Los Angeles Foreclosures: An Overview (January, 2008)

As per the data released by a leading foreclosure listing agency, Los Angeles foreclosures have seen a rise of 69% in the fourth quarter of 2008 as compared to the same period in 2007. However, in comparison to the third quarter of 2008, there has been a decline of 29%. The number of foreclosure auctions in the third and fourth quarters of 2008 stand at 15,673 and 11,232 respectively.

These figures though are chiefly being linked to the foreclosure law that was effectuated in September, 2008. The high numbers of foreclosure properties in December '08 (an increase of 110% in comparison with October '08) are a clear indication of this.

However, not everything is glum and the state of California is set to receive the second largest sum of money as part of the housing aid program (around $529 million), with $33 million earmarked for Los Angeles.

The Los Angeles Housing Department's head, Mercedes Marquez, said that members of her office have been contemplating on how the funds can be best utilized for quite some time now. She also said that a fair amount of money has been spent in purchasing data and then making comprehensive Los Angeles foreclosure maps so that they can focus on areas that have been affected the worst.

Their main aim, she went on to say, was to buy foreclosure homes, rehabilitate them, and then sell them to low income families, while also providing these buyers with mortgages.

While this might not seem like enough to rectify the ongoing situation, more relief is expected in the form of sterner measures being taken by the new administration. Many are of the opinion that this is a good period to buy amidst the usually cheap Los Angeles foreclosures.

If you do intend to buy amidst these homes, make sure that your research and search is thorough. With more homes continuing to join the already long list, you can do well do exercise some restraint.