Monday, December 19, 2005

Southern California Defaults Rise

A foreclosure tracking firm has this on California. "A Fair Oaks CA real estate information publisher reported today that a predicted increase in notice of default filings in the Golden State had begun. 'We saw increases in defaults month to month at the end of the third quarter in eight of thirteen northern California counties that we cover,' said FAlexis McGee 'and in four of five southern California counties.'"

"Ms. McGee went on to say that many factors were converging to put homeowners at risk of possible foreclosure, citing the steady rise in interest rates, the flattening of the price appreciation curve, and the increased use of high risk loans by homeowners seeking to qualify for ever more expensive homes."

"She added, 'we're seeing flat appreciation in San Francisco, and even a slight decline in prices. In Orange County, prices dropped $4000 in October, for the second consecutive month. Defaults at the end of the third quarter, reached 1000 versus 582 in the third quarter of 2004. That's almost a 42% increase.'"


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