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California Home Foreclosures Reach an
All-Time High!!
In a PR.com press release found on Google News, Default Research (the fastest growing foreclosure research company in the nation) reports that California foreclosure filings are up a dramatic 300 percent in August, compared to the same time last year. California home foreclosure rates continue to rise as borrowers are searching for fixed rate mortgage loans to replace their adjustable rate nightmares.
RealtyTrac reported that California cities had six of the top 10 metro foreclosure rates in August. According to Default Research, Los Angeles County foreclosure filings led the state with 6,040, which is up 2,047 from August 2006. Riverside and San Bernardino followed L.A with 3,780 and 2,058 foreclosures respectively. San Diego County recorded 4,845 foreclosure filings in August, which represented a year-over-year increase of 247 percent. And, nearly 9,500 California properties were sold in foreclosure auctions in August, according to ForeclosureRadar.com.
t's sad to see, but the number of California foreclosures is reaching an all time high in 2007. Adjustable rate mortgage payments combined with decreasing home equity and tighter mortgage lending guidelines, subprime mortgage lenders going out of business and even conventional lenders going bankrupt have all contributed to the loan defaults and California foreclosures.
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California foreclosures are peaking as homeowners are unable to refinance their homes because of loss of equity. |
"Using the National Association of Realtors[R] dependable statistics, we can expect existing-home sales to continue to decline up and down the California coast in the coming months as mortgage disruptions work their way through the housing market. Combining the increasing home inventories with the continued ARM adjustments, it looks as if the problems in California will not be going away anytime soon," says Serdar Bankaci, President/CEO of Default Research Inc.
Others, like Richard Mehren, a longtime real estate agent in central and inland North County, remain optimistic that the housing situation will improve locally and around the country. He noted that the Federal Reserve cut its benchmark interest rate by one-half percentage point yesterday, which should make credit easier to obtain and may further ease the pain for some homeowners with adjustable-rate mortgages. In addition to that, the Bush administration recently announced the FHASecure plan, a temporary measure put in place to help homeowners facing foreclosure. Whether or not these measures will help remains to be seen.
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