Los Angeles - The Gang Capital Of The World, home to more than 1500 gangs, birthplace of the Crips, Bloods, MS-13, 18th St. and Sureno Gangs in Southern Cali. City of Angels is full of drive-by shootings, drugs, blood money, lowriders, and automatic guns. Killa Cali 187 The Songs are: 1. LA, LA, - Mobb Deep 2. California Vaction - The Game 3. Welcome To California - Mr. Criminal 4. Another Day In LA - Spider Loc 5. State Of Emergency - The Game
Latest Updates: California RSS
-
California LA West Coast
The Truth
-
Foreclosure Tsunami Continues in California
The Truth
The foreclosure tsunami in California continues unabated. More foreclosures were started in California during the second quarter of 2007 than any comparable period in over ten years. We need to go all the way back to 1997 to see such record volume of foreclosures within the state. What has caused this tsumani? It has been caused by the “perfect storm” of depreciating home prices, anemic sales, re-setting adjustable rate loans, and the mortgage meltdown in the financing sector.
When we analyze the statistics, we can see that the vast majority of the loans that went sour were originated by lenders between the summers of 2005 and 2006. If you remember those halcyon days, real estate appreciation was still in double-digits and we were experiencing the tail-end of historically low interest rates. As a result, lenders liberalized their guidelines to maintain high loan volumes. But because interest rates had risen, lender utilized adjustable rates mortgages with artificially low “teaser rates” to qualify more borrowers. Property owners took advantage of those loosened guidelines and teaser rates to obtain loans in record numbers. Its those teaser rates, now adjusting up to higher market rates, that are causing the tsunami of foreclosures we are experiencing today.
Keep in mind, there are 8.4 million houses and condos in California. The vast majority of those properties are financed by mortgages that are current and continue to be current.
Nevertheless, the loans that did fall into default last quarter were mostly originated between July 2005 and August 2006, which was at the height of the mortgage frenzy. The median price paid for a California home purchased during that period was $460,000. In contrast, the median price paid for those properties where mortgages went into default last quarter was only $445,500. (This discrepancy is caused because there is a lower default rate with higher valued properties.)
The median mortgage for those properties is $342,000, and their mortgage payment is approximately $2,225 per month. Homeowners were five months behind on their payments (up from three months) when the lender started the default process. The borrowers owed a median $11,126 in unpaid mortgage payments. In other words, once the foreclosure starts, the borrower has the choice to either “reinstate” the loan by paying the $11,126 arrears, or “redeem” the loan (later in the foreclosure process) by paying the loan balance (i.e. $342,000) and the arrearage (i.e. $11,126). Obviously, reinstating is preferred to redeeming.
The median age of these defaulted loans is 16 months, which corresponds to the peak of loan originations in August of 2005. And, as we all know, the primary loan utilized for purchasing home during that period was the
1. Notices of Default.
The first step in the foreclosure process in California is the recording of a Notice of Default (”NOD”). There were 53,943 Notices of Default recorded in the second quarter of 2007 (April to June). That is a shocking number in itself, but even more devastatinging when you consider that it was 15.4% increase from the previous quarter, and up an earth-shattering 158% compared with the same quarter of 2006.
This was the highest levels we have seen in California since 1996, when foreclosures were at their worst. In 1996, for those of us that remember those dreadful days, 61,541 foreclosures were started. The lowest level recorded was in the third quarter of 2004, when only 12,417 NODs were filed.
Although 53,943 default notices were recorded in California last quarter, only 50,901 properties were affected. How is that possible? Many homes are financed using more than one loan, what are called “piggy-back” loans. Utilizing multiple loans on the same property helps homeowners avoid mortgage insurance. That is up 162.8% from the second quarter of 2006.
The default numbers reflect wide regional differences. The second-quarter numbers were a record in Riverside, San Bernardino, Contra Costa, Sacramento and most Central Valley counties. However, in Los Angeles County, the state’s largest, it was still less than half the first-quarter 1996 peak. This reflects the depth of the recession in the mid-1990s, as well as the relative strength of today’s housing market. At least so far
-
What California tribal casinos are on or close to earthquake faults?
The Truth
Earthquake faults in California that will affect how people travel to and from the casino properties. Faults that may damage properties if they are not built to earthquake standards.
-
Outrage Over California Murders
The Truth
Authorities investigating why convicted sex offender was on the streets -
Unemployment takes toll in California
The Truth
In California, where unemployment is higher than the national average, thousands desperately still seek work each day. -
Body of Missing California Teen Believed Found
The Truth
this guy should never have been let out of prison…………. -
What are the chances that Pinole, California will have a large earthquake anytime soon?
The Truth
I have been SO incredibly paranoid about an earthquake that can occur in the Bay Area, especially with all the other damaging and fatal earthquakes that have been happening. What are the chances that a big earthquake can hit this area soon? Thanks in advance.
-
The Truth
California Sex Offender With Post Office Job Reassigned
A Southern California letter carrier who is a registered sex offender has been reassigned after concerns were raised that he was delivering mail in an area with many children.Read more on Fox News
-
Re: California Unemployment Quake
The Truth
Video Cam Direct Upload -
The Truth
Pac-10 Men: Randle leads California past Ducks
LOS ANGELES — After making a clever move and a slick layup for his third basket in the first 100 seconds, Jerome Randle says he just had a feeling he could hit every shot he took in California’s Pac-10 tournament opener.Read more on The World