Last we heard, foreclosures were waaaaaay down in Los Angeles, so what gives with this new information that foreclosures in Southern California are at a two-year high? The same data, from RealtyTrac (via the LA Times), shows the number of foreclosures in LA County almost tripled—to 1,231 houses—between December and January. The last time banks took that many houses around here was December 2012. ("Similar patterns were seen in Orange, Riverside and San Bernardino counties.")
RealtyTrac's people say this is a result of the Homeowners Bill of Rights, a set of laws put into effect about a year ago, that prolong the foreclosure process because they give more protections to homeowners. So these are probably mostly older foreclosures just making it through. (Marketwatchers previously anticipated this effect of the Bill.) "The number of notices of default - which start the foreclosure process - remains roughly at the level it's been for the last six months," notes the Times, and the number of January repossessions (1,232) is at least still a far cry from the February 2009 zenith of 4,154.
· Foreclosures surge in Southern California, but for how long? [Curbed LA]
·LA Homeowners Being Foreclosed On at Lowest Rate Since 2007 [Curbed LA]