Los Angeles County Notices of Default Up 33%; Default Research Blames Unemployment, Economy
Los Angeles County Notices of Default rose sharply in August to their highest level since September 2009. The numbers - a leading indicator of the health of the Los Angeles housing market - show that 5,323 homeowners were placed on notice by their lenders that their mortgage payments were late.
- Los Angeles-Long Beach, CA (1888PressRelease) September 16, 2010 - Notices of Default, issued when mortgage payments are at least 30 days late, is the first step taken by lenders to notify mortgagors that additional collection steps, including foreclosure filings, will be taken unless immediate steps are taken to bring a mortgage current.
Serdar Bankaci, CEO of Default Research, Inc., says the reason for the recent surge in pre-foreclosure filings is due to high Los Angeles County unemployment rates as well as weak economic data - both locally and statewide.
"The numbers don't lie. They very clearly demonstrate that any recovery in state and national economic performance isn't trickling down to workers - the very people responsible for making these mortgage payments," said Bankaci. "Until unemployment is curbed and workers see a real, sustained recovery in employment and wages, I expect pre-foreclosure filings to continue rising."
"Pre-foreclosure is a result of weak job and economic numbers. When borrowers lose their jobs, they heavily rely on unemployment - and jobless benefits aren't nearly enough to fill the financial void left by their lack of income."
While notices of default in the Los Angeles region in August reached 5,323, it is still considerably less than the 7,980 notices of default issued in July, 2009 at the height of the housing crisis.
Requests for interviews or additional information are welcome.
Contact:
Josh Chernikoff
Default Research Inc
(888) 211-8396 ext. 705
joshc ( @ ) defaultresearch dot com
http://www.defaultresearch.com
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