Today’s Bulletin reports that local default notices are off the charts:
Notices of early default, which are typically filed when borrowers fall three or more months behind on their house payments, rose 245 percent in April over April 2007, according to data from the Deschutes County Clerk’s Office. There were 114 pre-foreclosure notices filed last month. In the first four months of 2008, default notices are running 261 percent ahead of the same period a year ago, hitting 437 for the period. In the first week of May, 53 notices were filed.
What I want to know is, “how are local banks handling this surge in defaults?”
Bank of the Cascades is telling us their default rate is running less than 1% of their local portfolio. How can this be?
Rhetorical question: it simply can’t be. And investors know it.
Deschutes default notices are soaring