3Q 2011 defaults and foreclosures

Thanks primarily to the Lesser DepressionThe period from 2009-2016, characterized by persistent slow job growth and low home sales. of California’s jobless recovery which continues to drive foreclosures, 34% of all California home resale activity in the third quarter of 2011 can be attributed to real estate owned propertyProperty acquired by a lender through foreclosure. (REO) inventoryProperties available on the market through the multiple listing service (MLS). — down a scant 1% from the second quarter but nearly the same as one year earlier.

71,275 Notices of Default (NODs) were recorded in California in the third quarter of 2011, down from 83,261 one year earlier. The largest numerical drops in NODs issued took place in Riverside (-2,059), San Bernardino (-1,925), Los Angeles (-1,822) and San Diego (-821) counties.

NOD volume peaked in the first quarter of 2009 with 135,431 NODs recorded.

Also in the third quarter of 2011, 38,895 homes were taken by trustee’s foreclosure sale. This is down from 42,465 in the second quarter, and noticeably lower than the 45,377 homes foreclosed on one year earlier.