Increase in the Number of Foreclosures of Homes

Foreclosures of homes and notifications of loan defaults took a leap by approx 10% in the month of June. This rate was almost 55% higher compared to the figures last year. However, in Glendale, Burbank and La Cañada Flintridge the rates seem to be lower than the average rate of Los Angeles County and California as per the estimates of the RealtyTrac, the property firm. As a matter of fact, 62 of every house countrywide faced foreclosure since the initial half of 2009, but only 1 out of 110 homes in Glendale faced foreclosure.

In Burbank the rates were comparatively better as approx 1 of each 111 houses experienced foreclosures and in La Cañada, out of 148 houses 1 home got foreclosed as per RealtyTrac. Though the foreclosures in the area numbering to 424 including default notices were higher in frequency compared to last year June’s records showing only 274 foreclosures., the current records show more stability in home values has been attained.

The local house owners got more flexibility during negotiation with the banks as the prices did not feature any drastic falls. Daren Blomquist, a RealtyTrac representative commented that, “Usually the markets with the lower foreclosure rates are standing up a little bit better in this environment that we’re in and are holding their values better so that homeowners who are in distress have some more options to avoid foreclosures.”

Compared to Los Angeles and Orange counties the prices of homes are not deteriorating drastically. Banks are now stricter during loan issuing. Contrarily due to lesser new projects of construction compared to the ones in communities in Southern California, the home demands have stayed stronger and controlled the falling of prices as observed by Soderstrom. Soderstrom observed that, “When the wheels came off the market a little bit, that wasn’t as drastic [locally].”

The rates of foreclosures in Glendale and Burbank have remained quite higher as compared to the national average featuring foreclosure of at least 1 out of every 144 homes as noticed by the RealtyTrac. However, the low foreclosure rates have certainly aided in preventing the regional prices from falling or any kind of alteration. This has in return kept the region profitable for the buyers of homes. This trend was noticed by Kendyl Young who is acting as a private property agent.

Kendyl Young has further observed that, “If we have a lower foreclosure rate, it means our property values are maintaining and I think that does make it more desirable.” Soderstrom observed that the occurrence of foreclosures invariably has a negative impact on the families in the neighborhoods as the falling prices effect the prices of the properties nearby.

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