The Foreclosure Report

Over 5,000 NOD's In Riverside Co.: Q4 2006

The North County Times in California. "Foreclosure activity in Riverside County continued to rise sharply in the last three months of 2006, reflecting overstretched buyers and flattening real estate values, according to a research firm."

"Lenders sent out 5,329 notices of default to home buyers who had fallen behind on their mortgages, up from 1,835 in the fourth quarter of 2005. The notices of default sent out in the fourth quarter include several dozen that went to participants in an unusual real estate investment group centered in Murrieta, according to signed declarations filed last week as part of a civil lawsuit."

"The plaintiffs allege that a Murrieta mortgage brokerage suckered them into buying multiple homes with inflated mortgages and then pocketed the difference in cash, in some cases about 20 percent of the legitimate value of the homes, according to court documents."

"The suit names 11 plaintiffs who said they each bought between two and 10 homes under the arrangement. Many of the plaintiffs have defaulted on multiple mortgages."

posted by Ben Jones @ 3:22 PM