California foreclosures increase 221 percent in October 2007
MT. PLEASANT, PA.
November 15, 2007 6:03am
• Foreclosures increase 18,975 in one year
• ‘Southern California is the epicenter of the foreclosure crisis’
California foreclosure filings were up 221 percent in October 2007 compared to the same time last year, according to figures compiled by Default Research Inc., a foreclosure research company.
According to its figures, San Diego County led the state with 3,427 foreclosure filings, up 400 percent in October from a year earlier. Riverside and Los Angeles Counties followed San Diego with foreclosure increases of 290 percent and 160 percent respectively.
“Right now, Southern California is the epicenter of the foreclosure crisis,” says Serdar Bankaci, president and CEO of Default Research, which is based in Mt. Pleasant, Pa.
“Last month was bad for the Golden State and the coming months could be even worse,” says Mr. Bankaci.
He says the state could see an even bigger spike in foreclosures in the next two quarters as a large number of three-year adjustable rate mortgages are due to reset. Many of those deals were made in late 2004 and 2005 when the market was booming.
“California had some of the most expensive real estate in the country and many people bought homes they couldn’t afford with teaser loans,” Mr. Bankaci says. “Those families who lived beyond their means are going to go from boom to bust and unfortunately join a growing number of Americans in foreclosure.”
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