California Foreclosures Still on the Rise

Posted in General, October 19th, 2006 |

As home sales slow and property values drop, California’s foreclosure rate is on the rise. Since the third quarter of 2005 to the third quarter of 2006, foreclosures in California have jumped 111%.

The foreclosure rates steep rise corresponds to the increase in interest rates as the real estate market slows. With higher monthly payments to make, many homeowners simply cannot keep up.

Due to declining home prices, homeowners have not been able to bail themselves out by taking out a second mortgage, a home equity loan, or even by selling the home. While the increase is foreclosures is a trend general to California, it is the inland markets where the rate have jumped the highest. Now would be a good time for foreclosure investors to investgate purchase possibilities.

[via Central Valley Business Times]