Foreclosures up 67% in Laguna Beach

Laguna Beach foreclosures went up 66.7% in the past week compared to the same period a year ago, posting the tenth highest increase in the U.S., according to recent data from real estate information provider DataQuick.

Although foreclosures fell slightly on a quarter-to-quarter basis—a difference of two homes—the yearly figures spiked significantly, a surprising change in a town where foreclosures are normally hard to find.

A total of 15 homes were lost to foreclosures in the first quarter of 2010, compared to 17 in late 2009. However, in the same quarter last year, only 9 foreclosures took place, which means the overall trend is still upward.

Meanwhile, the number of homes that have received a notice of default (generally considered the first step of the foreclosure process) is down by 24.4.% from the last quarter, dropping from 45 homes to 34.

The latter actually explains the increase in Laguna Beach foreclosures, as some of the homes were eventually foreclosed on. This strengthens the fear of many real estate experts that another foreclosure surge may come later this year.

Richard Cirelli, who runs the Laguna Beach-based firm RTC Mortgage, says people have more equity in Laguna Beach because of the rapid appreciation of homes during the real estate boom. This, he says, is the reason more homeowners in the South Coast city are able to keep their mortgages current.

The rise in foreclosures, Cirelli said, can be explained by the interest rate policies over the last few years. Low-interest mortgages were offered mostly to homes under $729,750, which is less than most homeowners currently owe, so few homeowners could benefit from the government’s foreclosure prevention efforts.

 

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