• Posted on Tuesday, April 22, 2008
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California home loan defaults continue to mount

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Banks repossessed nearly 5,300 homes in the Sacramento area during the first three months of 2008, setting a record and pushing the region's foreclosure tally to more than 15,300 since the beginning of 2007, a California property research firm reported Tuesday.

Statewide, DataQuick reported 47,174 foreclosures during the first quarter — triple the foreclosure peak of 15,418 during the 1990s real estate downturn. That figure came in the third quarter of 1996, according to DataQuick. DataQuick also reported 113,676 default notices statewide, up nearly 40 percent from the fourth quarter of 2007.

The firm attributed foreclosures to falling home values that have made it impossible for many to refinance or sell their homes to escape financial problems. DataQuick noted that because of falling home prices only about 32 percent of those who default on their home loans are able now to save their homes. Six months ago about half were able to save their homes, the firm reported. As recently as August 2006, DataQuick said 95 percent were able to find solutions outside foreclosure.

Read the full story at sacbee.com.

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