Foreclosures up 200%; more in California

The state of California’s foreclosure rate is up 800 percent compared to a year ago, according to the LA Times. And, that’s only the average. In Ventura County, for instance, foreclosures are up 1,100%; Riverside County is up 900%; Orange County, LA and many southern California areas are up 700%. The rest of the country is not as bad, but foreclosures have increased tremendous amounts compared to past years. The foreclosure rate throughout the country is up 200 percent. Many of these homes were speculative buys, especially in Nevada, Arizona, California and Florida. No one ever intended to live in these places. They were just hoping to flip them for more money. What if you’re not a spec buyer? You own your house and you can’t make payments. FREDDIE MAC announced last week it will provide 20 BILLION to help people refinance. Washington Mutual is setting aside 2 Billion also. But, for the most part, your lender wants to work with you. They may offer you a 40-year loan instead of 30-year loan to help you keep your home. It will reduce your payment about 5 percent, which isn’t much. But if you’ve called before and gotten the blow off, give it another try.