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Old 04-26-2008, 05:17 PM
 
636 posts, read 2,514,291 times
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L.A. Land : Los Angeles Times : Update: Where the foreclosures are: Hardest-hit ZIP Codes (http://latimesblogs.latimes.com/laland/2008/04/where-the-forec.html - broken link)

7 are in Palmdale/Lancaster. The other 3 = Sylmar, Norwalk, Reseda.
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Old 04-26-2008, 05:24 PM
 
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Not too surprising. I'm sure Santa Ana and Garden Grove aren't far behind from the stats I've seen.
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Old 04-26-2008, 05:35 PM
 
1,297 posts, read 5,242,216 times
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Quote:
Originally Posted by LALady View Post
L.A. Land : Los Angeles Times : Update: Where the foreclosures are: Hardest-hit ZIP Codes (http://latimesblogs.latimes.com/laland/2008/04/where-the-forec.html - broken link)

7 are in Palmdale/Lancaster. The other 3 = Sylmar, Norwalk, Reseda.
All mostly in geographically undesirable areas and/or with low income and 1st time homeowners.

This is just a cleanup and return to reality for renters who took the not so bold chance and started renting homes from a bank rather than an apartment from a landlord. Zero down and nothing to lose. First and last month deposit was in the form of escrow closing costs, monthly rental payments were called mortgage payments. They received the expected & contracted rent increase notice in the mail from their landlord/"mortgage co" and are now breaking their lease agreements. All this in exchange for 7 years bad credit, stamped on their wallet.

Anyone interested in buying low income, fairly new construction, rental properties in mostly undesirable locations will have quite a few choices these next few years. Hopefully the average rent for these areas will provide an acceptable ROI to create smooth and swift transfers of ownership.
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Old 04-26-2008, 07:01 PM
 
2,579 posts, read 8,132,282 times
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Quote:
Originally Posted by greggd View Post
All mostly in geographically undesirable areas and/or with low income and 1st time homeowners.

This is just a cleanup and return to reality for renters who took the not so bold chance and started renting homes from a bank rather than an apartment from a landlord. Zero down and nothing to lose. First and last month deposit was in the form of escrow closing costs, monthly rental payments were called mortgage payments. They received the expected & contracted rent increase notice in the mail from their landlord/"mortgage co" and are now breaking their lease agreements. All this in exchange for 7 years bad credit, stamped on their wallet.

Anyone interested in buying low income, fairly new construction, rental properties in mostly undesirable locations will have quite a few choices these next few years. Hopefully the average rent for these areas will provide an acceptable ROI to create smooth and swift transfers of ownership.
yep, that 'bout sums it up. if you have to borrow the downpayment, which is what "zero down" amounts to, you can't afford to buy. many didn't want to live within that reality, and now they're suffering and blaming "predatory lenders" for their woes. the situation is unfortunate, but not particularly heart-rending, from my point of view.
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Old 04-27-2008, 01:27 PM
 
636 posts, read 2,514,291 times
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Quote:
Originally Posted by greggd View Post
All mostly in geographically undesirable areas and/or with low income and 1st time homeowners.

This is just a cleanup and return to reality for renters who took the not so bold chance and started renting homes from a bank rather than an apartment from a landlord. Zero down and nothing to lose. First and last month deposit was in the form of escrow closing costs, monthly rental payments were called mortgage payments. They received the expected & contracted rent increase notice in the mail from their landlord/"mortgage co" and are now breaking their lease agreements. All this in exchange for 7 years bad credit, stamped on their wallet.
Wow...never heard it described like that.
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Old 04-27-2008, 01:40 PM
 
Location: SoCal
14,531 posts, read 17,679,518 times
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I would call it zero down and nothing but your credit rating to lose. Some people don't place much value on their credit rating, while others probably never gave it much thought.

The ease of getting a 5 year mortgage and nothing down probably gave some naive home buyers the impression that it would be just as easy to get a longer term mortgage at the end of the 5 years. Others may have expected to sell that house after 5 years and rake in a tidy profit. Oops! Wrong, you lose!

Anyway Greggd is right. Palmdale and Lancaster have always been of lesser desirability because they're out in the desert with a long commute into LA proper. Not that many people want to live out in the sticks. Low demand = low prices = unlikely to sell your home before it forecloses.
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