Foreclosures in California Continue to Rise
The number of foreclosed homes in California went up more than 20 percent in March. It was the second highest month nationally since the firm RealtyTrac began keeping track at the start of 2005.
Tuesday, April 15, 2008
Nearly 65-thousand California properties were in some stage of foreclosure last month. That’s the worst in the country by far – more than double that of second-place Florida. And California’s foreclosure rate – one for every 200 homes – was second only to Nevada.
RealtyTrac’s Rick Sharga says the biggest cause was those adjustable-rate loans that continue to go up.
Sharga: “In the state of California, we’re really still suffering from affordability issues from a few years ago, where people overextended themselves to buy homes that they ultimately couldn’t manage economically and used risky financing to get in.”
Stockton remained the metropolitan area with the highest foreclosure rate in the nation, but it had plenty of company: Modesto was second, Riverside fourth and Sacramento eighth. San Diego came in twelfth.