The Great Rise Of The Foreclosure Rate in California
The issue of foreclosed homes in California has only increased over the years. Since last year, the number of foreclosures within the state has increased by more than 300%. That means, there are three times more California foreclosure homes this year than last year. It is certainly a very difficult proposition, which is giving a lot of bad credit marks to people throughout the state. Going by this figure, there are as many as five hundred foreclosures for sale arriving on the Californian land each day.
In the first quarter of 2008, there were 47,171 foreclosed houses in California. This is definitely an increase from last year’s numbers. In the same quarter last year, there were only 11,032 foreclosures. This clearly shows how the number of foreclosures has more than tripled over just one year.
But this increase in the number of California foreclosures has more serious implications than that. It strongly suggests that people in this state are taking home buying quite casually. There are a lot of mortgage options available in the state, even mortgages for people with bad credit scores. This is what entices people into going in for such kinds of loans, which are saddled with high rates of interest. It is only when the amortization process begins that the homebuyer understands their inability to make the payments on time. This is what has brought about the rise in California foreclosures for sale.
Another factor that has precipitated this increase is the lowering of home prices. Due to this, Californian homebuyers are not able to secure credit through refinancing options. This makes the situation graver for most homebuyers in California who have taken homes on mortgages with high rates of interest.
All such factors have combined together to create the upswing of the rate of foreclosure in California. The state is responding to the situation by increasing counseling options for homebuyers.
