Foreclosure Rates Rising in Northern CA

Foreclosures were on the rise in Northern California in the second quarter, and Southern California may soon follow suit, according to Foreclosures.com, a Fair Oaks, Calif.-based investment advisory firm specializing in distressed property.The steepest rise came in Contra Costa County, where there were 26% more filings than in the first quarter, followed by Alameda County, with a 22.6% increase, the company said. Meanwhile, foreclosures fell 3.3% in Los Angeles County and declined in other parts of Southern California, but the company said this is unlikely to continue. "We expect the Southern California trend to reverse in the near to intermediate future," said Alexis McGee, president of Foreclosures.com. "We have the combination of rising interest rates and very high housing-cost-to-income ratios, especially in Los Angeles, Orange County, and San Diego, and that mix is putting pressure on overextended homeowners there." The company can be found online at http://www.foreclosures.com.