REAL ESTATE : Lenders Find Foreclosures Are Falling as Real Estate Prices Are Climbing
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Foreclosures are down in Orange County and statewide, TRW Real Estate Market Information says.
The reason: Home prices are rising so rapidly that owners in financial difficulties can sell their house for more than what they owe the lender before the lender has to foreclose.
“A property is unlikely to go to foreclosure unless its current value is below what is owed on it,” said TRW Vice President Dan Corcoran.
“The way prices have been going up in California, there aren’t many properties like that.”
Orange County home prices rose 24% over the last year, TRW said recently, to an average $216,162.
By the end of August in Orange County, commercial and residential property worth $36 million had been foreclosed upon during the previous three summer months. In the three preceding spring months, $56 million worth of property was foreclosed on.
As home prices level off, TRW said, foreclosures should start to rise again.
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