Data: Foreclosure Activity Falls in I.E.
Rebecca U. Cho, Staff Writer
Created: 05/13/2010 07:41:28 PM PDT
National foreclosure activity fell last month on an annual basis for the first time in four years, with the Inland Empire’s filings dropping by a quarter from March, according to data released Thursday by a firm that tracks foreclosures.
But the latest numbers most likely reflect a stronger crackdown on foreclosures nationwide rather than an improvement in homeowners’ abilities to pay their mortgages, industry observers said.
“It’s a sign of the times that there’s a huge response to minimize the number of foreclosures overall,” said Brad Kemp, director of regional research at Beacon Economics, a San Rafael-based think tank.
Foreclosure filings fell by 2percent in April from the same period a year before, according to RealtyTrac, which collected data from 2,200 counties nationwide. That was a 9percent drop from March.
In San Bernardino County, foreclosure filings fell 25.7percent in April from the month before to about 5,900 filings.
But government programs, such as the federal Home Affordable Foreclosure Alternatives Program, which went into effect in April, probably contributed to the decline, industry observers said. HAFA pays incentives for short-sale or deed-in-lieu of foreclosure agreements.
“There’s a lot of things happening that’s propping up the market and helping foreclosures to subside,” said Daren Blomquist, RealtyTrac’s marketing communications manager. “To me, this is a fragile trend we’re seeing. It can be upset if some of those government props go away or if the market faces more trouble from other areas.”
Kim and Kris Darney, Ontario-based real estate agents who focus on short- term sales, said housing conditions continue to be bleak in the region.
“I believe those numbers are somewhat of a false hope for the Inland Empire,” Kris Darney said.
The Inland Empire became a poster child for the foreclosure crisis after a housing market boom incinerated under the subprime lending debacle. By January, the city of Fontana had spent more than $1.7million in federal funds on rehabilitating foreclosed homes under President Barack Obama’s 2009 federal economic stimulus.
The Darneys said they see more banks allowing homeowners to sit on their property without making payments, which they attribute to the decrease in foreclosure filings.
“They’re letting people hang out in their homes right now,” Kim Darney said. “They don’t want more (foreclosures) in their inventory.”
California continued to lead the nation in the total number of foreclosure filings with about 69,700, according to RealtyTrac. San Bernardino County had the sixth highest foreclosure rate in the state. Riverside County ranked third.
rebecca.cho@inlandnewspapers.com
909-483-9391
