Lisa Simpson
Aug 15,2008
In: Foreclosure Homes

California Foreclosure Homes

California State lies to the west of USA hugging the Pacific Ocean. It is the most populous state of the country boasting of four famous cities – Los Angeles, San Diego, San Jose and San Francisco. It has a varied clime and diverse population. California offers a variety for the eye from mountains, to deserts and forests. The Central Valley dominates California – it being one of the most fertile agricultural area in the world. The fortunes of California changed with the coming of the Gold Rush in the middle of the 19th century. The dawn of the 20th century marked the beginning of California’s fame as the prime entertainment centre in the world. Simultaneously it carved a niche for itself in various kinds of industry like aerospace, petroleum, information technology etc. California ranks among the top 10 large economic centres of the world.

Into this paradise has sneaked in California foreclosure homes. Today the number of California foreclosure homes makes it rank among the top 5 offending states in the country. Perhaps the very prosperity of California attracted speculators and investors who have largely contributed to the crisis of California foreclosure homes.

In the second quarter of this year more California foreclosure homes have been recorded against the backdrop of falling real estate and slump in the economy. The risky sub-prime loans contracted during 2005 and 2006 are being blamed largely for this increase in California foreclosed homes. Despite intense remedial measures undertaken by federal and state governments California foreclosure homes continues to dominate the scene. From April to June there were a record number of California foreclosure homes. By foreclosures all the three stages of the judicial process is referred to – default and auction notices as well as bank repossessions. There were 121,341 default notices during this time – all the houses poised to enter the zone of California foreclosure homes. It was an increase of California foreclosure homes by 6.6% from the first quarter and about 124.9% from the second quarter of the previous year according to DataQuick.

Most of the California foreclosure homes are concentrated in certain areas where development had been frenetic during the boon years. The easy to get sub-prime loans are responsible for this surging tide of California foreclosure homes today. The increase of California foreclosure homes from first to second quarter has been modest indicating most probably that lenders are becoming more proactive with borrowers and avoiding more California foreclosure homes for their own interests.