Bank and Federal Home Foreclosures in Los Angeles Highest in the County

by on Foreclosures

Los Angeles posted the biggest number of bank and federal home foreclosures in the whole region of Los Angeles County, California during the period January-March 2011. Despite the high number, the whole state of California posted a drop in foreclosure numbers for the 2011 first quarter compared with the same 2010 three-month period.

For the first three months of the current year, Los Angeles foreclosures for sale and distressed properties totaled 2,553, representing the highest total for Los Angeles County in the first quarter and giving the metro area a foreclosure rate of one household for every 46 residential units. Los Angeles was followed by Long Beach which had 571 foreclosures for the period, with Palmdale coming in at third with 554 and the area of Lancaster posting 545.

Despite the seemingly high number of foreclosures in the county, statewide numbers were actually down for the quarter. Foreclosed homes in California and properties that have at least one filing statewide reached a total of 168,543 during the quarter, representing a 4% drop compared with the 2010 fourth quarter. Compared with the 2010 first quarter, the total was actually down by 22%. However, the state still had the third highest rate of foreclosure for the period in the whole U.S.

The number of bank and federal home foreclosures in California accounted for almost a quarter of the nationwide foreclosure total for the January-March 2011 period. This also means that one household for every 80 residential units in the state was under foreclosure for the three-month period. Among the 20 metro areas in the U.S. with the highest foreclosure rates for the quarter, 11 can be found in California.

Analysts find bank foreclosed homes to be second highest nationwide in Modesto, with the metro region having a ratio of one household for every 46 residential units under some form of foreclosure for the quarter. Stockton ranked third nationwide, having a foreclosure rate of one household per 47 residential units. Meanwhile, nationwide foreclosures for the three-month quarter posted a decrease of 27% compared with the 2010 first quarter. Compared with last year's fourth quarter, nationwide filings were down by 15%.

Despite the decrease, housing experts predict that federal home foreclosures and bank owned properties will increase again in the coming months. Most of them believe that the market is not yet out of the crisis and foreclosure figures and housing prices will continue to record declines for the rest of the current year.