It's a bit of a milestone, the % of mortgages that are either in foreclosure process (2.64%) or 90 days delinquent (7.13%) has fallen below 10% in the Sacramento Metro area for the first time since the housing crisis hit. (See Sac Bee note on the new Corelogic data).
This combined rate peaked at over 15% in 2010 in Sacramento (peaked around 20% in Stockton/Modesto/Merced), so that is significant progress. At the current rate of decline, it will be down to 5% in 2014, and that is when I think we will start to see a more normal market with rising home values.
Historically, the normal delinquency rate is about 2% (and historically most delinquencies can be successfully resolved when people actually have equity in their homes).