Are foreclosures easing in San Diego County?

Both completed foreclosures and the number of San Diego property owners who started the foreclosure process increased in January from the end of 2011, but those numbers are down compared to figures from a year ago, real estate tracker DataQuick reported Tuesday.

San Diego County recorded 726 foreclosures in January, up 2.3 percent from December but down 24.3 percent from January 2011, the latest numbers show. The county's peak was 2,004 in July 2008.



The movement of foreclosures, which depend on the banks, have long been erratic. But by analyzing the average number of foreclosures in certain time increments, it appears that foreclosures may be easing. (Please refer to the first table.)

The same thing may be happening with notices of defaults, the document that signals the start of a foreclosure. (Please refer to the second table.)

There were 1,407 default filings in January, up 13 percent from December but down 9.1 percent from January 2011. The county is about 63 percent below its default-notice peak of 3,832 in March 2009.

DataQuick analyst Andrew LePage said the short- to mid-term view of the distressed market in San Diego is "cloudy."

The long-term picture, however, "continues to brighten slowly" alongside slight job growth and fewer mortgage delinquencies.

Another new factor in the world of foreclosures is a recently announced settlement involving 49 state attorneys general and the country's Top 5 banks over questionable foreclosure practices, LePage added.

The $25 billion mortgage settlement, which still needs judge approval, could help about 466,000 Californians by reducing principal balances, refinancing mortgages and offering restitution in cash.