Home News Ugly turn or merely moratoriums ending? – Orange County Register

Ugly turn or merely moratoriums ending? – Orange County Register

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“Looking Glass” ponders economic and real estate trends through two distinct lenses: the optimist’s “glass half full” and the pessimist’s “glass half empty”.

Buzz: The number of foreclosed homes surged 116% in one year in California. This is because the restrictions for lenders to compete against seriously delinquent borrowers have ended. The US numbers were even higher, jumping 153%.

Discussion: Is the high-profile spike in foreclosure activity a sign of financial trouble? Or is it just a return to more normal levels of borrower extortion as pandemic-era homeowner protections expire?

sauce: My trusty spreadsheet spied on the house somewhere in the foreclosure process First half of 2022compiled by real estate data tracker ATTOM.

top line

California ranks second in the nation, with 16,340 homes in foreclosure proceedings. Florida topped the list with 17,624 home loans in trouble. California was followed by Illinois with 14,086, Texas with 11,527 and Ohio with 11,028.

glass half full

Let’s look at that level of problem borrowers compared to the total housing unit count.

Using this frequency measure, California ranked 14th with 854 homes nationally, compared to every 881 homes foreclosed statewide. Commonplace? Every 385 homes in Illinois have a troubled tenant, followed by New Jersey with 410, Ohio with 475, Delaware with 497, and South Carolina with 513.

Where are foreclosure filings rarer? South Dakota leads with 1 in 9,068, Vermont with 7,598, North Dakota with 4,466, West Virginia with 3,626, and the District of Columbia with 3,539. continued.

California’s biggest rival Texas was 19th with 1,005 and Florida was 6th with 560.

glass half empty

Given the opportunity, lenders are taking action after about a two-year foreclosure moratorium. California ranked just 36th, with foreclosure activity up 116% compared to his first half of 2021.

The biggest jumps were in Colorado at 595%, followed by Michigan at 497%, Minnesota at 268%, New Jersey at 245% and New York at 227%.

The best performers were Alaska with a 1% decrease, followed by South Dakota with a 2% increase, Kentucky with a 12% increase, North Dakota with a 43% increase and New Mexico with a 48% increase.

Texas rose 187% to No. 6 and Florida rose 124% to No. 28.


ATTOM analyst Rick Sharga notes that current foreclosure activity is 40% lower than what is considered a normal pattern.

another number

Looking ahead, CoreLogic reported that 1.9% of California mortgages (30 days or more arrears) had some problem in May, half of the 3.8% in May 2021.

A similar pattern was seen in the state’s metropolitan areas. In Los Angeles-Orange County he was 1.9%, down from 4.1% last year. Inland Empire, 4.8% to 2.6%. San Diego, 3.4% to 1.6% San Francisco, 2.8% to 1.3%.


Lenders’ generosity and government support have given financially distressed renters plenty of opportunities to avoid losing their homes as the coronavirus has cooled the economy.

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