Foreclosures in Calif. expected to rise

[UpInArms]

http://feeds.bignewsnetwork.com/?sid=b40377ecfff7a827

California realty markets may see an upsurge in mortgage defaults, a foreclosure tracking Web site said Monday.

Alexis McGee, Foreclosures.com president, said: "Affordability is the key issue now. Only 18 percent of California households can afford a median-priced home in our state.

Sales volume was dropping off in several southern California markets, Foreclosurers.com said, most notably in Orange County, where sales fell by more than 27 percent year to year. In Ventura County a drop of almost 19 percent was seen, and in Los Angeles County, volume declined by 7.8 percent.

McGee reported that in the third quarter of 2004, 3,697 homes in Los Angeles had entered the foreclosure process. That's close to second quarter activity, and about as low as it gets in that market. She added that the situation in the north was similar. In eight of nine Bay Area counties, we saw third quarter default filings of 2,888, up from 2,573 from the previous quarter.

...more...

[Worst Username Ever]

1. You know they will blame this on prez Kerry. Christ.

[Anakin Skywalker]

2. Ah Hah Hah Hah!

Looks like the housing bubble is about to burst! So much for Bush and base's faith-based economics :)

[PROGRESSIVE1]

3. See what the Bush/Schwartzenegger economy has done!!!

[Mountainman]

4. We all saw this coming last year.

I remember DUers talking about people who were borrowing more than their incomes could support to by houses that were over priced do to a hot real estate market.

[Carla in Ca]

5. My husband is a broker (30 years)

and he attributes this problem to one main issue. The lenders introducing programs that allow 100% financing of home mortgages. There is no down payment required, but that means the payments are high and there is no equity.
If the house becomes non affordable, they just walk away.
Wall Street wants profits.
We noticed * bragged, at the last debate, that home ownership is at an all-time high. He can say it, but it is a false positive and I know he does not have any knowledge to be able to correct it.

[LibDemAlways]

6. Housing prices here are so inflated that

I'm surprised the bubble has lasted this long. Three years ago I had my house on the market briefly at $350,000. This is a 3 bedroom/2 bath 1700 sq. foot 25 year old non-descript tract home in a suburb outside LA. I received several offers, but my circumstances changed, and I decided to stay put. Now, a house just like mine down the street is on the market for $650K, and it isn't moving. Another one on the block did sell for $599K last winter, and those people are mortgaged to the max. They have 100% financing, and little if no equity - just the kind of situation that's likely to lead to a foreclosure. There are a lot of for sale signs all of a sudden -- people wanting to cash in big equity before it's too late, as it probably already is.

[scavok]

7. Anecdotal evidence from Colorado

I have a friend who is a loan officer. She was telling me yesterday that she is now behind on her mortgage because she works on straight commission and there is no business out there.

She also mentioned that foreclosures in our county have doubled in the last six months and the sellers she does have must bring money to closing to get out of their current mortgages.

[RainDog]

8. A few days ago the same news about Las Vegas

and the deficit will make interest rates rise, if the current situation is an indicator...and it is.

"Our long nightmare of prosperity is over." -Nukular George

[bleedingheart]

9. Ah those "interest only loans" are starting to pay off...

All of my friends that mortgaged themselves into hell are now in for a bumpy ride...