Los Angeles Foreclosures Is On The Rise
December 10th, 2007 by 
Joseph Smith
During the first quarter of 2007, Los Angeles foreclosures jumped by 24% and have added to the ever increasing list of foreclosed homes in the US. One of the primary reasons of a high rate of foreclosure in Los Angeles is due to the home equity loans. There are many homeowners who have taken a loan against the equity of their home to pay off other loans or even credit card bills. At the end of the day they stand face to face with foreclosures.
The other key factor is the subprime loans, which has led to the increase in the number of foreclosed homes. These loans are being issued at a rate, which is higher than the normal interest rate and varies between 5% and 6%. With such a high interest rate, it is no surprise that many people have failed to pay their loan and are now facing foreclosure. California foreclosures went up by 48% in July with a rate of one filing per 224 homes and landed up on the top of the table with 57,875 foreclosed homes.
This kind of a steady rise is bothering the Mayor and other responsible people of the State. In view of the threats presented by this kind of a volatile market, Short Sale Service, Inc., a leading mortgage debt negotiation company, is arranging a workshop in Los Angeles. The workshop will primarily address the current situation and throw light on mortgage crisis as well as Los Angeles foreclosures. The company feels that there are several ways of going around a foreclosure. The workshop will address homeowner issues and provide solutions for real estate agents, homeowners, and investors who are associated with foreclosed homes.
This kind of a workshop has become important especially in the face of a rising rate of foreclosures in Los Angeles. One of the eminent speakers will be Attorney Ben Pargman who is also the national speaker, specializing in pre-foreclosure Lender workouts, which are also called Short Sales.
In December of 2006, Los Angeles recorded filing of 2,350 properties but 2007 started with 2,648 filings in January. The high number of Los Angeles foreclosures had an impact on the total number of filings in the State of California and showed an increase of 22% in new foreclosures and 45% increase from the previous year. Hopefully, the workshop will control the reins and help homeowners to fight against this problem because it hurts the economy of the city and state too.
