Thursday, February 14, 2008

SoCal home foreclosures increase 433 percent

Quick math - 1,834 foreclosures times 12 = 22,008 foreclosures. In a county with 140,000 families in homes, this is going to get UGLY!


From Central Valley Business Times:

Homes plunging into foreclosure in Southern California in January increased by 433 percent over January 2007, according to figures compiled by Default Research Inc. of Mt. Pleasant, Pa., which markets foreclosure real estate data.

There were 9,885 homes in Los Angeles County alone that were in one of the stages of foreclosure last month, compared to 6,979 in December, according to Default Research.

Based on population, Riverside County was the hardest hit in Southern California in January 2008 with 8,554 new foreclosures for a foreclosure rate of 6.34 percent.

Kern County is also included in Default Research’s report Thursday. There were 1,834 homes in foreclosure in Kern County last month, a rate of 4.09 percent.

“The word recession has been all over the news for the past few weeks and it is vibrating off the mountains in several California counties,” says Serdar Bankaci, founder of Default Research. “Southern California foreclosures will continue to rise as more adjustable rate mortgages reset and people are unable to make their payments. Combine that with declining home values, the rising unemployment rate and the economic slowdown, and there are sure to be more foreclosures in the coming months.”

9 comments:

Funny Circus Bears said...

To repeat what CalculatedRisk has been saying for quite some time - if it becomes socialy acceptable to walk away from your home, all bets are off. Look out below.

I believe that not only will it become socially acceptable, it will be considered financially astute. The number of foreclosures will become mind boggling, with a market impact few can forsee.

From the White House on down, there are many Masters of the Universe thrashing around and spending ALL OF THEIR TIME trying to avert what they see coming.

sharpe721 said...

Were are these people going to walk to? There still going to need a roof over there heads.

Jason said...

Houses are renting for half what it costs to buy them all over California. They'll live in the home rent free for a year, because the banks are backed up in processing their foreclosure. Then they'll take their deposit and rent for awhile.

Lone Ranger said...

Why shouldn't a buried home debtor just walk away?

Why is such behavior considered unethical from an individual, but just "good business" from a corporation?

The LLC is merely a scam to avoid paying a fair share of taxes, while allowing risk taking with no worry of personal liability.

The Big Boyz walk away all the time, if it's best for their personal bottom line.

They take multi million dollar bonuses while the clients take massive losses.

The Money Changers and Middle Men scream bloody murder when the shoe is on the other foot.

Taking care of Number One works both ways.

Lone Ranger said...

http://globaleconomicanalysis.blogspot.com/2008/02/businesses-advised-to-walk-away.html

Perfect Storm said...

Freddie Mac, Roper Poll Survey Asks Why More Delinquent Borrowers Don't Call Lenders for Help
Nearly Two-Thirds of Delinquent Borrowers Say They Are Unaware of Workout Options

Even if there was a bail out plan that actually would work not this political good will bullshit we hear about, it would fail because 75% of people who are ass backwards in a mortgage due to SUBPRIME MORTGAGE BROKER SCUM are too lame to even know they may have some hopeless option.

If you are upside down in your home just walk away and give it to the bank, just think how corporate America has done it for decades, why suffer just leave and give your lender a wrong phone number.

Were right on track for a 50% decline by 2009.

vietvet said...

when bush stopped the lenders from issuing 1099's on reo or short sale deficiencies (considered income by the IRS) this created an incentive to walk from an overvalued property as the fear of the tax consequence was eliminated.....poor,poor decision.....well, well ! if i am still paying my upside down mortgage and my credit is still reasonable, lets have the realtors play the next game. instead of being 100k in the hole, i will go out and buy a bigger, better house that is under forclosure and try to buy it at 60% of its present mortgage value.....of course i will claim to rent out my present house on the loan application....if approved and the loan closes, i can then walk away on the prior house....i have got out of a negative equity situation and have no tax consequence.....whew !

Realestateslasher said...

If every 10 years we see this trind and we just starting att the bottom of the new trend can somebody please show me some Charts and Grafs from the 30 Years?

COACHING BY PETER said...

This article is very timely and relevant. As I quote Cameron Muir, an economist, "Home sales are unlikely to fall much further..That being said we expect home sales not to decline much further."

But it's never too late, with the right business plan set up, it will lead to valuable outcome. This is what most counselors would give as an advise.