Notice of Default Rates Drop in California
The Los Angeles Times reported this morning that the number of NODs (Notice of Default) files declined sharply in the fourth quarter. The NOD is the first step in the process of foreclosure when a lender issues a notice to the borrower that the terms of repayment have not been met and the foreclosures process can continue until (usually) late payments are brought current.
According to DataQuick Information Systems, 69,799 NODs were files in Orange County in the fourth quarter, which is down from 83,261 in the third quarter of 2010 and also lower than the 84,568 notices filed 12 months ago. What is not clear by the statistics is the reason for the decline. Some feel that the "robo-signing" freeze has caused the lower numbers while others feel that the number of so called non-document loans has finally worked through the system.
The greatest change in the declining number of NODs occured in Los Angeles, Riverside, San Bernardino and San Diego counties, while Northern California counties showed smaller declines with Marin county showing a gain in the notices. The article also claims that areas with higher priced homes are showing more NODs than lower priced home areas.
Will this trend continue? Hopefully it will but there still needs to be a strengthening of our overall economy. Job are the key to this recovery. California's overall rate is still around 12% with Los Angeles county at 14%.
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