Foreclosures Dip, But Adjustable Mortgages Set To Spike

LOS ANGELES (CBS) — Fewer Southland homeowners struggled to keep up with their mortgages in December, but there may be more turbulence for those with adjustable rate mortgages.

KNX 1070’s Pete Demetriou says despite home foreclosures dropping 14 percent in California, people in downtown LA are just not that optimistic.

Analysts warn that despite the upbeat data, a large number of adjustable rate mortgages are about to adjust upward in the coming months, which may trigger a new mortgage crisis.

One man told Demetriou he has seen four homes in his Long Beach neighborhood fall into foreclosure this year alone, and the situation is likely to worsen in about six months unless the job picture turns around significantly.

(©2010 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

  • Ralph Reyes


    Wells Fargo foreclosed on my home last week without my knowledge. I was sent a Notice of Trustee Sale last March, and have been trying to modify my loan since then. I was on a trial payment plan and made all of my payments. I was sent a denial letter dated 12/21/10 and as I was told I didn’t qualify because I earned $54 too much.

    They mailed a check to me in the first week of January while I was out of state. I got back on the 10th and was compiling my paperwork to start the modification process again. On 1/17/11 I called to Wells Fargo to make a payment by phone and to start the loan mod and was told the home was sold a week prior.

    I believe I should have been sent a new Notice of Trustee Sale since the last one I received was in March 2010. I did not know they were going to foreclose on me for $54 so fast.

    Please refer me to a good foreclosure attorney, I would really appreciate it.


    Ralph Reyes

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