FORECLOSURES PLUNGE; SOUTHLAND EMERGING FROM FUNK.Byline: Gregory J. Wilcox Daily News Staff Writer A robust economy and rising home prices during 1997 helped drive down foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. activity across California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). for the first time in at least five years, a real estate industry tracker said Friday. Last year, financial institutions initiated foreclosure proceedings on 141,180 residential properties across California, a 13.2 percent drop from 1996, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. La Jolla-based Acxiom/DataQuick Information Systems. Foreclosures plunged 20.7 percent in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County, 33.3 percent in Orange County and 31.2 percent in Ventura County. For the entire Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, region, foreclosure activity declined 19 percent. ``I think it's a very good indicator of economic improvement,'' said Tom K. Lieser, associate director of the UCLA UCLA University of California at Los Angeles UCLA University Center for Learning Assistance (Illinois State University) UCLA University of Carrollton, TX and Lower Addison, TX Business Forecasting Project. ``One of the last sectors to improve was real estate. When home values are declining, the owners will be under some stress, and with prices firming there will be less pressure on homeowner budgets.'' H.D. Palmer, assistant director of the California Department of Finance The California Department of Finance is located in Sacramento, California. It is responsible resource allocation for the state’s annual financial plan. As part of the executive branch of the state, it is within the fold of the governor of California's administration. , said the report signals more good news this year. For example, the decline in foreclosures could spur new home construction. The state projects 130,000 new homes being built this year, compared with 110,000 in 1997. ``We've definitely got a housing recovery under way. It's been a little late coming to the dance, but it's a lead indicator that you've got economic growth coming,'' Palmer said of new construction. He was especially encouraged by the improvement in Los Angeles County, where there were 41,515 foreclosures initiated last year, 10,806 fewer than in 1996. ``There had been a good number of foreclosures in the L.A. area, so to turn that around is a very good sign,'' Palmer said. DataQuick started monitoring foreclosure activity in 1992, when 100,573 notices of default, the first step taken in the foreclosure process, were recorded. Foreclosure activity is actually a lagging economic indicator lagging economic indicator An economic or a financial variable, the movements of which tend to follow the movement of overall economic activity. Thus, a lagging economic indicator would reach a peak after a peak in economic activity and would hit bottom because it signals financial distress Financial distress Events preceding and including bankruptcy, such as violation of loan contracts. up to a year old. ``Prices are going up now, and fewer homeowners will find they owe more on their property than it's worth. We expect foreclosures to decline significantly in 1998,'' Mike Ela, DataQuick president, said in a statement. The company monitors real estate markets across the country. San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. and Orange counties recorded the state's biggest drops in activity, both in the 33 percent range. Foreclosure activity increased last year in the Central Valley, although it is expected to drop there this year. It is important to all homeowners because markets with a significant number of foreclosed properties can have their prices dragged down. In 1996, foreclosed properties sold at prices 7 percent to 9 percent lower than nonforeclosure homes. Last year the gap declined to the 3 percent to 4 percent range, DataQuick said. DEFAULTS DECREASE Notices of default recorded on houses and condos: Los Angeles 1996: 52,321 1997: 41,515 - 20.7% Ventura 1996: 3112 1997: 2142 - 31.2% Southern California 1996: 109,122 1997: 88,417 - 19 % State 1996: 162,597 1997: 141,180 - 13.2% SOURCE: Acxiom/DataQuick CAPTION(S): Box BOX: DEFAULTS DECREASE (see text) |
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