Resales of California foreclosures accounted for nearly 43 percent of total house sales in the state in the first quarter, an increase from 40.6 percent in the prior quarter.
The mortgage debt forgiveness program of BofA may further slow down foreclosures in Los Angeles as HAMP had a relatively better impact in Los Angeles than in other areas. Los Angeles ranked second in the percentage of troubled loans modified under the program.
The increase in foreclosures has allowed house sales in Southern California to escalate December of last year due to the cost reduction of condominiums and houses from the previous year.
Bank foreclosures have been occurring at higher rates in the suburbs as compared to cities, according to a UVA study. The crisis has been affecting changes in home ownership, suburban migration, urban development and business practices, the study said.
Los Angeles foreclosure homes for sale comprise the majority of available homes for sale in multiple listing services in the city as of September. Over 12,500 foreclosed homes were available for sale as of September.
Los Angeles cheap homes improved home affordability for first time buyers in the metro area. More buyers made home purchases in February despite the uptick in the median price to $315,000 because they believed the price was still affordable.
State efforts have partly cut down the number of foreclosed homes for sale in Los Angeles in the first quarter this year. One research firm reported that 16,549 homes in Los Angeles County received default notices in the first quarter.
California house prices jumped up 14.3% in March, thanks to higher demand in up-market areas like San Francisco Bay - but the news is different elsewhere.
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