Foreclosures rose to record levels in figures released Tuesday -- but amid the gloom were glimmers of hope.
The number of households in Fresno County that defaulted on mortgages last quarter more than doubled from a year ago, La Jolla-based DataQuick Information Systems reported.
The online tracking service said the 2,821 default notices represented a 104.4% increase from the April-to-June period in 2007. Statewide, the number of filings soared almost 125%, with the San Joaquin Valley seeing some of the largest increases. Those included 201.6% in Merced County, 169.4% in Stanislaus County and 141.8% in San Joaquin County.
Last quarter's defaults were the highest in DataQuick's records, which go back to 1992. The good news is that, statewide, the number was up only 6% from the first quarter, which could indicate foreclosures are peaking or that more homeowners are working out their problems with lenders, DataQuick officials said.
"The small increase in defaults from the first to the second quarter may indicate that we're nearing a plateau," John Walsh, DataQuick president, said in a statement. "We won't know until the end of the year, but it may be that some lenders are starting to prioritize workouts with homeowners instead of grinding things through the foreclosure process."
About 22% of California households heading into foreclosure are able to sell their homes, become current on their loans or otherwise avoid losing their properties. Still, three of every four houses sold in Merced County last quarter, for example, were foreclosures.
The northern San Joaquin Valley and Riverside and San Bernardino counties continue to struggle the most. "Areas that absorbed spillover activity during the boom cycle in 2006 seem to be hardest hit," Walsh said.
Fresno County hasn't been hit as hard but still has the 12th highest foreclosure rate in the nation. "No. 12 is not the position we want to be in," said Dawn Golik, operations specialist for the federal Housing and Urban Development office in Fresno.
Golik made the comment Tuesday when she briefed the Fresno City Council on the growing foreclosure crisis. HUD is participating in a coalition that works with homeowners, real estate professionals, lenders and others in an attempt to minimize the fallout from the escalating foreclosure crisis.
The group updates the Fresno City Council quarterly. On Tuesday, council members learned that 50% of the families that lose their houses to foreclosure never seek help, that 64% of the Fresno households who received a notice of default in February lost their houses in May and that banks take over about 300 properties monthly.
Help is coming from a variety of resources, including credit-counseling services and other agencies that have joined forces through the No Homeowner Left Behind program.
The agencies have sponsored free workshops for homeowners, including one last month held by the Fresno Redevelopment Agency. That event drew 325 people.
The assistance is vital to homeowners, many of whom don't know how to get help. "They call lenders and are put on hold for 15 to 20 minutes or sometimes an hour and don't know what question to ask," said David Martin, redevelopment agency project manager.
One of the agencies, the Community Housing Council at Manchester Center, has helped 518 people since January. But not everyone is able to stay in their home.
About 60% of the people who visit ByDesign Financial Solutions don't have the income to stay in their homes. But that doesn't mean a foreclosure will occur. The counselors can help homeowners sell the house, in addition to other assistance.
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