Thursday, May 04, 2006

Riverside CA Defaults Up 64%

The North County Times has this on area defaults. "More lenders moved to foreclose on homes in Riverside County, reflecting continued cooling in a market that was still sizzling a year ago. Mortgage lenders sent 2,148 notices of default to property owners in the first quarter, up from 1,607 in the fourth quarter, and 1,307 in the first quarter of 2005, according to DataQuick."

"That year-on-year increase of 64 percent was more dramatic than in any other large county in California. And the number of notices issued was larger than any other county except Los Angeles."

"Analysts have said the recent trend underscores buyers' tendency into last year to use risky mortgages. Interest payments on variable-rate loans are beginning to rise while home values are rising at a slower pace, providing less cushion for homeowners who have little equity to bail themselves out of a defaulted mortgage before foreclosure proceeds."

"Analysts have generally said that Riverside County's higher number reflects its status as a prime destination for first-time home buyers, who are, on average, less financially stable."

2 Comments:

At 4:16 PM, Blogger chickenlittle said...

Add in the likely fact that those folks tend to live furthest from the workplace means that they have rising transportation costs.

 
At 2:02 PM, Blogger John Mc said...

& Riverside to Downtown is one heck of a drive 5 days a week. Its not looking pretty.

 

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