Well folks, many people have been saying for years that a day of reckoning would come, and that day may now be upon us. DataQuick is reporting that foreclosures in California for the 4th Quarter of 2005 were up 19% over the quarter before, and 14.8% in Santa Cruz county. That is a significant jump! Why are foreclosures up, even though the unemployment rate has held steady or improved? I invite you to read the article on DataQuick’s web site:
There are of course many theories as to what is going on here, but it all boils down to this: many people have bought properties they can barely afford, and when their circumstances change (through job less, divorce, higher interest rates, etc.) – they get behind on their payments.
It is important to note that these foreclosure numbers are for foreclosure notices only – many home owners, when they receive a foreclosure notice, are able to take steps to stop the foreclosure process and stay in their homes.