Loan Defaults are Increasing in San Diego.

Data Quick Information Systems  estimate there are 700,000 to 750,000 outstanding loans in San Diego County. (excluding duplexes,triplexes and apartments). As of the end of the full 1st quarter of information statistics, 10% of these loans were from the sub-prime market and nearly 13% of these loans were past due by at least 60 days.

How did this Happen?

Many of the sub prime loans were sold to borrowers when home prices were escalating. These creative loans required little or no documentation of the borrows ability to re-pay these loans. Some of these loan types  are now categorized as predatory-like  in nature as the loan brokers fixated on making the sale with little regard to the borrowers. The borrowers believed there was no downside and that prices would continue to move-up.