Listings of foreclosed homes grew in October in Glendale, a city in Los Angeles County and located in the San Fernando Valley, according to a foreclosure report from a California-based real estate research company.
One out of every 290 homes in Glendale was in default or in foreclosure in October, an increase of 32 percent compared to the previous month, when the rate was one out of every 384 homes. A total of 238 homes went into default or foreclosure in Glendale, showing the adverse effects of high unemployment rates and loans that had terms unfavorable to borrowers.
Keith Sorem, a realtor based in Glendale and working with Keller Williams, said that he expects more foreclosures in the city if the unemployment problem is not addressed.
In contrast, nearby cities such as Burbank and census-designated places such as La Crescenta and La Canada Flintridge experienced drops in foreclosure activity.
La Crescenta had the most substantial drop, falling from a foreclosure rate of one out of every 81 housing units in September to one out every 160 units in October. Realtors, residents and housing advocates were astounded by the sharp foreclosure drop in La Crescenta because the area once had a foreclosure rate of one out of every 48 units in one particular quarter.
According to housing analysts, listings of foreclosed homes declined in some California areas because of the increased focus of federal and state officials on the implementation of the Home Affordable Modification program. The moratorium program of the state also delayed foreclosure actions on many distressed borrowers.
Paul Habibi, a real estate professor at the University of California in Anderson, said the renewal of the first-time buyer tax credit and its expansion to include move-up buyers have helped rejuvenate the housing market. He added that the loan modification program appeared to have slowed the pace of foreclosure activity a bit.
In Burbank, one out of every 298 homes was in foreclosure in October, a drop of 27 percent from September but still an increase of more than 200 percent from foreclosure filings in October last year.
In the La Canada area, one out of every 381 houses was in foreclosure, a drop of 21 percent from September.
Despite the drops in foreclosure activity, housing analysts expect more residential properties to enter listings of foreclosed homes in the coming months after various factors temporarily holding back foreclosures are reversed.
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