According to the OC register more than $147 million in due taxes were not paid by the December 10th, 2007 due date. That is 6.44% of the total $2.28 Billion due versus a year ago the delinquent amount was 4.72% for a total of $99 Million past due. Tax Collector Chriss Street says this is an obvious sign "how stressed the real estate market is."
Other signs of homeowners in trouble: mortgage default notices sent out by lenders to tardy mortgage borrowers and actual foreclosures are also on the rise in Orange County. DataQuick has reported that defaults were up 128% in 2007's first 11 months vs. the previous year; foreclosures soared 568%.
This is just another sign that the housing market in Orange County has further to correct which will create more opportunities for buyers and investors in 2008.
Hi Zen: I personally know several people who have not had the money to pay their real estate taxes. They feel they are up against a brick wall as far as paying them. I think that is becoming more and more of a problem for folks with the 80/20 loans that do not establish escrow accounts to pre-collect the taxes. Most folks just don't save the money to pay them.
Perhaps, if we had some of that tax money we wouldn't have as large a deficit here in CA.
I keep wondering how many homes have simply been abandoned and the banks just haven't gotten around to doing the paperwork. I know of a few where the owners simply locked the door and left and nothing has happened after 6 months...no sign for sale as an REO and no notice of foreclosure.
Banks must really be behind and yet it looks like they are cutting back on staff. Doesn't make a lot of sense.
Zen Ziejewski
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Very nice stats. I agree this will continue for a while. It will be interesting to see when income tax data comes out in a few months.