IS EVERY HOME IN SAN DIEGO IN FORECLOSURE?

It seems like every time one picks up a newspaper today, there are headlines about the dismal foreclosure rates. Pretty they are not, but one important fact that the newspapers never report is the number of trustee sales. A trustee sale is the end of the process in the foreclosure procedure. What the paper reports is only the number of NODs. NOD stands for notice of default.  A notice of default starts the foreclosure process. A trustee sale ends the process with the bank taking back the property in default. Not all properties that receive a NOD make it to the trustee sale. That is because the homeowner cures the default. They pay the bank what is owed in arrears and the homeowner stays in their home. So you may see that there are 3,000 NODs one month, but probably half of those will go to a trustee sale. Make no mistake about it, 3,000 NODs is a high number. Historically one would probably see no more than 200 or 300 NODs in a month even in the best of times. Yes, there are foreclosures in a stable market. Take a look at the NOD rate and Trustee Sale rate for 2008.

There is also a misconception that all areas of the county are experiencing large foreclosure rates and huge price declines.  While foreclosures and price declines are no stranger to all parts of the county, there are certain zip codes that are bearing the blunt. Many zip codes have very few foreclosures, while others have hundreds. The entire county is experiencing to some degree price declines. But again many areas have not experienced sharp declines. Price declines should not surprise anyone. It was bound to happen. It was just a matter of time.

No mater what cycle the real estate market is in, there are buyers and there are sellers. And that holds true today. Loans are available, but times have change. You actually have to prove you have the income to successfully make mortgage payments.