Property Shark’s Q2 Foreclosure Report: Part 1

Property Shark just released its 2nd Quarter Foreclosure report, and it ain’t pretty. Although my sense has been that price drops have slowed in certain areas, this report show the damage the last year has done, and just how drastically Los Angeles has been hit: Out of the 4 metro areas the report examines (LA, Miami, NYC and Seattle), Los Angeles is far, far worse off in terms of the numbers of foreclosures and the amount of outstanding debt Angelinos are defaulting on. Here’s some of the key findings – my next post will look at specific areas. 

• LA’s foreclosure rate per household is 15 times higher than NYC’s. It’s also 7 times higher than Seattle. 
• The overall “lien amount” (the amount we collectively owe to mortgage holders) for LA has seen a “shocking increase” according to the report: “The aggregate lien amount for properties scheduled for trustee sale during the current quarter was over $5 billion.” That’s almost 4 times higher than last year at the same time. 
• LA also had an astounding 63% increase in new residential foreclosures over last year’s Q2. 
• To continue the doom and gloom, all those numbers above add to  a 282% increase in the number of new foreclosure auctions scheduled this quarter, compared to the same time last year.