Foreclosures Jump 800 Percent

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Foreclosures soared an annual 799 percent in Los Angeles County and California in the second quarter – a record 17,408 homeowners couldn’t make their mortgage payments and lost their property in the state, the Los Angeles Daily News reports.


In the county, 2,581 properties went into foreclosure, up from 287 a year ago, DataQuick Information Systems reported Tuesday.


Parts of the booming Inland Empire area were hit even harder, with foreclosures jumping 986.9 percent.

“The housing industry is in a recession, pure and simple, and it’s going to last until 2009,” said Jack Kyser, chief economist at the Los Angeles County Economic Development Corp.


“It’s going to get worse. I think it’s going to get very scary.”


L.A. County’s total is still about 50 percent under the record set in the mid-1990s during the previous real-estate meltdown. Unlike then, the large number of properties being foreclosed on is not pushing down home prices, DataQuick said.


“While foreclosures tugged property values down by almost 10 percent in some areas 11 years ago, their effect in most markets today is still negligible,” the company said.


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