In the Orange County Register today they reported that California real estate market was still having difficulties as shown in an increase of properties that have default notices - 19% more. The number of properties in default in California climbed 19% over the last quarter.
This is the first time we have had an increase quarter over quarter since the beginning of last year. We have extremely high unemployment and underemployment here in the state which is not helping the overall market.
It is not changing to the better 83,300 homes went into default from July through September. We had been seeing a very flat quarter to quarter number of defaults. The most loans that went into default were by Bank of America with 7,979 properties, then Wells Fargo with 1,980, and Washington Mutual with 1,779.
There are still a large number of individuals that have not paid on their properties for over 2 years that have not been foreclosed upon. I really do not understand why the banks wait so long to start the process. Many of these people do not want to do loan modifications or short sales becaues they are living rent free. Now we have an increase of properties with default notices -19% more.