And The Reason That California Foreclosure Rate Is Up 327% from ‘07 levels Is Because…
By: Pam On: Apr/22/08 - 4 Comments
The LAT’s referenced this study put out by DataQuick. It details the trends in the California market:
The number of California homes going into foreclosure jumped last quarter to its highest level in more than 15 years, as the market continued to works its way through declining home values and a pool of at-risk mortgages that were originated in 2005 and 2006, a real estate information service reported.
At risk basically means that the person borrowing is a credit risk and that it should come as no surprise that there is a default in the loan
Some of the loans now exploding were made in 2005-2006 and were 80/20s where the borrower put 0 down, and other loans were based on the borrower putting virtually $0 down.
April 22, 2008 - 03:32 PM on April 22nd, 2008
[...] neha wrote an interesting post today onHere’s a quick excerptThe number of California homes going into foreclosure jumped last quarter to its highest level in more than 15 years, as the market continued to works its way through declining home values and a pool of at-risk mortgages that were … [...]
April 22, 2008 - 10:39 PM on April 22nd, 2008
I can tell you at least one reason why there are so many foreclosures. FHLMC encouraged lenders to give mortgages to illegal aliens, saying that illegal aliens were an “underserved market”. Exactly how much greater a credit risk can someone be who could be deported at any time? The house next to mine went into foreclosure when the owner picked up his wife and five kids and headed back south of the border when the employer sanctions law passed in the state legislature. Now it’s derelict and has been heavily vandalized.
April 22, 2008 - 11:39 PM on April 22nd, 2008
What FAO says is true and is one factor of the problem. In general, the Gov’t (led by the Democrites) has been pushing lenders to lend to poor and minorities that would normally not have qualified. The practice of “redlining” was attacked. So they relaxed the standards, and guess what? Now they can’t pay and we have a problem. Instead of the Democrites being properly blamed, it is all the fault of the lenders.
April 22, 2008 - 11:42 PM on April 22nd, 2008
During the home frenzy peak, we saw speculators selling homes to each other. When that becomes the majority of the sales, look out! The bubble is about to burst.