Riverside is a little east of Los Angeles California. As you might be painfully aware the Los Angeles area of California is one of the absolute worst places in the United States of America to own a house because values and prices have fallen so fast and so far that homes are literally being valued as low as a few pennies on the dollar of what they were actually purchased for.
In a more easy to understand way to put it, homes that were worth a half million dollars are now being listed, not sold mind you but listed as low as a hundred thousand. And to make that matter even worse, that same house might actually have two mortgages on it and the owner might actually be into the house and still owe a half million or more on it.
It doesnít take a math scholar to understand that there is no way at the rate of the current market that the house would ever be worth more than is owed on it. At least that is not going to happen in the lifetime of the person that holds that mortgage unless things change quickly and rapidly. And there is very little chance of that actually happening in time to salvage many of the homes in the Riverside area.
That means that there is soon to be another wave of foreclosures and repossessions in the area and the values of the homes in the area and on the market will drop even farther. This can be a great thing if you are in the market to buy but it really puts you in a bad place if you are one of the many millions of folks in southern California that already own one and are watching your home's value literally go down the drain.