Los Angeles County Pre-Foreclosures Decline 25%

In May 2012, 5099 property owners received notices, down from 6,806 in May 2011. The figures include Notices of Default and Notice of Trustee Sales.

Mount Pleasant, PA (prHWY.com) July 26, 2012 - Mount Pleasant, PA, USA, July 17, 2012 -- Default Research, Inc. (www.defaultresearch.com), today announced that May 2012 mortgage-related pre-foreclosure activity in Los Angeles County declined by 25%, compared with May 2011. In May 2012, 5099 property owners received notices, down from 6,806 in May 2011. The figures include Notices of Default and Notice of Trustee Sales.

Los Angeles County homeowners received 2,642 Notices of Default in May 2012, down from 3,051 in May 2011 (down 13.4%). In contrast, 2,457 Notices of Trustee Sales were sent to homeowners in May 2012, compared to 3,755 in May 2011 (a decline of 34.6%).

In California, homeowners receive a Notice of Default when their mortgage payment is at least 30 days in arrears; a notice of Trustee Sale is the homeowner's notification that the lender intends to schedule a sale in order to satisfy the terms of the mortgage, which is one of the homeowner's last chances to redeem their property before permanently losing it to the lender in a foreclosure action.

Default Research, Inc. Vice-President Burt Cooper said he believes California home prices have stabilized, but that the market continues to struggle against strong economic headwinds.

"I think we'd be looking at a much healthier Los Angeles real estate market, but for a couple of huge challenges," said Cooper. "First, prices have stabilized - they've risen 1.5% compared to April 2012. Here's the problem: They're still down 3.6% year-over-year, compared to a drop of 1.9% nationally."

Cooper indicated that the challenges Los Angeles' housing market faces stem from stubbornly high unemployment rates (12.2%, compared to statewide and national unemployment rates of 10.4% and 7.9%, respectively) and still difficult mortgage qualification conditions.

"Many would-be homeowners who would love nothing more than to make a home purchase are either locked out of the housing market due to not having a job, are earning much less than they need to make in order to qualify for a loan or - in many cases - have credit issues that are stopping lenders from giving their mortgage applications that much-needed stamp of approval," Cooper said. "This means that traditional homebuyers may be unable to tap into the few remaining great buying opportunities in Los Angeles's real estate market."

Cooper stresses that cash, a real estate-buying gold standard, makes it possible for buyers to tap into the best deals. This is good news for real estate investors who have access to cash, private money or lines of credit that can be used to purchase bargain-priced real estate in Los Angeles.

Contact :
Burt Cooper
Default Research Inc.
609 N Church St, Ste 5
Mount Pleasant, PA 15666
888-211-8396
info@defaultresearch.com
http://www.defaultresearch.com

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