According to the LA Times, 1% of California homeowners entered the foreclosure process in the first quarter of this year:
Sinking home values and the collapse of flimsy mortgages sent a record number of California homes into the foreclosure process in the first three months of this year, a real estate information service reported today.
Default notices — the first stage of foreclosure — were sent to owners of 110,000 California homes from January to March, about 1% of the homes in the state, according to La Jolla-based DataQuick Information Systems. Default notices were up 143% from the same quarter a year ago.
1% doesn’t sound like much but considering the number of homes already in foreclosure and the probable duration of the real estate/mortgage malady it’s very easy to imagine 10% of the state facing foreclosure.
It’s hard to imagine, then, that the 10th largest economy in the world will avoid a very hard recession.
California homes entering foreclosure hit record
Peter Y. Hong
Los Angeles Times