The Foreclosure Report

'Average Joes' Defaulting In LA

A report on foreclosures in California. "The number of foreclosures in Los Angeles County increased by 63 percent in the first quarter of 2006 compared to 2005. 'With rising interest rates, the economy slowing down in that part of California, and a quarter of L.A. residents working at jobs that do not pay a living wage, the significant increase in foreclosures is a very alarming trend in the largest county in the nation,' said Serdar Bankaci."

"Bankaci also noted that single family homes and duplexes were hit the hardest, increasing 77 percent and 88 percent respectively, underscoring the tough battle that the average L.A. homeowner faces to retain their property."

"'The rising foreclosures are due to the 'average Joe' buying a house he cannot afford because of inflated home prices. Then, with the rising interest rates, he cannot pay for the mortgage,' said Bankaci. Many of the homeowners used 'aggressive financing' to buy homes they could not afford."

posted by Ben Jones @ 11:20 AM