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Friday, August 11, 2006


CA Foreclosures Spike Fastest In 14 Years

DataQuick Real Estate News reports that the foreclosure rate in California during the second quarter of 2006 rose faster than it has in 14 years.

According to DataQuick Real Estate News the increase in notices of default from 2005 to 2006 for Riverside County jumped by the biggest percentage in Southern California, up 104 percent in one year. Los Angeles County was up 45 percent.

The whole of Southern California averaged an increase of 69.5 percent, slightly more than two percentage points higher than the state average.

DataQuick's president, Marshall Prentice, said the trend "doesn't strike us as ominous," and cautioned not to blame it on adjustable-rate loans.

"We hear a lot of talk about rising payments on adjustable-rate loans triggering borrower distress," Prentice continued. "While there's no doubt some of that is going on, as far as we can tell the spike in defaults is mainly the result of slowing price appreciation. It makes it harder for people behind on their mortgage to sell their homes and pay off the lender."

— T.J. Sullivan
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