Foreclosure Numbers Up
ForeclosureS.com reported a rise in mortgage foreclosure activity in the first quarter of 2006, particularly in major urban centers. Several western and southwestern housing markets appear to be the hardest hit.
For example, Los Angeles County recorded 6,314 pre-foreclosure filings and foreclosures through March, up from 4,911 in the fourth quarter of 2005. In San Diego the numbers jumped from 1,565 in the fourth quarter of 2005 to 2,241 in the first quarter of 2006. In Las Vegas, there was foreclosure activity on 3,246 homes in the first quarter, compared to 1,480 in the previous quarter.
ForeclosureS.com’s president sees the increase in foreclosure activity as coinciding with cooling markets in previously overheated areas, and with the steady rise in interest rates. Additionally, it is expected that rampant speculation in some markets, coupled with a slowdown in price appreciation will continue to lead to an increase in delinquencies and foreclosures.