Wednesday, January 23, 2008

California loan defaults hit 15-year high

Default notices were up 114 percent in the fourth quarter - compared to 2006 - the highest level since 1992, says report.

The number of California homeowners who fell behind on their mortgage payments surged in the fourth quarter of 2007 to a 15-year high, heightening the possibility of a jump in foreclosures, a real estate research firm said Tuesday.

A total of 81,550 default notices were sent to homeowners statewide between October and December, up 12.4 percent from the previous quarter and an increase of more than 114 percent versus the same quarter in 2006, according to DataQuick Information Systems.

Last quarter's tally of default notices is the highest recorded by DataQuick, whose records go back to 1992.

The notices serve as an early indicator of possible foreclosures.

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