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Snorkel Up! Another Foreclosure Wave Coming

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Real estate number crunching firm DataQuick is reporting some fairly grim news: In the second quarter, foreclosures fell 30 percent from a year ago in Los Angeles County, but notice of defaults--the first sign of the foreclosure process--rose 13.8 percent from a year ago. "That means the foreclosure numbers will probably shoot back up during the third quarter," DataQuick President John Walsh said in a statement. Notice of defaults and foreclosures are both down in Riverside County. Is that a sign that there simply are no more homes left to go into foreclosure? Well, as the Los Angeles Times notes, the slowdown in foreclosures could be tied in to the fact that some believe "lenders have slowed foreclosures to avoid flooding the resale market with low-priced homes." Meanwhile, look at DataQuick's figures for San Francisco, where notice of defaults for the second quarter rose 40 percent from a year ago. A sign more affluent neighborhoods are in trouble? The Daily News notes that "while most foreclosure activity was still concentrated in affordable Inland communities, there were signs that the foreclosure problem was intensifying in more expensive areas." Meanwhile, the subhead on the LA Times uses the phrase "coming onslaught" to describe what's next for foreclosures.
· Fewer foreclosures initiated in California in second quarter [LA Times]
· Homeowners falling behind in mortgage payments on rise in both California and L.A. County [Daily News]
· California Second Quarter Mortgage Defaults Edge Down [DataQuick]