More houses going into foreclosure in California
California Housing Crash, Real Estate August 13th, 2009
According to the LA Times:
July stats from ForeclosureRadar show that the backlog of California homes in default, but not yet repossessed, keeps growing.
At some point, many of these properties will be repossessed and put back on the market. Some may be kept by the current owners through loan modifications, but that hasn’t happened much so far. Until then, they remain clogging the system as “shadow inventory,” most likely to be foreclosed and sold again.
More repossessions are coming, however, due to the degree to which so many in California are underwater on their mortgages. The average California home in foreclosure has a loan balance of $425,000 but an estimated value of $237,000, ForeclosureRadar says.
