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California Foreclosures Continue to Surge

More foreclosures are expected to occur in California, particularly in the counties of Miami and Los Angeles. Although there was a slight decline from last quarter, the rate of California foreclosures is still definitely higher than that of last year.

In Miami, auctions on foreclosed properties rose by 18 percent from last year, with 2,290 properties. Likewise, Los Angeles experienced an increase with 11,232 properties. This is 69 percent higher than the previous year.

There is still a long way before the country sees an end to forclosures. Unfortunately, the economy has not yet recovered from a bad shape and people are constantly losing their jobs and defaulting on their mortgages.

The decline from last quarter to the present is not necessarily a good sign. What are more significant are the yearly increases and not the quarterly drops. Also, the 10-percent decrease in Miami and 29-percent in Los Angeles can be credited to the holiday and election seasons rather than a recovering economy. Government and business transactions decelerated during that period.

From 2002 to 2006, the housing market was in a surge. The constant increase was attributed to risky lending. Also, speculation played a significant role. After that period, however, a constant weakening was witnessed. Defaults in mortgages started to increase in number, particularly by subprime borrowers. The subprime crisis definitely brought about a bad economy.

In New York City, foreclosures increased by 25 percent with 764 cases. It has experienced an increase year over year. The increase can be attributed primarily to the rise in Queens where cases of subprime lending is dominant.

On the other hand, the housing market in Seattle has been stabilizing over the past few quarters. There was a drop by 12 percent from last year with only 318 cases.

There are still high hopes that the economy could recover from this turmoil. Long-term measures must be adopted to completely recover from the foreclosure crisis.

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• Sales Skyrocket in Southern California Foreclosures
• Foreclosures Crisis Hitting Everyone Including the Affluent
• Southern California’s Median Home Price Falls 41 Percent Due to Foreclosures
• Difficult Times Ahead Due to Increased Home Foreclosures