California 2nd Quarter Foreclosure Rate Rises By Highest Margin in 14 Years

Posted in Foreclosure, August 31st, 2006 |

New statistics show that current foreclosure activity rates across California rose dramatically during the second quarter, marking the biggest difference between first and second quarter rates in 14 years. As usual, rising interest rates are said to be at blame, however many feel that the slowing appreciation in home values has also contributed to foreclosure, since homeowners are not able to build up equity in their homes as quickly as in the past. With equity, those in default have a better chance of being able to refinance or sell their homes before the final stages of foreclosure set in.

20,752 notices of default were issued during the second quarter. This figure is 67.2 percent higher than the same period of 2005, and 10.5 percent higher than the first quarter.

Despite the drastic increase, California’s second quarter statistics are still below the national average for the period. The information should not be taken as more serious than it is either. While the figures seem high in comparison to recent years, we have to realize that in recent years’s