Increased Foreclosure Activity Continues

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Home appreciation rates are beginning to decrease in Southern California
RISMEDIA, March 13 ? The number of foreclosures spread throughout Southern California, with San Diego leading the way (up 8 percent), according to Default Research (www.defaultresearch.com), a real estate research company for foreclosure properties.

“The real estate bubble has not burst in Southern California, but it sure is deflating,” said Serdar Bankaci, president and chief executive officer of Default Research, Inc. “The decline was bound to happen and so is the continued rise in foreclosures — the market is just adjusting itself right now.”

While San Diego had the highest foreclosure rate, Riverside County was a close second up 7%, followed by San Bernardino up 6%.

“If you are the first to approach the homeowners, these properties can provide an excellent opportunity for real estate deals with a possibility for great returns,” said Bankaci, whose company provides foreclosure data that arrive two to three weeks ahead of the competition.

Now spreading all over Southern California, Bankaci had pointed out the main reason for the dramatic increase in foreclosures in San Bernardino more than a month ago. According to Bankaci, the home appreciation rates are beginning to decrease and homeowners are no longer able to satisfy their debt by using equity built up in their homes.

“Many of the homeowners used ‘aggressive financing’ to buy homes they could not afford,” said Bankaci. “So, now many of the homes we see going into foreclosure have little equity left in them. I am sure the number of homeowners defaulting on their loans is going to rise as the appreciation rates on homes continue to slow down.”

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