get in trouble they have time to refinance or sell the home. As home prices stabilize you will eventually see an increase in foreclosures.

Thanks for Reading.

Jessie J. Beaudoin