The latest figure is the highest number in DataQuick's statistics,which go back to 1988. "The Bay Area in the greater scheme of things is actually pretty well off, and even in this cycle won't have much of a foreclosure problem," said John Karevoll, a DataQuick analyst. Karevoll pointed to Sacramento County, with 3,840 reported mortgage defaults in the second quarter, as an example of a truly high number.
Why the huge jump in default notices? Many Californians with adjustable-rate loans found themselves with higher payments as mortgage rates jumped to an 11-month high, while more stringent lending standards limited their ability to refinance, said Yongheng Deng, an associate professor of real estate finance at the University of Southern California.