Defaults on Rise in California; Las Vegas, Phoenix Markets Cool
ForeclosureS.com, a Northern California based real estate investment advisory firm and publisher of foreclosure property information for over 14 years, reported today that foreclosure activity in several western markets was rising sharply after a first quarter dip.
"Year over year at the end of the second quarter of 2006, foreclosure activity in California has increased more than 67%," said ForeclosureS.com president Alexis McGee. She went on to say that recently hot housing markets in Las Vegas, NV and Phoenix, AZ were cooling off rapidly and that defaults there were on the rise as well. "Both Las Vegas and Phoenix were impacted by speculators," said Ms. McGee, and more than 25% of new home sales in both markets were going to out of state investors who had no intention of ever occupying the homes they purchased.
Now those who came late to the party, find themselves squeezed by rising interest rates and resulting negative cash flows. The speculators are definitely on the run, and walking away from properties they cannot afford to hold and cannot sell at a profit."
She went on to say that in Colorado, foreclosure activity had put Denver well up in the top 10 of metro areas with the highest foreclosure rates. "Almost 5,300 homes in Colorado have already been lost in foreclosure and, as of August 11, over 11,300 were in the pre-foreclosure process," said Ms. McGee. She cited recent reports by economists that showed that Colorado was lagging behind the rest of the nation in economic recovery from the 2001-2002 recession.
"A more severe situation, however, is in California," said Ms. McGee. "A primary reason is the overwhelming use of so-called creative mortgage products people were sold in order to buy ever more expensive homes." She added that more than $1 trillion of these exotic mortgages were due to reset in the next 18 months, "and payment shock to such homeowners would be severe if not financially fatal."
ForeclosureS.com has been analyzing markets, providing foreclosure lists and learning programs and assisting investors since 1992. The company recently developed a new investor oriented foreclosure property listing system and extended their services nationwide in late 2005, covering more than 961 counties across the U.S. with over 1,300,000 listings.
"Our objective at ForeclosureS.com," said Ms. McGee, "has always been to provide much more than just foreclosure lists and data. We offer both free and fee-based foreclosure buying information for both new and experienced real estate investors.
"Our free information includes a monthly e-zine ‘The Foreclosure Forecast’ with 10 years worth of articles available online. Our fee-based information includes nationwide conference calls to introduce new investors to foreclosure investing; a complete foreclosure investing home study program; and intensive hands on workshops at our offices that put our students out in the field with me and my coaches to do the actual work of a foreclosure property investor."
She added that her firm has also built a cadre of successful investor clients in order to provide personal coaching to give one-on-one guidance to program graduates.
Ms. McGee has spent her whole professional life in real estate — beginning with her studies at Arizona State University in 1983 in Real Estate Finance, then on to a career as a successful commercial real estate agent, and then on to personal investing in 1986. Finally, she became a national real estate investment trainer in 1992.
"Our mission at ForeclosureS.com has always been to teach investors how to create win-win scenarios that benefit both the distressed homeowner and the investor," said Ms. McGee. She continued, "That way, the homeowner conserves some equity for a new start, and the investor realizes a reasonable profit on resale of the property. That’s a much better solution than just standing back and seeing the owner lose everything in an auction on the courthouse steps."
ForeclosureS.com now offers current foreclosure statistics by state, county and foreclosure notice type available for media use. For information on how to access this information please email: email@example.com.