CALIFORNIA FORECLOSURE ACTIVITY RISES!

The number of mortgage default notices sent to California homeowners increased during the second quarter of 2006, rising 10.5 percent from first quarter, according to a recent report by DataQuick Information Systems.

Lending institutions sent default notices to 20,752 homeowners between April 1 and June 30, up 67.2 percent when compared with the 12,408 default notices sent during the same period one year earlier.

While second quarter's foreclosure activity hit the highest level since first quarter 2003, default notices still remain below the historical average of 32,762 per quarter.Declining home price appreciation was the major contributor to the increased default activity last quarter, according to the report.

While nearly all regions of California experienced an increase in foreclosures, mortgage loans were least likely to go into default in Marin, Santa Cruz, Santa Clara, and El Dorado.

**Taken from the California Association of Realtors Bulletin, dated August 9th, 2006.