Los Angeles Foreclosure Homes Hit the Roof
Homeowners across California will have a rather unusually hot summer in 2008 especially with the rising rate of bank foreclosures. The foreclosure rates in California have been on the rise for almost five years now and there is no respite from it even in 2008. The reason for such a high number of homes in foreclosure is being attributed to the subprime adjustable-rate mortgage or ARM. Apart from the increase in the interest rates, the overall market in California and especially in Los Angeles doesn’t look bright either. Home prices have been falling, there’s a credit crunch as far as mortgage lending is concerned, neighborhoods bear a ghostly resemblance and crime rates are escalating. That is the true picture of how such a high number of California foreclosed houses has affected the economy of the state. This is the same state where home values had tripled around 1995.
Los Angeles is no more the metro that could take price from its high rise structure; in fact, off late it is the ailing metro that has been subdued by the wave the Los Angeles bank foreclosures. An integral part of the 57,158 California bank foreclosures came from the Los Angeles Metro. The number clearly shows that there has been an increase of nearly 120% since 2006. The foreclosure rates in Los Angeles County along with Orange County jumped five fold especially in the final quarter of 2007. Most of the neighborhoods in the county were reeling under the wave of Los Angeles foreclosure homes except for Santa Clarita, which was still better off. Some of the zip codes in the county that were hard hit include 93535, 93550/51/52, 90650, 91342 and many more.