Los Angeles County Foreclosures Up By 25.7 Percent

November 4th, 2008

Los Angeles County foreclosures has gone up by 25.7 percent during the third quarter in comparison to what it was a year back during the same time. However, the number of defaulters in the real estate scene has gone down for the first time over three years. A total of 17,073 homeowners have received a notice of default from the lenders on their properties during the third quarter. The total number of homes that received a foreclosure notice in 2007 during the third quarter in Los Angeles County was 13,583. The homeowners are at real stake due to foreclosure on their properties.

The homeowners that received a foreclosure notice on their homes in Orange County are 5,692 in number. This indicates a 46.6 percent increase from the figure of third quarter of 2007 that stood at 3,882. About 94,240 homeowners were sent a default notice on their homes statewide during the third quarter. This figure points towards a decline of nearly 22.5 percent from the figure that was there in the previous quarter. However, it is a 29.9 percent increase when compared to the scenario during the same quarter a year back. Last year, about 72,571 default notices were sent to the homeowners.

The decrease in the number of foreclosure filings in the third quarter is mainly due to the newly introduced state law that took effect in the month of September. If the law was not introduced, then the number foreclosure instances could have gone up heavily. It could have even crossed the record of the second quarter. According to real estate expert John Walsh, “What’s interesting is that the surge in activity certainly did level off during the second and third quarters. A lot of the market’s distress is working its way through the system and the spectacular jumps in activity may be behind us. Or it may be that those processing the default paperwork are just maxed out.”

Home foreclosure problem do not always stem from the default notices sent to the homeowners. About 20 percent of the homeowners egress from the process of foreclosure by going with refinancing, making their payments current, and by involving into a sales activity in the real estate area. Foreclosure not only affects the homeowners but also badly affects the economy of a particular region. It brings down the prices of home not only in that area but also in the surrounding places.