Los Angeles Foreclosed Homes Rising Steadily in 2008

Time icon April 25th, 2008 by Autor Joseph Smith

The Los Angeles foreclosed homes market continues to grow in 2008, as new statistics are indicating that first quarter foreclosures were up 130% over the first quarter of 2007.

Experts attribute the main cause of the rising rate mainly to the fact that home values have fallen off so drastically in the past few years. When the market was booming, people took out mortgages on properties at extremely inflated rates, and when the market fell back to earth, these buyers were stuck making payments on loans that were much higher thahn the current value of their property.

Coupled with the effects of the economy hovering on the brink of a recession, this has led to many homeowners being unable to keep up with those payments. Unfortunately, selling their home is not an option, as they can no longer get anywhere near what they paid for it. Therefore more and more properties are showing up in Los Angeles foreclosure listings, and the market for buying Los Angeles foreclosed homes at auction is growing exponentially.

Defaults in the first quarter topped 20,000, and this is the first stage of the decline for many Los Angeles foreclosed homes. California is also seeing more homes that go into default end up becoming foreclosures, so we could see the numbers rise even more drastically by the end of the year.

Buying now can be a great time to get into the market for rock bottom value, but be sure you get the right mortgage plan.

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